North American long steel metal spread to remain stable, Gerdau says

Brazil-based steelmaker Gerdau expected to see stability in the current record-high metal price spreads in the United States continuing through 2022, chief executive officer Gustavo Werneck said on Tuesday November 30.

This would be fueled by positive economic data and expectations after the announcement by the US of a $1.2 trillion infrastructure stimulus package, he said.
Metal price spreads - the difference between finished steel prices and raw material costs, which in the US market means mainly scrap – have reached all-time highs in recent months.
A deal recently signed that will exempt the EU from the 25% import tariffs on steel products imposed by the US through its Section 232 trade protection measures, and replace them with a quota, would not pose a threat to that positive scenario, Werneck said.
The agreement set the annual average import volumes seen in 2015-17 as the total volumes permissible for more than 50 different categories of steel product. Werneck said that this would not put more pressure any one type of product than on others.

“We have never seen such high...

Published

Renato Rostás

November 30, 2021

19:40 GMT

São Paulo