BNamericas reported that Brazilian steelmaker Gerdau is concerned about the potential de industrialization in the steel sector due to the loss of competitiveness in the production chain.
Mr André Gerdau Johannpeter CEO of Gerdau said that "The value of Brazil's currency and the high interest rates are important factors. But the main question is the sector's tax burden and the fiscal war being fought by the states, which creates an asymmetry in terms of competition."
He added that "We know there is a bill in the Brazilian senate that aims to equalize taxes paid by domestic steel producers and steel importers. But it's difficult to predict when it will be voted on. Steel importers take advantage of tax reductions while the domestic producer pays full taxes. It's important that we eliminate this huge distortion."
High power prices in the country are also affecting the competitiveness of the local producers.
Sourced from bnamericas.com