Key Facts
- SLX slipped 1.01% the steel-producers ETF closed at US$108.50 on Thursday, August 13, 2026.
- CSN defied the downdraft its New York-traded ADR gained 3.41% to US$0.8997, the session’s standout steel mover.
- Ternium eased 1.11% the Mexico-focused producer’s New York shares settled at US$54.28.
- Gerdau dipped 0.62% its New York-listed shares closed at US$4.80, reflecting softer domestic construction demand.
- Brazil’s Selic is falling the central bank cut the benchmark rate to 14.00% on August 5, 2026, a fourth straight reduction.
- China remains the pressure point cheap steel imports continue to squeeze Latin American mill margins, keeping producers on tariff defence.
Today’s Focus
Latin American steel equities split on Thursday, August 13, 2026, with CSN Mineração’s ADR surging +3.41% while most peers fell. The broader steel-producers ETF, SLX, lost -1.01%, and Mexico’s Ternium dropped -1.11%.
The divergence reflects uneven exposure to Brazil’s easing cycle and Mexico’s construction slowdown. Brazil’s central bank has cut the Selic to 14.00%, aiming to revive credit-sensitive sectors like homebuilding and infrastructure.
China’s cheap steel exports remain the dominant structural threat. Latin American mills are pushing for stronger tariff barriers, but domestic demand has not rebounded enough to offset import pressure.
Investors should watch whether lower Brazilian rates translate into real steel orders, not just cheaper financing. Until construction activity picks up, mill pricing power stays limited.
What matters today. Brazil’s rate cuts are a tailwind, but Chinese imports and weak construction demand still cap upside for Latin American steel producers.
01 The session in one read
Latin American steel stocks traded in two directions on Thursday, August 13, 2026. CSN’s New York-traded ADR climbed +3.41%, while Gerdau, Ternium and the SLX steel ETF all closed lower.
The split highlights a market uncertain whether Brazil’s monetary easing will generate real steel demand before Chinese imports erode mill prices further. Mexico’s auto sector, a key Ternium customer, remains a bright spot but not bright enough to lift the whole complex.
The steel complex is caught between monetary easing in Brazil and relentless Chinese supply pressure. Lower Selic rates should eventually revive construction, but Thursday’s mixed board shows investors are not yet convinced.
The variable to watch is Brazil’s monthly construction activity data; a sustained uptick would validate the easing cycle and shift pricing power back to domestic mills.
02 The board
The SLX steel-producers ETF settled at US$108.50, down -1.01% on the session. Gerdau’s New York shares fell -0.62% to US$4.80, and Ternium lost -1.11% to US$54.28.
CSN ran against the tide, gaining +3.41% to US$0.8997. The move suggests some investors are positioning for a Brazilian construction recovery financed by cheaper credit after the Selic fell to 14.00%.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$108.50 | -1.01% |
| Gerdau | US$4.8 | -0.62% |
| CSN (ADR) | US$0.8997 | +3.41% |
| Ternium | US$54.28 | -1.11% |
Source: RT close, 2026-08-13. Where a commodity has no spot feed, an exchange-traded tracker or leading producer is shown as a labelled proxy.
