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[Ferro-Alloys.com] It is reported that Gerdau, the biggest producer of steel long product in Brazil, is expecting some recovery in steel demand in Brazil by 2016 due to weak economy activity and uncertain scenario in the short term. 

As alternative, Gerdau is betting on the growing market in the US.

André Gerdau Johannpeter, the company´s president, said in an event at New York Stock Exchange “situation in Brazil did not improve and even some figures have worsened in certain sectors, such as automotive, construction, machinery and equipment, what we expected for the second half may happen till next year.” 

He added that currently Brazil’s GDP in negative and the inflation is 8.5% with rising interest rates. However, despite the weak demand expected this year in Brazil, Gerdau has no plans for now to shut down blast furnaces, as rival Usiminas did.

On the other hand, USA market that represents 40% of Gerdau’s production capacity is much better. Johannpeter said today North America is the best market of the company, he mentioned that this shows the successful strategy of the company to seek geographic diversification of operations.

• [Editor:Yueleilei]