Siderperú sees higher Q3 sales on strong steel demand

Gerdau's Peruvian unit registered a 7.2% increase in sales in the third quarter as demand rose for steel in the construction industry.

Siderperú posted a 30mn-sol (US$9mn) profit compared with 84mn soles a year earlier, when the company benefitted from a tax rebate, the Lima-based steelmaker said in a corporate filing. Sales totaled 418mn soles compared with 390mn soles a year ago.

Siderperú, which operates a 520,000t/y plant in the northern port of Chimbote, said sales costs rose 6.3% to 369mn soles in the period due to higher raw material costs.

Exports rose to 27.6mn soles through the first nine months from 19.8mn soles a year earlier, the company said. Peru mainly exports steel to Colombia, Ecuador and Bolivia. Siderperú, which has invested US$245mn in the mill since Gerdau acquired the company in 2006, can produce long and flat steel products at its plant in Áncash region.

The company competes in Peru with Aceros Arequipa, which last week reported a 32.8mn-sol Q3 profit, down 18.4%.

Steel producers are counting on demand to rise as President Martín Vizcarra accelerates an US$8bn reconstruction program after flooding and landslides sparked by El Niño last year.