Brazilian integrated steelmaker Gerdau and ArcelorMittal Brazil are optimistic about the improving prospects for the local civil construction sector, a media report from Valor said on Wednesday.
Both companies said consultations to buy steel from real estate developers rose in the first few months of the year.
“The market recovery should happen before we expected,” said Henrique Almeida, VP long steel for ArcelorMittal Brazil. “Client prospecting for our sales channels are stronger in H1 (as compared to H1 2018).”
Gerdau is also seeing increased quotes for steel products, said executive director Marcos Faraco.
“We see improving indicators for future demand, like weaker inventory in real estate, and fewer vacant homes for rent in cities like São Paulo. For that reason, we believe the (civil) construction segment will improve along H2,” Faraco said.