ADVFN - Advanced Financial Network.
HOME» NYSE » G » GGB Stock Price » GGB Stock News

Gerdau Share News

 Gerdau S.a. (brazil) Stock Price
GGB Stock Price
 Gerdau S.a. (brazil) Stock Chart
GGB Stock Chart
 Gerdau S.a. (brazil) Stock News
GGB Stock News
 Gerdau S.a. (brazil) Company Information
GGB Company Information
 Gerdau S.a. (brazil) Stock Trades
GGB Stock Trades

Brazil Steel Capacity Growth May Be Capped By Uncertainty

By Diana Kinch Of DOW JONES NEWSWIRES RIO DE JANEIRO -(Dow Jones)- Brazilian crude steel capacity is slated to grow by as much as 30 million metric tons a year by 2016, but unfavorable business conditions could thwart those intentions, an international steel consultant said Thursday. The amount of new capacity actually materializing could be anywhere between 10 million tons and 30 million tons, Hauke Moje, managing partner in Swiss-based Research & Consulting Group, or RCG, said in an interview. "Not all [of the projects] will materialize, due to a moderate domestic steel demand growth, a squeeze on profitability and a high tax burden in Brazil," Moje said. If the government wishes to encourage steel investments it "should provide a level playing field by adapting tax burdens to global standards to stimulate industry investments and create jobs at home," he said. An added burden are Brazil's interest rates, which are the highest by far among major economies. Late Wednesday, the Brazilian Central Bank late raised its key rate again, to 12.25% per year, with investors seeing more rates down the line. Much of the planned new steel capacity would produce steel slabs, an intermediate steel product which could end up being processed abroad due to insufficient local steel rolling capacity, Moje said. Further projects may be developed along the lines of Companhia Siderurgica do Atlantico, or CSA, the new joint venture between miner Vale SA (VALE, VALE5.BR) and Germany's biggest steelmaker ThyssenKrupp (TKA.XE), which will process the slabs in the U.S. and Germany. Companies from emerging markets including India are looking to buy steel slabs from South America, he said. Information from company plans indicates that most of the planned new crude steel capacity, about 24 million tons a year, would come from brand new plants, while around 6 million tons a year would come from expanding existing plants, according to Moje's studies. On top of that, there are plans to add more rolling capacity to turn the slabs into higher-value products aimed primarily at Brazil's domestic market, according to the consultant. Companies plan to add up to 14 million tons a year of rolling capacity, through a combination of new plants and expansions, he said. Brazil steel plants currently have the capacity to produce 47.4 million tons of crude steel a year, and actual output this year should reach 39.4 million tons, nearly 20% up on 2010, Brazilian Steel Institute IABr reported last week. Last year, imported steel accounted for 23% of sales in Brazil, it said. Brazil's mining giant Vale SA (VALE, VALE5.BR) is the main driver of the steel investments, while others with plans include Ternium (TX), Vallourec & Mannesmann, Usinas Siderurgicas de Minas Gerais (USIM5.BR), or Usiminas, and Companhia Siderurgica Nacional (SID, CSNA3.BR), or CSN. -By Diana Kinch, Dow Jones Newswires; 55-21-2586-6086; diana.kinch@dowjones.com

Stock News for Gerdau (GGB)
DateTimeHeadline
09/16/201421:50:32U.S. Steel Canada to Seek Creditor Protection
09/16/201421:20:07U.S. Steel Canada to Seek Creditor Protection -- Update
01/29/201415:51:23Brazil Stocks Close Down On Fed Tapering Move
12/17/201317:09:13ADR Shares End Lower as Fed Meeting Begins
12/09/201317:31:15ADR Shares End Mixed as Markets Digest Fed Officials' Speeches
11/27/201317:14:07ADR Shares End Slightly Higher After String of Economic Data
11/15/201307:07:30Two Sigma Investments 3Q 13F: Largest Eliminations
11/15/201307:07:27Two Sigma Investments 3Q 13F: Largest Eliminations -2-
11/15/201307:07:27Two Sigma Investments 3Q 13F: Largest Purchases
11/15/201307:07:27Two Sigma Investments 3Q 13F: Largest Sales
11/14/201307:19:29The Vanguard Group 3Q 13F: Largest Purchases -2-
11/14/201307:19:25The Vanguard Group 3Q 13F: Largest Sales
11/01/201316:22:34Brazil Shares Close Lower as Petrobras Gives Up Gains
10/18/201317:19:44ADR Shares End Mostly Higher On Upbeat China Data
10/17/201317:39:08ADR Shares End Higher a Day After U.S. Lawmakers Strike Deal
09/25/201314:42:33Brazil's Gerdau CEO Sees U.S. Steel Demand Stronger in 2014-15
09/23/201317:04:30ADR Shares End Mixed Following German Elections
09/06/201317:45:45Brazil's Bovespa Stock Index Ends Higher on OGX, Mild Inflation
04/09/201308:41:19Brazilian Companies Tap Overseas Debt Markets as BOJ Money Flows
03/21/201317:04:12ADR Shares End Lower as Cyprus Concerns Return to Fore

Gerdau and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad