Gerdau SA has started selling steel goods produced at
its 770,000-tonne-per-year hot strip mill in Brazil, marking
its official entrance to the countrys flat steel
The first cargoes of
hot-rolled coil were shipped in October, but "sales volumes
will not be disclosed due to commercial issues," chief
executive officer André Gerdau Johannpeter said during a
call Oct. 31.
Johannpeter had said
at the beginning of August that the Porto Alegre, Brazil-based
companys hot-rolled coil sales volumes were estimated to
reach 150,000 to 160,000 tonnes in 2013.
The facility, in the
countrys southeastern Minas Gerais state, came on-stream
in August, after its start-up date was postponed several
The captive flat steel
production should improve Gerdaus earnings before
interest, taxes, depreciation and amortization (Ebitda) in
future financial periods, finance vice president André
Dias Pires said.
Ebitda for the
companys Brazilian steel division was 982 million reais
($448.6 million) in the third quarter of 2013, up from 691
million reais ($315.6 million) a year earlier.
plans to sell 4 million to 5 million tonnes of iron ore to
third parties in 2014, up from an estimated 700,000 to 750,000
tonnes this year, Pires said.
"The iron ore will be
sold to both Brazilian and foreign (market participants),
depending on market opportunities," he said.
The company is not
concerned about the lack of port availability to ship its iron
ore output in the short term, as it has "contracted port
capacity for the next two years," Pires said.
Gerdau has plans to
construct a private port terminal in Itaguaí, Rio de
Janeiro state, to export its iron ore surplus, but didnt
disclose any details.
Gerdaus iron ore output capacity will rise to 11.5
million tonnes per year by the end of 2013 from the current 7
million tonnes, of which 7 million to 7.5 million tonnes will
be consumed by the companys Açominas steel
A version of this
article was first published in AMM sister publication Steel