Gerdau expects demand for steel in the US to grow in Q4

Brazilian steel producer Gerdau expects data center construction and renewable energy investments to support steel demand in the US during the fourth quarter and throughout 2026, Argus Media reports.

Gerdau also expects the steel spread to widen due to rising prices and stable scrap costs. The company believes that protective measures continue to support the US market.

The company’s revenue in North America for the third quarter grew by 11% year-on-year, mainly due to increased sales in the US, to $3.2 billion.

In July-September, Gerdau increased steel production in the region by 11.6% year-on-year to 1.35 million tons, while sales volumes rose to 1.29 million tons compared to 1.17 million tons in the same period last year.

The company’s North American operations include plants in Canada, Mexico, and the US. Gerdau produces specialty steel and long products in the region.

Overall, according to SteelOrbis, Gerdau increased its steel production by 6% year-on-year to 3.157 million tons in the third quarter, while sales of steel products rose by 9% to over 3 million tons. Brazil accounted for 50% of the group’s sales, North America for 40.9%, and South America (excluding Brazil) for 9.1%.

Earlier, Gerdau suspended planned investments in Brazil worth 2.1 billion reais ($400 million). The company cited weak market prospects and a surge in cheap Chinese steel imports. Instead, the steelmaker intended to focus on expanding its Midlothian plant in Texas (USA), increasing its annual capacity by 150,000 tons starting in 2026.