Gerdau believes that the demand for steel in the United States remains stable
Global steel producer Gerdau expects U.
S. steel demand to remain strong, driven by data centers, solar energy, and infrastructure projects.
The U.
S. work-in-progress rate remains above the historical average, and demand continues to show positive momentum in North America, chief executive Gustavo Werneck said in the February 24 earnings report.
The company redirected investments to its operations in the United States after tariffs on steel imports increased by 50% from June 4, 2025. Gerdau increased its steel production in North America by 27% in the fourth quarter to 1.36 million tonnes, compared with 1.07 million tonnes a year earlier.
Data center construction and renewable energy projects contributed to sales growth in the fourth quarter, Gerdau said. Sales in the United States increased by 14% to 1.22 million tons in the fourth quarter compared to the same period a year earlier.
However, sales growth was limited as higher interest rates and trade uncertainty weighed on demand from the automotive sector, the company said.
Total sales in all markets increased by 5% to 2.9 million tons from 2.71 million tons a year earlier, driven by increased sales in the United States and increased exports.
Overview of Brazil and Mexico
Gerdau will suspend its investment projects in Mexico. according to Werneck, until the steel trade agreements between the United States and Mexico indicate a clear advantage in strengthening the company's position in the Mexican market.
Changes in Mexico's labor legislation, which gradually reduce the legal length of the working week until 2030, also make investments less attractive, executives say.
The company canceled plans to build a specialized steel mill in Mexico due to increased U.
S. tariffs on imported steel.
In Brazil, the firm will focus on the domestic market rather than increasing export supply, based on higher demand in Europe under the EU's carbon border regulatory framework, executives said. Despite the tightening of protective measures and anti-dumping duties, Gerdau has no plans to increase capacity or production in the short term.
Brazil's steel production in the fourth quarter fell 4.8% to 1.42 million tons from 1.49 million tons a year earlier. Sales increased by 2.4% due to increased export volumes. Sales of flat rolled products in the domestic market increased by 16% to 406,000 tons from 349,000 tons in the same period last year.