Brazil's Gerdau SA, the third-largest steel producer in the Americas, sees demand for its products in the US picking up next year and in 2015 as the economy gains traction, Chief Executive Andre Gerdau Johannpeter said Wednesday. The US is Gerdau's second-most important market.
"There are still some difficulties in the US this year, because there are a lot of imports pressuring margins," Johannpeter told reporters at a mining conference. He said the company isn't too worried about the looming fight over the US borrowing limit, as "we think the government will find a solution just like [previous] last times."
In Brazil, Johannpeter said Gerdau expects the apparent consumption of steel to grow slightly faster next year than the 3-3.5 percent growth forecast for 2013. The Brazilian currency, which has been extremely volatile this year and has depreciated against the dollar due to expectations that the US Federal Reserve will start tightening its monetary stimulus programs, still isn't favorable to local steelmakers.
"The dollar has helped but it is not enough for the sector to be more competitive," Mr. Johannpeter said. "We'd need the dollar around BRL2.30 or BRL2.40 to start looking at exporting."