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Gerdau Plans to Further Raises Steel Prices in September

Steel News - Published on Mon, 10 Aug 2020

Image Source: Gerdau
Brazilian steelmaker Gerdau CEO Mr Gustavo Werneck in a call with analysts said that it raised steel prices in June & July by up to 8-10% despite the economic slowdown brought on during the coronavirus crisis and was planning to raise them again by 11% in September. He said “Brazil's residential construction sector remained active. We are very optimistic about the second half of the year. Part of the positive results in the construction segments are due to government incentives that should run out by the end of the year.”

Gerdau saw its net profit in Q2 decline 15 percent, year-on-year, to BRL 315 million (USD 59.4 million). Gerdau attributed the decreased net profit in Q2 to a weaker gross profit, which totaled BRL 718 million (USD 135.4 million) in Q2, 44 percent down, year-on-year. The company said net revenues in Q2 fell 14 percent YoY to BRL 8.74 billion (USD 1.6 billion). Adjusted EBITDA totaled BRL 1.3 billion, an increase of 12% in the 2Q20 compared to the 1Q20.

Crude steel output in Q2 diminished 29 percent YoY to 2.43 million tonne, due to Covid-19 and as a result of halts in output. Gerdau said steel sales volumes in Q2 dropped 20 percent YoY to 2.36 million tonne. Gerdau long steel shipments grew 10% in the 2Q20 compared to the 1Q20.

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Posted By : Yogender Pancholi on Mon, 10 Aug 2020
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