GERDAU () CEO Gustavo Werneck said that May is the deadline for the federal government to present effective solutions to the national steel industry to face competition from China. In February, the executive had warned that if there was no rapid response from the state, the company could review its investment plans in the country. Gerdau expects to invest $ 6 billion in Brazil in 2025.
“We follow a very positive agenda. The government has been quite open in this debate, but we have not yet been able to find concrete solutions. Still, I am confident that by the end of May, the Federal Government – through the Ministry of Industry and Commerce – can adopt more robust trade defense mechanisms than we have today. If this does not happen, we will have to make short and medium term decisions to maintain the level of competitiveness,” Werneck said to the Werneck to Infomoney.
The executive participated this Wednesday (9) of the South Summit Brazilin Porto Alegre. During his talk, he said that the sector does not want any kind of government protection, but equality, because it is not possible to compete with countries where the government puts money, puts subsidy and does not make this competition fair.
The country imported 4.8 million tons of steel last year, according to data from industry entities. This represents more than 20% of internal sales.
“It is shocking to realize that today comes Chinese steel in Brazil at a lower price than what China itself pays for iron ore,” said the CEO, whose company has been operating for 35 years in the United States. Chinese imports of iron ore by 2024 reached 1.24 billion tons, a record.
Werneck also said that Gerdau has made efforts to maintain competitiveness against Chinese steel and, for the first time, has been able to offer the market alternatives to replace the Asian product.
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It is not only Gerdau that criticizes the presence of Chinese steel in Brazil. Earlier this year, the sector asked the Brazilian government to impose a 25% tariff on the country’s steel, in response to the impacts generated by protectionist measures adopted by US President Donald Trump.
The journalist traveled to Porto Alegre at the invitation of MB Startups.
