Gerdau freezes price increase attempts in Brazil amid low demand, analysts say

Gerdau has halted price increase attempts in Brazil amid market weakness because of the Covid-19 pandemic, according to a report by local investment bank Itaú BBA from Sunday March 29.

The company mainly produces long steel in the country, although it also makes some hot-rolled coil and heavy plate at its Ouro Branco mill in the south-eastern state of Minas Gerais.
Domestic prices are currently at a 10% discount, or more, over imports after duties, taxes and overall costs, chief financial officer Harley Scardoelli and investor relations manager Rodrigo Maia told Itaú BBA analysts in a meeting.

“The main challenge comes from low utilization rates seen across the Brazilian steel...

Published

Renato Rostás

March 30, 2020

19:09 GMT

São Paulo