Brazilian integrated steelmaker Gerdau is likely to benefit from improving civil construction activity in Brazil, a report by Bradesco Corretora said.
Brazilian civil construction activity in August slightly grew to 49.2 points, from 47.8 points in August 2018, in a scale from zero to 100, in which values above 50 show growth, according to a report from local confederation of industries (CNI) said. Local civil construction activity in August also improved from 48.4 points in July 2019.
“We expect domestic long steel demand to increase between 4 and 5 percent in 2020,” the Bradesco Corretora report said.
The report also noted purchases of raw materials in the civil construction segment are expected to grow to 53.7 points in September 2019, from 52.6 points in August 2019.