Bloomberg reported that Latin America’s biggest steelmaker Gerdau SA said the gap between Brazilian steel production capacity and demand is widening.

Mr Andre Gerdau Johannpeter CEO of Gerdau told reporters that “Brazilian output capacity of 41.8 million tonnes is more than twice forecasted demand of 18.7 million tonnes this year. And capacity is expected to rise to 48.4 million tons in 2010.

He stated that “Overcapacity is a new scenario in Brazil.”

(Sourced from Bloomberg)