Declining Activity at Gerdau Steel Plant Signals Supply Concerns Amid Rising US Demand

Introduction

The Gerdau Cartersville steel plant, located in Georgia, USA, is a prominent producer of semi-finished and finished rolled steel products, with an annual production capacity of 908,000 tonnes. This facility plays a critical role in serving key end-user sectors, including building and infrastructure, steel packaging, and transport.

Activity Trends Over Time

Recent satellite observations have indicated a significant decline in thermal activity at the plant’s Electric Arc Furnace (EAF). Over the last six months, the furnace’s operational output has dropped from 75% in November and December 2024 to 64% by April 2025. This trend is evident in the table below, which tracks the thermal activity over the last few months.

This consistent decrease of 6.94% in activity represents a concerning trend amidst increasing market demand for flat-rolled products, as highlighted by the report The US steel industry is heading for imports: demand for flat rolled products is growing, which notes an 11.9% rise in imports of rolled metal as of March 2025.

Implications for Steel Buyers and Market Analysts

The decline in activity at Gerdau’s Cartersville plant could lead to potential supply bottlenecks, especially as the US steel market grapples with rising demand for flat-rolled products. As noted in the aforementioned article, imports are surging, indicating a gap between domestic production and demand. Buyers may need to adjust their sourcing strategies to mitigate risks associated with potential supply shortages stemming from the plant’s reduced output.

Overall, the observed activity trends suggest that while demand is increasing, the current output limitations may create upward pressure on prices and further reliance on imports in the upcoming months. Market participants should remain vigilant in monitoring these developments to make informed purchasing decisions.