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Gerdau Upbeat on Steel Prospects in Latin America

Steel News - Published on Mon, 24 Feb 2020

Image Source: Gerdau
Brazil’s largest steelmaker Gerdau plans to increase investments through 2021. After investing BRL 1.75 billion (USD 406 million) in 2019, the company projects BRL 2.60 billion in 2020 and BRL 2.64 billion in 2021. Gerdau's chairman and CEO Mr Gustavo Werneck da Cunha during the company’s fourth quarter earnings call said “We have a positive view for our operations looking ahead. In Brazil the construction sector is already on an upward trajectory and infrastructure projects are likely to gain traction in the second half. In the US our forecasts are positive, mainly due to a strong labor market and interest rates persisting at low levels. GDP in Peru is likely to recover this year anchored by the construction side and in Argentina I expect the government will adopt some measures to fuel the economy and mitigate the effects of recession.”

Gerdau is projecting GDP expansion of 3.8% this year in Peru and 3.6% in Colombia, but a contraction of 1.3% in Argentina. It forecasts demand for steel in South and Central America of 45.5 million tonnes, compared with 43.8 million tonnes in 2019.

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Posted By : Yogender Pancholi on Mon, 24 Feb 2020
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