Latin American Steel Shares Rebound With the Broader Market
Key Facts
- The steel sector fund closed at US$108.37, up 2.05%, recovering the ground it lost in the previous session.
- Gerdau rose 2.20% to US$5.10 and Ternium 1.95% to US$58.09, while CSN’s New York listing fell 2.48% to US$1.18.
- No trade measure was announced on the day, so the move tracked a broad rebound across equities rather than any steel-specific news.
- Brazilian steel imports fell 17.6% in the first half to 2.9 million tonnes, while apparent consumption fell 5.3% to 12.9 million tonnes.
- Brazil’s over-quota tariff of 25% covers 19 product categories, with quotas renewed every four months through June 2027.
- Mexico applies duties of 5% to 50% across 1,463 tariff lines, in force since 1 January 2026 for countries without a free-trade agreement.
Today’s Focus
Latin American steel shares rose on Thursday and the reason was not steel. Every major miner and metal producer in the region gained on a broad rebound.
The sector fund closed at US$108.37, up 2.05%. Gerdau rose 2.20% to US$5.10 and Ternium 1.95% to US$58.09.
CSN’s New York listing was the exception, falling 2.48% to US$1.18. Its mining affiliate fell 5.59% in São Paulo on the same day.
No tariff, quota or anti-dumping decision was announced on 17 September. The trade architecture that shapes these companies did not change.
What changed was the market’s mood after the Federal Reserve decision. The S&P 500 rose 1.14%, the Nasdaq 1.69% and the volatility index fell 12.8%.
Steel is among the most cyclical sectors in any market. It rises faster than the index on a relief day and falls faster when sentiment turns.
What matters today. Steel shares rose with everything else rather than on their own news. The trade shield is real background, but it was not Thursday’s driver.
01 The session in one read
This was a sector moving with the market rather than against it. Steel names rose alongside copper, iron ore and zinc producers on the same session.
That matters for how the move should be read. A rally shared by every metal is about risk appetite, not about steel demand.
The sector fund has traded in a range through September without a clear trend. Thursday’s gain returned it to the upper part of that range.
The fifty-day average has been flat for weeks. Neither the tariff regime nor Chinese exports have produced a decisive move this quarter.
02 The board
| Instrument | Level | Session | Read |
|---|---|---|---|
| Steel fund (SLX) | US$108.37 | +2.05% | Recovers the previous session’s fall |
| Gerdau (GGB) | US$5.10 | +2.20% | Long steel, exposed to Brazilian construction |
| Ternium (TX) | US$58.09 | +1.95% | Flat steel, exposed to Mexican manufacturing |
| CSN (SID) | US$1.18 | -2.48% | The only decline among the majors |
| CSN Mineração (CMIN3) | R$5.74 (US$1.12) | -5.59% | Worst performer in the Ibovespa |
| S&P 500 | 7,637.76 | +1.14% | The session’s actual driver |
The CSN group was the only part of the sector that fell. Both the steel parent and the mining affiliate declined while every peer rose.
That is a company story rather than a sector one. It is also the only part of Thursday’s steel session that needs an explanation the market has not given.
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03 What moved it
The Federal Reserve raised rates on Wednesday and equities fell. On Thursday they rebounded hard, and cyclical shares led the recovery.
Steel is among the most cyclical sectors in any market. It rises faster than the index in a relief rally and falls faster in a selloff.
Every other metals producer in the region rose on the same session. Southern Copper gained 3.28%, Vale 2.41% and Nexa 6.95%.
There was no trade news to price. The tariff and anti-dumping measures now in force were all decided months ago.
04 The Latin American read
Brazil operates a quota system with a 25% tariff above the quota, covering 19 product categories. Allocations renew every four months and the regime runs to June 2027.
It also applies definitive anti-dumping duties on Chinese cold-rolled and coated flat products, approved in February 2026 for up to five years. Those measures cover flat steel, not wire rod.
Mexico takes a broader approach, with duties of 5% to 50% across 1,463 tariff lines for countries without a trade agreement. Steel and aluminium chapters sit in the higher part of that range.
The measures are working on the volumes. Brazilian steel imports fell 17.6% in the first half of 2026 to 2.9 million tonnes.
05 The names to watch
Gerdau is the long-steel producer and the closest read on Brazilian construction. Its shares rose 2.20% on Thursday.
Ternium makes flat steel in Mexico and sells into the automotive supply chain. It rose 1.95% and is the more direct play on the trade negotiations.
CSN is integrated from iron ore through to steel. That integration is why its shares and its mining affiliate moved together on Thursday.
Chinese exporters are the competitive pressure behind all three. Industry body Alacero estimated China at 45.4% of Latin American steel imports in its November 2025 assessment.
06 The outlook
The regional demand picture is soft rather than weak. Brazilian apparent consumption fell 5.3% in the first half to 12.9 million tonnes.
Import penetration rose to about 22.5% on those figures. That happened because consumption fell faster than imports, not because foreign steel gained ground.
Mexico’s position depends on the trade negotiations with Washington. The fourth round was postponed on Thursday and reset for 28 and 29 September.
For Brazil the variable is interest rates. Five consecutive Selic cuts should eventually reach construction, which is Gerdau’s core market.
That transmission takes quarters rather than weeks. Building activity responds to the cost of credit with a long lag, and the cycle only began this year.
Chinese export pressure is the counterweight to both. Mills with surplus capacity at home continue to place tonnes into open markets, and Latin America remains one of the most open.
07 What to watch
- The trade round on 28 and 29 September: Ternium’s Mexican flat-steel business is the most exposed name in the sector.
- Brazilian construction: Five Selic cuts should reach long steel demand, and Gerdau is the instrument that shows it.
- The CSN group: Both the steel parent and the mining affiliate fell while every peer rose.
- Chinese export volumes: Alacero put China at 45.4% of regional steel imports in its November 2025 estimate.
- Quota renewals: Brazil’s allocations reset every four months and the regime expires in June 2027.
Frequently Asked Questions
How did Latin American steel shares perform on 17 September 2026?
Gerdau rose 2.20% to US$5.10 and Ternium 1.95% to US$58.09. The SLX sector fund gained 2.05% to US$108.37.
Why did steel shares rise?
They rebounded with the broader equity market after the Federal Reserve’s rate decision. No steel-specific trade measure was announced that day.
What is Brazil’s steel tariff?
Brazil applies a 25% tariff above quota on 19 steel product categories, with allocations renewed every four months through June 2027.
What anti-dumping duties does Brazil apply?
Definitive duties of up to five years on Chinese cold-rolled and coated flat products, approved in February 2026. They cover flat steel rather than wire rod.
Are Brazilian steel imports rising?
No. Imports fell 17.6% in the first half of 2026 to 2.9 million tonnes, while apparent consumption fell 5.3% to 12.9 million tonnes.
What share of regional steel imports comes from China?
Industry body Alacero estimated 45.4% in its November 2025 assessment, or 13.2 million of 28.9 million tonnes. Its final 2025 figures revised total imports upward without restating the China share.
Sources: RT end-of-day series for SLX, GGB, TX and SID; Exame for the São Paulo session; Alacero, LATAM en Cifras 2025 and its April 2026 release; Argus on Brazil’s quota renewal; Instituto Aço Brasil via CNN Brasil on first-half import and consumption volumes; White & Case and Clark Hill on Mexico’s 2026 tariff schedule.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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