Brazilian steel producer Gerdau’s CEO Gustavo Werneck has warned that the high level of steel imports arriving in Brazil could undermine the country’s domestic steel industry if effective trade defense measures are not implemented. He stated that several companies are already operating at a loss and may struggle to maintain operations without government intervention.
Imports threaten domestic steelmakers
According to local media reports, Mr. Werneck stated that several steelmakers are already operating at a loss and may struggle to sustain operations if imports remain at current levels. “If 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,” he warned. He added that import penetration is expected to exceed 6 million mt in 2025, equivalent to nearly 30 percent of domestic steel sales.
Antidumping measures seen as key solution
According to Gerdau, restoring competitive conditions would require reducing import penetration. Werneck stated that antidumping measures could lower import levels from around 30 percent, to about 10 percent, allowing domestic producers to resume investments. The company’s CFO Rafael Japur added that Brazil’s federal government has recently taken a more proactive approach toward addressing the issue: “There’s been technical progress on the matter. The government has been visiting companies, collecting data and conducting deeper analyses to advance investigations - something that wasn’t happening before.”
2026 outlook positive despite challenges
Despite the current challenges, Gerdau indicated that its outlook for 2026 remains positive. According to Werneck, improved government awareness of the import issue, combined with expected growth in key industrial sectors - particularly the automotive industry - and stability in the construction sector, could support demand conditions in the coming year.
