Instead, the company is counting on growth in the US
Brazilian steel producer Gerdau has suspended planned investments in the country worth 2.1 billion reais ($400 million), according to Bloomberg.
The company cites weak market prospects and a surge in cheap Chinese steel imports.
“The biggest player in the Brazilian steel market right now is Chinese steel, which is subsidized and unfairly competitive,” said CEO Gustavo Vernick during Gerdau’s Investor Day in São Paulo.
Instead, Gerdau will focus on expanding its Midlothian plant in Texas (USA), increasing its annual capacity by 150,000 tons starting in 2026. The company expects its operations in the United States to benefit from the steel tariffs imposed by Donald Trump, as well as from high demand for renewable energy and the growth of data centers.
In Brazil, Gerdau will shift its focus to mineral extraction (to supply its operations and for sale) and scrap processing. Among the projects suspended in the country is a new rolling mill.
The company currently forecasts capital expenditures of R$4.7 billion for 2026 (R$6 billion for the current year).
Earlier, Gerdau warned that without decisive action to support the metallurgical industry, Brazil risks losing its domestic steel production, which could have negative consequences for the entire industrial supply chain. The share of imported steel in the domestic market is currently 22-25%, whereas previously this figure was 10%. Most of these imports come from China. In addition, the Brazilian steel industry is currently operating at 35% of its capacity.
