Latin America Steel Rises: Gerdau, CSN, Ternium Lead
Today’s Focus
Latin American steel shares rallied on Thursday, September 3, 2026, with CSN leading the gains. CSN’s New York-listed ADRs surged 7.69% to US$1.26, while Gerdau’s ADRs slipped 0.40% to US$4.95.
Mexico’s Ternium rose 1.95% to US$57.98, and the global steel ETF SLX settled at US$110.85, up 0.54%. The moves reflect investor confidence that tariff walls in Brazil and Mexico are keeping cheap Chinese steel at bay.
Demand drivers are mixed but improving. Ternium expects Mexican steel consumption to grow about 4% in 2026, with automotive output up around 6%.
The tariff shield is the story. Brazil’s above-quota tariff runs through June 2027, and Mexico’s levies reach 50% outside trade agreements.
What matters today. Tariff protection through mid-2027 is giving Latin American steelmakers pricing power against cheap Chinese supply, while Mexican demand recovery adds volume.
01 The session in one read
Latin American steel producers rallied on Thursday, September 3, 2026, as tariff walls kept cheap Chinese steel at bay. CSN’s New York-listed ADRs jumped 7.69% to US$1.26, the strongest move among major regional names.
The gains extended across the complex. Ternium rose 1.95% to US$57.98, the SLX steel ETF added 0.54% to US$110.85, and Gerdau’s ADRs slipped 0.40% to US$4.95.
The regional steel trade remains a tariff-protection story with a demand recovery overlay. Brazil’s 25% above-quota tariff and anti-dumping duties on Chinese flat products run through June 2027, giving Gerdau, CSN and Usiminas room to hold prices. Mexico’s levies of up to 50% support Ternium as it replaces Asian imports in automotive supply chains. Watch Chinese export pricing and any signs that quota volumes are being filled early, which could test the tariff shield before mid-2027.
02 The board
The price board showed a clear bid for Latin American steel equities. Gerdau’s Brazilian preferred shares (at about R$5.11 to the dollar) rose to R$25.42 (about US$4.98), up from R$24.15 (about US$4.73), confirming gains reached beyond New York.
Gerdau’s ADR slipped even as its local shares rallied on Brazilian demand, while CSN’s ADR led gains across the group. Ternium’s more modest advance reflects a Mexican recovery still rebuilding from a weak 2025.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$110.85 | +0.54% |
| Gerdau | US$4.95 | -0.40% |
| CSN (ADR) | US$1.26 | +7.69% |
| Ternium | US$57.98 | +1.95% |
Source: RT close, 2026-09-03. 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 | 185,188.13 | -0.01% | +21.85% | 185,205.09 | 168,310 | 167,142 | — |
| IPSA | 11,315.26 | -1.14% | — | 11,445.90 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 65,473.16 | +0.91% | +12.17% | 64,884.28 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 3,058,093 | -1.55% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,534.46 | +1.81% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,719.97 | +0.43% | — | — | — | — | — |
| 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 | — |
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03 What moved it
The core driver is policy. Brazil maintains a 25% tariff on above-quota imports of 19 steel products through June 2027, and five-year anti-dumping duties on Chinese cold-rolled, coated and hot-dip galvanised flat steel.
Mexico runs import levies of up to 50% on 1,463 products not covered by free-trade agreements, including steel, plus a separate 25% tariff from August 2023. These barriers are why investors believe Chinese supply will not swamp regional pricing at least until mid-2027.
04 The Latin American read
For Brazil, the tariff shield matters most for flat-steel producers like CSN and Usiminas, which face direct competition from Chinese coated and galvanised products. Gerdau, as a long-steel producer, is a primary beneficiary of domestic construction demand in Brazil.
Mexico’s story is more about recovery. Ternium expects steel consumption to grow about 4% in 2026 after a 10% drop in 2025, with automotive output up around 6%.
05 The names to watch
Gerdau is the regional bellwether for construction-linked long steel. Its local shares extended Thursday’s gains even as its ADR slipped 0.40% in dollar terms.
Ternium is the Mexican recovery play. The company says it is gaining market share by replacing Asia-imported steel at several automotive manufacturers and supplying steel for new gas pipeline projects, illustrating how trade barriers and reshoring benefit regional producers.
06 The outlook
The tariff shield runs through June 2027 in Brazil, giving investors a visible policy runway. Mexican demand growth of about 4% in 2026 adds volume to the pricing story.
The risk is that Chinese producers redirect volumes to other markets or that quota allocations fill early, testing the tariff mechanism. Until then, Latin American steel equities look supported by policy and recovering demand.
07 What to watch
- Chinese export pricing: If China cuts export prices aggressively, it could pressure regional mills even behind tariff walls.
- Brazil quota utilisation: How quickly the above-quota threshold is reached will signal whether import competition is intensifying.
- Mexican automotive production: Projected 6% growth in 2026 is a key volume driver for Ternium’s flat steel.
- US construction demand: As a major export market for Latin American steel, any slowdown would hurt regional producers.
Frequently Asked Questions
Why did CSN shares jump 7.69% on Thursday?
Investors rewarded CSN for its exposure to Brazil’s tariff-protected domestic steel market during the sector-wide rally.
How long do Brazil’s steel tariffs last?
Brazil’s 25% tariff on above-quota imports of 19 steel products runs through June 2027.
What is driving Ternium’s recovery?
Mexican steel consumption is expected to grow about 4% in 2026, with automotive production up around 6%.
Is cheap Chinese steel still a threat?
Yes, but Brazil’s anti-dumping duties and Mexico’s levies of up to 50% are keeping volumes contained at least until mid-2027.
Market data: RT
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