CSN Cuts Losses but Faces Hard Choices as Brazil’s Steel Market Feels the Strain

Brazilian steel giant CSN reduced its losses by almost 42% in the second quarter of 2025, reporting a net loss of R$130 million ($23 million). This result, drawn directly from the company’s official filings, surprised analysts who expected worse figures for the period.

The improvement came through smart financial moves, like reversing money set aside for old lawsuits and protecting its iron ore deals from big changes in currency prices. But while the headline number looks better, the deeper story is tougher.

CSN’s core business shrank: steel sales dropped nearly 10% from last year, down to 1 million tons, with a sharper fall in exports. Less steel sold means lower revenue, which came in at R$10.7 billion ($1.91 billion)—missing expectations.

Overseas demand has cooled due to lower prices and strong competition, especially from Asian producers, while local demand in Brazil improved a little after the rainy season but still faces pressure from imports and slow domestic industries.

Behind the numbers, CSN is walking a financial tightrope. The company’s earnings before debt costs (EBITDA) held steady at R$2.64 billion ($471 million) and its efficiency improved a bit (EBITDA margin 23.5%), but its high debts remain a worry.

Even after trimming some leverage, it still has a heavy load compared to others in the industry. Cash flow was a clear red flag, going negative by R$1.47 billion ($263 million) this quarter.

Big investments in new projects and the weight of Brazil’s high interest rates pushed cash out the door faster than it came in. To handle currency swings, the company held $1.1 billion in protective positions, which helped soften shocks from the volatile Brazilian real.

For readers outside Brazil, this story offers a real-world look at how a leading player in Latin America’s steel industry is responding to global oversupply, rising debt, and competitive exports from other regions.

CSN’s survival depends on sharp cost control, tough investment choices, and constant protection against financial risk.

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