Brazil’s steelmaker Gerdau expects a strong steel demand from the construction and infrastructure industries from North America, as a result of the $2.3tn infrastructure plan announced by president Joe Biden.
Moreover, Gerdau expects higher demand for its special steel division in the US following positive performances of the auto industry, heavy vehicles, distribution, and oil and gas sectors,. The company also expects higher steel shipment volumes to Brazil, Argentina, and Peru driven by increased demand from the construction industry, according to its Q1 earnings reports.
Gerdau’s crude steel production declined by 1pc to 3.15mn mt in the first quarter, from 3.18mn mt in Q1 2020. Steel shipments, on the other hand, increased by 15pc to 3.08mn mt in Q1, from 2.69mn mt in Q1 2020, due to the recovery in key consumer sectors in
the countries where Gerdau has operations.
Gerdau’s net profit jumped by 1,016pc to BRL2.47bn ($467.4mn) in Q1 2020, from BRL221mn in Q1 2020. The company’s net sales also rose by 77pc to BRL16.3bn in Q1, from BRL9.2bn in Q1 2020. The company’s adjusted Ebitda climbed by 267pc to BRL4.31bn in Q1, from BRL1.17bn in Q1 2020.
Output
The company’s crude steel production in Brazil increased by 4pc to 1.29mn mt in Q1, from 1.23mn mt in Q1 2020 due to higher shipments. Gerdau’s shipments of steel rose by 15pc to 1.28mn mt in Q1, from 1.11mn mt in Q1 2020. Gerdau North America’s business division saw a fall in its crude steel output of 7pc to 1.25mn mt in Q1, from 1.34mn mt in Q1 2020, and its steel shipments remained flat to 1.12mn mt year-on-year in Q1.
The company’s crude steel output in South America rose by 15pc to 163,00mt in Q1, from 142,000mt in Q1 2020, and its steel shipments rose by 47pc to 296,000 in Q1, from 202,000mt in Q1 2020.
However, the company’s crude steel production from its Special Steel division saw a reduction of 4pc to 445,000mt in Q1, from 462,000mt in Q1 2020, but its steel shipments rose by 29pc to 425,000mt in Q1, from 329,000mt in Q1 2020.
($1=BRL5.28)