According to Andre Gerdau Johannpeter, chairman of the Gerdau Group, as reported by the Brazilian press, the downtime of the solid industry is 35 percent, which poses risks to its viability. He noted that the ideal bandwidth range would be from 15 to 20 percent.
John Peter identified key factors contributing to these problems, including increased steel imports at lower prices, lower domestic demand for steel products, geopolitical conflicts, commercial disputes, and prevailing uncertainties. MT of steel is produced annually, accounting for 10 percent of domestic consumption. Currently, imports have increased to 6.3 million. Tons per year, currently accounting for 22 percent of domestic consumption, which has led to lower prices, lower domestic demand, and higher levels of unsold inventory.
he indicated that in the coming weeks it will be important to assess whether the actions of government authorities related to foreign trade will meet the expectations of the Brazilian steel industry.
He also acknowledged that stakeholders in the local industry have different perspectives, with steel producers advocating stricter measures against imports, while steel consumers support access to lower steel prices.
