• Twitter
  • Facebook
  • LinkedIn
  • English English English en
  • Português Português Portuguese (Brazil) pt-br
Murray Advogados
  • Home
  • The Firm
  • Areas
    • More…
      • Probate and Family Law
      • Capital Stock
      • Internet & Electronic Trade
      • Life Sciences
      • Capital and Financial Market Banking Law
      • Media e Entertainment
      • Mining
      • Intellectual Property
      • Telecommunications Law and Policy
      • Visas
    • Arbitration
    • Adminstrative Law
    • Environmental Law
    • Civil Law
    • Trade Law
    • Consumer Law
    • Sports Law
    • Market and Antitrust Law
    • Real Estate Law
    • International Law and Foreign Trade
    • Corporate Law
    • Labor Law
    • Tax Law
    • Power, Oil and Gas
  • Members
  • News
  • Links
  • Contact
    • Contact Us
    • Careers
  • Search
  • Menu Menu
Murray News

Gerdau sees positive steel demand in North America

CEO says U.S. government’s infrastructure package is likely to generate demand for 5 million tonnes of steel, which will translate into actual demand as early as next year

11/10/2022


Gustavo Werneck — Foto: Julio Bittencourt/Valor

Gustavo Werneck — Foto: Julio Bittencourt/Valor

Gerdau is optimistic about steel demand in North America and sees robust cycles ahead in the region, despite logistical and labor hurdles, CEO Gustavo Werneck told reporters in a conference call.

“The current level of incoming orders and available production capacity give us confidence for a solid demand next quarter and next year,” he said. He cited incentives to reshoring – the U.S. government’s initiative to regain industrial processes.

Earlier this year, Gerdau received many orders for industrial warehouses to deliver products online, he said. In the last quarter, however, the orders shifted to new plants built to transfer production capacity to the United States from other countries.

“The phenomenon of reshoring is already a reality in our orders,” he said, without citing numbers. Mr. Werneck said the U.S. government’s infrastructure package is expected to generate demand of 5 million tonnes of steel, which will translate into actual demand as early as next year.

He also said that no new capacities have started to compete with Gerdau, and that inflation and economic slowdown will have fewer impacts on the company’s business.

The executive cited logistics and labor as challenges. He said Gerdau has many open positions and did not need to paralyze operations. This phenomenon is expected to be solved in the short term, he said.

The logistical challenges are mainly related to labor, the executive said, citing the difficulty of finding truck drivers and concerns about truck driver strikes in North America, while the record low water level on the Mississippi River impacts scrap purchasing and, to a lesser extent, affects customer deliveries.

Mr. Werneck also said that he is following uncertainties regarding global economic growth, the inflationary impact on steel demand in the international market, and the potential slowdown in China as a result of the country’s zero-Covid policy. He is monitoring the impacts of the Russia-Ukraine war as well, particularly on production and energy costs.

“We highlight the company’s resilience in the face of uncertainties in the macroeconomic scenario and as a result of transformations experienced in recent years,” he said, citing record results in North America in the third quarter.

“Our strategy and positioning in the region have been successful in recent years, with high volumes and strong demand from non-residential, manufacturing and energy sectors,” he said.

He also highlighted strong demand for heavy-duty vehicles and energy in the specialty steel operation, as well as the gradual recovery of semiconductor inventories, favoring the resumption of the automotive industry with the Chips and Science Act in the United States.

In South America, demand remains strong for construction and industry in Argentina and Uruguay, with construction activity at a high level this year, while Peru sees a growing volume as well, especially with the construction sector.

*By Cristiana Euclydes — São Paulo

Source: Valor International

https://valorinternational.globo.com/
10 de November de 2022/by Gelcy Bueno
Tags: Gerdau, in North America, positive steel demand
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on LinkedIn
  • Share by Mail

Pesquisa

Posts Recentes

  • Blockchain could have prevented INSS fraud, experts say
  • Gol parent says merger still on track despite Azul restructuring
  • GNA opens Brazil’s largest thermal power plant at Porto do Açu
  • Trump tariffs stall wood pulp price recovery
  • Share block sales hit R$15bn, nearing record in Brazil

Arquivos

  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
© Copyright 2023 Murray Advogados – PLG International Lawyers - Support Webgui Design
  • Twitter
  • Facebook
  • LinkedIn
Shell bets on agave as alternative energy source Equatorial Margin is Petrobras’s new target
Scroll to top