Gerdau warns of risks to Brazilian steel industry due to rising imports

Gustavo Werneck, CEO of Brazilian steel producer Gerdau, warned that high import levels could undermine the country’s steel industry in the absence of effective protective measures. This was reported by SteelOrbis.

According to him, several companies are already operating at a loss and may face difficulties in maintaining their operations.

Werneck added that imports are expected to exceed 6 million tons in 2025, equivalent to almost 30% of steel sales in the domestic market.

The CEO of Gerdau believes that restoring competitive conditions will require a reduction in import penetration. Anti-dumping measures could reduce it from around 30% to around 10%, allowing local producers to resume investment.

The company’s CFO, Rafael Japur, noted that the Brazilian federal government has recently taken a more proactive approach to addressing this issue by visiting companies, collecting data, and conducting more in-depth analysis to advance investigations.

Despite the current challenges, Gerdau remains positive about the outlook for 2026. Increased government awareness of the import issue, combined with expected growth in key industrial sectors, particularly automotive, and stability in the construction industry, could support demand conditions this year.

It should be recalled that in the winter of this year, Gerdau restarted a steel billet production plant in the state of Ceará (Brazil). The plant was shut down for reconstruction in May 2024. The company invested R200 million ($38 million) in it to improve efficiency and reduce environmental impact. The plant’s restart is part of Gerdau’s strategy to strengthen its position as a supplier of steel products in the north and northeast of the country, where local buyers are heavily dependent on imports.