Gerdau sees 2016 as another 'tough' year for Brazil's steel market

Brazilian steelmaker Gerdau expects 2016 to be another tough year for the local steel market, ceo André Gerdau Johannpeter said.


“[Next year] will be similar to 2015,” he said on Wednesday November 25 during a conference for analysts in São Paulo.
Steel-consuming sectors such as automotive, civil construction and machinery will continue to show a lack of dynamism, Johannpeter said.
The company forecasts a 12-14% year-on-year drop in steel demand in Brazil for 2015, and a further 4-6% decline next year.
Meanwhile, Gerdau is seeing some rebound in export markets for the automotive, automotive parts and machinery industries due to the depreciation of the Brazilian Real against the US dollar.

The steelmaker itself is also benefiting from the local currency’s problems. Its...

Published

Ana Paula Camargo

November 25, 2015

17:27 GMT

São Paulo