U.S. steel demand to grow in Q4: Gerdau
The construction of data centers and investments in solar-related projects will support U.
S. steel demand in the fourth quarter and into 2026, Brazilian steel producer Gerdau said.
Gerdau also expects steel production to expand due to rising prices and stable scrap metal costs. Strong defensive measures continue to support the U.
S. market, the company said on Friday.
Section 232 tariffs in the United States currently impose 50 percent duties on steel and aluminum imports, which favors the company's domestic production.
Preliminary anti-dumping decisions regarding rebar imports have also helped to reduce, according to Gerdau, this will increase import volumes and stabilize local supplies.
Gerdau's revenue in North America increased by 11% in the third quarter due to increased sales in the United States. Revenue in the region was half of 18 billion reais (3.2 billion dollars) for the quarter.
The company's North American facilities include plants in Canada, Mexico, and the United States, the latter of which is the most reliable. Gerdau produces special and long-range products in the region.
Steel production in North America increased by 11.6% compared to the same period last year and amounted to 1.35 million tons.
Sales increased to 1.29 million tons compared to 1.17 million tons a year earlier. Sales of finished products increased 47% year-on-year to a record 76,000 tons in the third quarter.
The company's backlog in North America currently stands at about 70 days, which is higher than the historical average of 60 days.