Global steelmaker Gerdau expects steel demand to remain strong in the US, underpinned by data centers, solar energy and infrastructure projects.
Backlog levels remain above the historical average in the US and demand continues to show positive momentum in North America, chief executive Gustavo Werneck said on an earnings call on 24 February.
The company has redirected investments to its US operations following the higher 50pc tariffs on imported steel from 4 June 2025. Gerdau raised its fourth-quarter crude steel production in North America by 27pc to 1.36mn metric tonnes (t), up from 1.07mn t a year earlier.
Data center construction and renewable energy projects supported higher sales in the fourth quarter, Gerdau said. Sales in the US increased by 14pc to 1.22mn t in the fourth quarter from the same period a year earlier.
Still, the sales increase was limited because higher interest rates and trade uncertainties weighed on demand from the automotive sector, the company said.
Total sales across all markets rose by 5pc to 2.9mn t from 2.71mn t a year earlier, supported by a hike in sales in the US and higher export levels, it said.
Brazil, Mexico overview
Gerdau will keep its investment projects in Mexico on hold until steel trade agreements between the US and Mexico point to a clearer advantage in strengthening its position in the Mexican market, Werneck said.
Changes to Mexico's labor legislation, which gradually reduce the statutory workweek through 2030, are also making investments less attractive, executives said.
The company cancelled plans for a specialty steel mill in Mexico because of the US tariff increases on imported steel.
In Brazil the firm will focus on the domestic market rather than increase export offers based on stronger European demand under the EU's Carbon Border Adjustment Mechanism, executives said. Despite stricter safeguard measures and anti-dumping duties, Gerdau has no plans to increase capacity or production in the short term.
Crude steel production in Brazil fell by 4.8pc to 1.42mn t in the fourth quarter, down from 1.49mn t a year earlier. Sales increased by 2.4pc because of higher export levels. Flat steel domestic sales rose by 16pc to 406,000t from 349,000t in the same period in the previous year.
