The high level of steel imports into Brazil could undermine the country\u2019s domestic industry, warned Gerdau\u2019s CEO in Brazil, Gustavo Werneck, on Friday (31). According to the executive, many companies are already operating at a loss and will not be able to sustain themselves for much longer if the federal government fails to act. Despite the challenges, prospects for next year remain positive.<\/p>\n
Werneck said steelmakers cannot operate \u201cin the red\u201d much longer and are losing momentum, putting the continuity of operations in Brazil at risk. \u201cIf there is no significant reduction in the inflow of imported products into Brazil, it will be impossible for domestic steelmakers to survive. They could disappear,\u201d he warned.<\/p>\n
For Gerdau, Werneck said that performance in North America remains the company\u2019s main growth driver, supported by resilient local demand.<\/p>\n
\u201cThe reduction of imports in North America \u2014 a direct result of the protective measures adopted during the Donald Trump administration \u2014 led our total volumes to grow both quarter over quarter and year over year, with an increase of more than 10%. The North America segment also reached a record share in our results, accounting for 65% of consolidated EBITDA during the period,\u201d he explained.<\/p>\n
In Brazil, however, the market remains heavily affected by the surge in imported steel. \u201cImport penetration remains above 6 million tonnes in 2025, equivalent to nearly 30% of domestic sales, underscoring the urgent need for effective trade defense measures to protect Brazil\u2019s steel industry and local jobs,\u201d he added.<\/p>\n
The high level of steel imports has already led Gerdau to lay off 1,500 workers in Brazil between January and July this year and to close plants in Bar\u00e3o de Cocais (Minas Gerais) and Mogi das Cruzes (S\u00e3o Paulo). The company has also announced a 22% reduction in planned investments for next year.<\/p>\n
Werneck noted that the company decided to announce its investment cuts early out of respect for stakeholders and to make clear its concerns about the future of operations in Brazil.<\/p>\n
\u201cIt makes no sense to maintain high levels of investment if we don\u2019t have a fair competitive environment. We\u2019re not trying to pressure the government \u2014 this is simply market reality. We only invest if there are clients,\u201d he said.<\/p>\n
Positive outlook for 2026<\/strong> Werneck said the ideal scenario would be one where competitive conditions are restored. \u201cAntidumping measures should reduce import levels from 30% to around 10%. That would bring back fair and balanced competition, allowing companies like ours to resume investment,\u201d he said.<\/p>\n Another factor driving optimism for 2026 is the expected growth of industrial sectors \u2014 particularly automotive \u2014 and stability in the construction industry.<\/p>\n Gerdau\u2019s third-quarter results<\/strong> Adjusted EBITDA reached R$ 2.7 billion, 6.9% higher than in the second quarter but 9.2% lower than in the same quarter of 2024. Steel sales totaled 3 million tonnes, up 9.3% from the previous quarter and 9% year on year. In Brazil, sales rose 16.6% from the second quarter, driven by higher exports and domestic demand.<\/p>\n
Despite current difficulties, Gerdau\u2019s outlook for 2026 remains positive. Werneck said the federal government has shown greater awareness of the issue and is taking more concrete steps to support the domestic industry. The company\u2019s CFO, Rafael Japur, shared this view: \u201cThere\u2019s been technical progress on the matter. The government has been visiting companies, collecting data, and conducting deeper analyses to advance investigations \u2014 something that wasn\u2019t happening before.\u201d<\/p>\n
In the third quarter, Gerdau reported an adjusted net profit of R$ 1.09 billion, up 26% from the previous quarter but down 23.9% from the same period in 2024.<\/p>\n