Brazilian Steel Giant Warns of ExistentialThreat from Subsidized Imports
Gustavo Werneck, CEO of Gerdau, one of Latin America'slargest steel producers, has called for urgent defensive measures to protectBrazil's steel industry from what he describes as "predatory and unfaircompetition." In recent statements, Werneck highlighted the fundamentalimbalance in global steel trade, particularly regarding competition fromChinese producers.
"The Brazilian industry competes with the Chinesestate, not with Chinese companies," Werneck stated, pointing to theextensive government support received by Chinese steel manufacturers. He warnedof dire consequences if this situation continues unaddressed: "We areexchanging Brazilian jobs for Chinese ones and condemning the future of ourindustry."
Systemic Concerns About State-BackedCompetition
Werneck's comments reflect a growing concern amongBrazilian steel executives about the nature of international competition in theindustry. By framing the issue as competition against the Chinese state ratherthan private companies, he highlights what many in the industry see as afundamental distortion in global steel markets.
The Gerdau CEO's statement suggests that Brazilian steelproducers, operating as private enterprises in a market economy, face an unevenplaying field when competing against companies that benefit from substantialgovernment subsidies, favorable financing, and other forms of state support.
This perspective aligns with recent comments from MarceloChara, president of Usiminas, another major Brazilian steel producer, whosimilarly warned about the threat posed by subsidized imports to thesustainability of Brazil's steel sector.
Strategic Importance of Steel Industry
Gerdau, founded in 1901, has grown from a single nailfactory into a global steel company with operations across the Americas. As oneof Brazil's oldest and largest industrial enterprises, the company plays asignificant role in the country's manufacturing ecosystem and broader economy.
Key Takeaways:
• Gustavo Werneck, CEO of Brazilian steel giant Gerdau, hascalled for urgent defensive measures to protect Brazil's steel industry fromwhat he describes as "predatory and unfair competition."
• Werneck emphasized that Brazilian companies areeffectively "competing with the Chinese state, not Chinesecompanies," highlighting the extensive government support received byChinese steel manufacturers.
• He warned that without addressing this imbalance,"we are exchanging Brazilian jobs for Chinese ones and condemning thefuture of our industry."
• Werneck's comments align with recent statements fromother Brazilian steel executives, including Marcelo Chara of Usiminas,suggesting a coordinated industry effort to raise awareness about the threat ofsubsidized imports.
• Gerdau, founded in 1901, has grown from a single nailfactory into a global steel company and is now the largest producer of longsteel in the Americas.
• Steel production is considered a strategic industry inBrazil, essential for economic development, industrial capability, and nationalsecurity.
