In a recent conference in Rio Grande do Sul, Gustavo Werneck, CEO of the Gerdau Group, stated that the company’s $1.0 billion investment plan for 2025 depends on the Brazilian government addressing the increasing steel imports from China.
Werneck revealed that while authorities are open to dialogue, no definitive solution has been reached. He highlighted the challenges posed by Chinese steel entering Brazil at prices lower than the cost of iron ore production, despite a quota system imposing a 25 percent fee on imports exceeding limits. In 2024, Brazil imported 4.8 million metric tons of steel, accounting for over 20 percent of domestic sales.
The company will decide by the end of May whether to proceed with its investments in Brazil, depending on the government’s action.