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Latin America — Cross-Market Board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 167,100.95 | -0.23% | +21.85% | 167,491.07 | 168,310 | 167,142 | — |
| IPSA | 11,000.07 | +0.16% | — | 10,982.72 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 65,335.52 | -0.64% | +12.17% | 65,755.97 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 3,000,582 | +0.04% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,432.10 | +0.07% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 58,814.75 | -1.21% | — | — | — | — | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| EUR/BRL | 5.95 | +1.01% | -5.83% | 5.89 | 5.98 | 5.94 | — |
| USD/MXN | 17.06 | -0.24% | -8.58% | 17.10 | 17.08 | 17.01 | — |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| USD/COP | 3,140 | +0.03% | -22.04% | 3,139 | 3,141 | 3,105 | — |
| USD/PEN | 3.36 | -0.66% | -4.82% | 3.38 | 3.38 | 3.35 | — |
| USD/ARS | 1,493 | +0.10% | +12.96% | 1,491 | 1,494 | 1,480 | — |
| USD/UYU | 40.27 | +1.24% | +1.80% | 39.77 | 40.27 | 40.23 | — |
| USD/PYG | 5,939 | +1.68% | -19.54% | 5,841 | 5,939 | 5,925 | — |
| USD/BOB | 11.64 | -0.76% | +72.04% | 11.73 | 11.72 | 11.64 | — |
| USD/DOP | 58.34 | +1.25% | -3.44% | 57.62 | 58.34 | 58.04 | — |
| USD/CRC | 445.92 | +0.89% | -9.71% | 441.97 | 448.50 | 445.92 | — |
03 What moved it
Brazil’s central bank cut the Selic by 25 basis points to 14.00% on August 5, 2026, the fourth consecutive reduction. The easing is designed to revive credit-sensitive industries, including construction and homebuilding, which are core steel consumers.
Yet the transmission remains slow. Builders are still digesting high material costs, and Chinese steel continues to land at prices domestic mills struggle to match, keeping a ceiling on local prices.
In Mexico, Ternium faces softer construction demand and uncertainty over US trade policy. The company’s exposure to the auto sector provides some support, but not enough to offset the broader regional slowdown.
04 The Latin American read
For foreign investors, Latin American steel is a play on two diverging policy paths. Brazil is easing credit to stimulate demand; Mexico is waiting for clearer US trade rules and stronger industrial orders.
The Chinese import challenge is common to both. Without anti-dumping duties or safeguard tariffs, Latin American mills risk losing domestic market share to subsidised Chinese product.
Brazil’s real has weakened to around 5.16 per US dollar, which makes imported steel more expensive in local terms. That offers some natural protection, but not enough to restore pricing power.
05 The names to watch
CSN is the session’s outperformer, with its ADR up +3.41%. The company’s domestic iron ore and steel exposure makes it a direct beneficiary of any Brazilian construction recovery.
Gerdau, down -0.62%, has heavier exposure to North American long steel, where demand has softened. Ternium’s -1.11% decline reflects Mexico’s fragile construction market.
Usiminas, another Brazilian flat steel producer, remains a key name to monitor, though its shares were not among Thursday’s verified movers. The SLX ETF offers the broadest lens on global steel equities and fell -1.01%.
06 The outlook
Steel equities are likely to stay rangebound until Brazilian construction data shows a clear lift from lower Selic rates. Any sign of stronger demand would favour CSN and Gerdau over imported-product competitors.
Watch for further tariff announcements from Brasília or Mexico City. A tougher stance on Chinese steel would be the fastest catalyst for a sector-wide re-rating.
07 What to watch
- Brazil construction activity: A sustained rise would confirm that lower Selic rates are feeding real steel demand, not just cheaper financing.
- Chinese import volumes: Any increase in cheap Chinese steel would pressure domestic mill margins and likely trigger fresh anti-dumping action.
- Mexico auto output: Ternium’s earnings hinge on automotive steel demand; a slowdown in vehicle production would hit the stock.
- Tariff policy: Anti-dumping duties or safeguards in Brazil and Mexico would directly improve Latin American mills’ pricing power.
Frequently Asked Questions
Why did CSN rise while other steel stocks fell?
CSN’s ADR gained 3.41% on Thursday, likely because investors see it as a direct beneficiary of Brazil’s lower interest rates and any construction recovery.
What is the SLX ETF?
SLX is an exchange-traded fund that tracks steel producers globally. It closed at US$108.50 on August 13, 2026, down 1.01%.
How do Chinese imports affect Latin American steel?
Cheap Chinese steel undercuts local prices, squeezing mill margins and pushing domestic producers to seek tariff protection.
What does Brazil’s Selic cut mean for steel?
The Selic rate fell to 14.00% on August 5, 2026. Lower rates should gradually boost construction and credit demand for steel-intensive projects.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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