Gerdau Group CEO Gustavo Werneck announced in a meeting with analysts that the company will reduce its investment plan, originally scheduled for 2026, from 6 billion Brazilian reais (approximately US$1.12 billion) to 4.7 billion.

According to Werneck, the reduction in investment primarily involves suspending new steel production capacity in Brazil and shifting the focus to capacity expansion at its Midlothian plant in Texas. US import tariffs on steel products are changing the local steel market, paving the way for Gerdau to expand its local operations.

Werneck also noted that the Brazilian market outlook is weak due to unfair competition from subsidized Chinese steel, and that total Brazilian steel imports are already greater than Gerdau's production capacity. In Brazil, Gerdau will focus on expanding iron ore production and plans to increase scrap recycling at its Pindamonhangaba plant in São Paulo state.