Latin America Steel: CSN Jumps 5.66% as China Tariffs Bite
Key Facts
- CSN ADRs jumped 5.66% to US$1.12 making the Brazilian flat-steel producer the standout gainer in Thursday’s Latin American session.
- The VanEck Steel ETF fell 0.44% to US$101.81 as global producers outside Latin America weighed on the exchange-traded fund that tracks steel companies worldwide.
- Gerdau’s New York shares rose 1.91% to US$4.81 reflecting investor appetite for Brazilian long-steel exposure despite fragile construction demand.
- Ternium gained 1.84% to US$55.30 extending a three-session rise even as soft Mexican automotive and construction markets cap the recovery.
- Brazil keeps a 25% tariff on steel imports above quotas under the current extension covering 19 steel products while anti-dumping duties hit several Chinese flat-steel categories.
- Brazilian steel imports fell 17.6% in the first half of 2026 to 2.9 million tonnes, according to Aço Brasil, but domestic consumption remains weak.
Today’s Focus
Latin American steel equities diverged on Thursday, October 1, 2026. Brazilian names CSN and Gerdau advanced, while the global steel-producers ETF slipped.
CSN’s New York-listed ADRs gained 5.66% to US$1.12. Gerdau rose 1.91% to US$4.81, and Ternium added 1.84% to US$55.30.
The VanEck Steel ETF fell 0.44% to US$101.81, a reminder that steel markets outside Latin America face their own pressures.
Tariff protection in Brazil and Mexico is helping domestic producers, yet weak construction and automotive demand prevents a stronger rally.
What matters today. Trade barriers are cushioning Latin American steelmakers from cheap Chinese imports, but the region’s own steel consumption is still falling.
01 The session in one read
Brazilian steel shares won the session on Thursday, October 1, 2026, while the broader global steel fund lost ground.
Investors rewarded companies that have tariff walls behind them, with CSN’s US-listed shares climbing 5.66% to US$1.12.
Gerdau and Ternium also rose, but the gains were modest compared with CSN’s jump, revealing a market that is selective rather than euphoric.
The session rewarded companies with direct exposure to Brazil’s trade defences. CSN’s outsized gain suggests investors are pricing in relief from anti-dumping duties on Chinese flat steel, even though Aço Brasil expects imports to remain above the long-term average. China still supplied half of Brazil’s steel imports through August, down from 64%, while Vietnam’s shipments rose more than fivefold. The variable to watch is whether weak domestic consumption eventually overwhelms the tariff advantage.
02 The board
The VanEck Steel ETF, the exchange-traded fund that tracks a basket of global steel producers, settled at US$101.81, down 0.44% on the day.
That decline came despite gains by two of its Latin American holdings: Gerdau finished at US$4.81, up 1.91%, and Ternium closed at US$55.30, up 1.84%.
CSN’s ADR was the clear outlier, surging 5.66% to end at US$1.12.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$101.81 | -0.44% |
| Gerdau | US$4.81 | +1.91% |
| CSN (ADR) | US$1.12 | +5.66% |
| Ternium | US$55.30 | +1.84% |
Source: RT close, 2026-10-01. 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 | 187,197.46 | +0.46% | +21.85% | 186,340.46 | 168,310 | 167,142 | — |
| IPSA | 10,908.18 | -0.56% | — | 10,969.49 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,828.60 | -0.60% | +12.17% | 64,214.36 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,758,840 | -2.15% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,530.05 | -0.75% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,831.84 | -0.13% | — | — | — | — | — |
| 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
Trade protection remains the dominant force behind Brazilian steel equities. Brazil maintains a 25% tariff on steel imports above quotas for 19 products under the current extension.
Brazil has also imposed anti-dumping duties on several Chinese steel products, including cold-rolled and coated flat steel, which directly benefits CSN’s product mix.
Aço Brasil data show rolled-steel imports fell 17.6% in the first half of 2026 to 2.9 million tonnes, yet domestic consumption remains weak.
China still supplied half of Brazil’s steel imports through August, down from 64% a year earlier, while Vietnam’s shipments increased more than fivefold.
04 The Latin American read
For foreign investors, the session illustrates a defensive trade rather than a growth story. Tariffs are slowing the flood of cheap Chinese steel, but they cannot generate demand.
Gerdau, the Brazilian long-steel producer tied to construction, rose only 1.91%, suggesting investors remain wary of a housing and infrastructure market that Aço Brasil expects to stay weak.
Ternium’s 1.84% advance to US$55.30 extended a three-session rise, yet the Mexican market remains pinned by soft automotive and construction activity.
Mexico applies tariffs of up to 50% on steel from countries without a free-trade agreement, plus a separate 25% steel tariff, but those walls have not sparked a demand recovery.
05 The names to watch
CSN is the most direct beneficiary of Brazil’s anti-dumping duties on Chinese flat steel, which explains the force of Thursday’s 5.66% move in its ADR.
Gerdau offers exposure to long-steel and construction; its 1.91% rise shows tentative support but no conviction that building activity is turning.
Ternium, a major producer across Mexico and Latin America, is tied to automotive sheet demand and remains hostage to sluggish car production.
The SLX ETF at US$101.81 provides a single-liquid proxy for global steel equity, but its 0.44% fall shows that Latin American tariff relief is not lifting the whole sector.
06 The outlook
The next test for Latin American steel is whether falling imports produce a pricing floor before domestic consumption deteriorates further.
Brazilian producers remain reliant on export markets and protectionist policy while domestic demand is weak.
Any sign that construction or automotive demand is stabilising would amplify the tariff-driven gains seen on Thursday.
07 What to watch
- Brazil vehicle output: A rebound in automotive sheet demand would directly lift CSN and Ternium, whose flat-steel products depend on car plants.
- Vietnam import flows into Brazil: Vietnamese steel shipments rose more than fivefold as Chinese volumes fell, testing whether Brazilian anti-dumping rules can be circumvented.
- Mexico’s construction permits: Ternium’s long-steel sales are tightly linked to Mexican building activity, which has stayed soft despite tariff protection.
- US Section 232 policy on Mexican steel: The United States keeps a 50% duty on Mexican steel, and any change would ripple through Ternium’s export volumes and margins.
Frequently Asked Questions
Why did CSN jump 5.66% on Thursday?
CSN is the main Brazilian beneficiary of anti-dumping duties on Chinese flat steel, and investors are pricing in a stronger competitive position in coated and cold-rolled products.
What does SLX tell me about Latin American steel?
The VanEck Steel ETF tracks global steel producers, including Gerdau and Ternium. It fell 0.44% to US$101.81 on Thursday despite Latin American gains, showing weakness elsewhere in the sector.
Are tariffs actually working in Brazil?
Imports are falling, with rolled-steel imports down 17.6% in the first half of 2026, but China still supplied half of all Brazilian steel imports through August and Vietnam is filling some of the gap.
Why isn’t Ternium rallying harder?
Ternium faces soft automotive and construction demand in Mexico, so its 1.84% rise to US$55.30 has capped upside even with tariffs of up to 50% on non-free-trade steel imports.
Market data: RT
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