During its quarterly conference call Thursday, Brazil-based steelmaker Gerdau's leading executives said that the company remains cautious on the world outlook but still sees steel demand growing in 2012. However, current market conditions warrant investments, rather than acquisitions, and as such Gerdau is working on ways in which to develop its iron ore assets in Brazil's Minas Gerais state.
Gerdau is seeking a partner to further develop the assets and has already been approached by steelmakers, traders and financial executives interested in partnering with Gerdau for the investments. Raw material costs burdened Gerdau's earnings in Q3, but in 2012, the company plans to reach full iron ore self-sufficiency for its Brazilian operations.