Gerdau expects section 232 tariffs to endure in 2019 - ceo says

Import tariffs on steel products in the United States created under Section 232 are likely to remain in place at least until the end of 2019, the chief executive officer of Gerdau, Gustavo Werneck, said during an event at the New York Stock Exchange on Wednesday March 13.

The move from Donald Trump’s administration boosted metal spread margins for steel producers in the US. This spread - calculated by the difference between input costs from scrap and steel products’ selling prices - is currently at its peak in at least two years, according to Gerdau.
Now, the company is aiming to increase prices in Brazil. There were some discounts granted recently in the domestic market, but foreign exchange rates and the recent cost pressure from the scrap and iron ore markets should prompt a price movement, Werneck added.

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Renato Rostás

March 15, 2019

15:35 GMT

São Paulo