Brazilian long steel producer, Gerdau, says that the apparent steel consumption is expected to grow between 6-8% next year. Gerdau’s chief executive officer, Gustavo Werneck, said that the demand in residential construction is still strong and there should be more. “We are getting ready to meet short-term demand, since we have an important order backlog until the beginning of 2021. We’re expecting that this pace should continue throughout the year.” He also said that, due to the construction rebound, sales of long steel in the third quarter of the year were superior compared to the pre-pandemic period. According to the executive officer, despite having adjusted their production at the height of the Covid-19 crisis in March and April, Gerdau quickly resumed operations to fully meet the approaching demand. “In the coming months, there will be replenishment of stocks in the supply chain. This may be normalized by the first quarter of next year”, said Werneck. For the months ahead, demand for steel is expected to remain high in the construction and retail sector.
Source: Valor
*Translated by Ia Niani