By Paul Kiernan
BELO HORIZONTE, Brazil--Brazil's Gerdau SA (GGB, GGBR3.BR,
GGBR4.BR), the third-largest steel producer in the Americas, sees
demand for its products in the U.S. picking up next year and in
2015 as the economy gains traction, Chief Executive Andre Gerdau
Johannpeter said Wednesday.
The U.S. is Gerdau's second-most important market.
"There are still some difficulties in the U.S. this year,
because there are a lot of imports pressuring margins," Mr.
Johannpeter told reporters on the sidelines of a mining conference.
He said the company isn't too worried about the looming fight over
the U.S. borrowing limit, as "we think the government will find a
solution just like [previous] last times."
In Brazil, Mr. Johannpeter said Gerdau expects the apparent
consumption of steel to grow slightly faster next year than the
3%-3.5% growth forecast for 2013. The Brazilian currency, which has
been extremely volatile this year and has depreciated against the
dollar due to expectations that the U.S. Federal Reserve will start
tightening its monetary stimulus programs, still isn't favorable to
local steelmakers.
"The dollar has helped but it is not enough for the sector to be
more competitive," Mr. Johannpeter said. "We'd need the dollar
around BRL2.30 or BRL2.40 to start looking at exporting."
Brazil's real opened Wednesday around BRL2.2050 to the
dollar.
Write to Paul Kiernan at paul.kiernan@wsj.com
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