Steel Fund Gains 1.16% as Gerdau Slips 0.43% | Steel, Nov 2
Key Facts
- CSN, a Brazilian steelmaker, is the story: its New York shares closed at US$0.7219 (+0.94%), 20 sessions after a fall of 41.78%, and 65.9% below the 2.12 peak of 28 January.
- The steel fund rose, as a 1.16% gain took the SLX producers ETF to US$100.55, though it is still 11.5% below its 2 June high of 113.57.
- Gerdau and Ternium slipped: -0.43% to US$4.64 for Gerdau, a Brazilian steelmaker, and -1.19% to US$52.14 for Ternium, a Latin American steelmaker.
- Imports are the main cause: Brazil’s steel imports rose 19.8% in the third quarter from the second, and flat steel imports rose 33.8%.
- Brazil has hit back: five-year antidumping duties now cover Chinese cold-rolled and galvanised coil.
- The test comes next: third-quarter results from CSN, Usiminas (a Brazilian steelmaker) and Ternium will show whether protection is reaching profits.
Today’s Focus
Latin American steel ended Monday, 2 November 2026, pulled two ways. The global producers fund edged up, while Ternium and Gerdau slipped and CSN stayed pinned near its lowest level in a year.
The cause is a flood of cheap steel, mostly from China, arriving faster than local mills can sell their own. Brazil’s imports rose 19.8% in the third quarter against the second, according to Gerdau’s own earnings release.
Governments are answering with tariffs, quotas and antidumping duties (penalties on goods sold abroad below fair prices). Mexico faces a second problem, the US steel levy, which hurts its manufacturers.
What matters today. Protection is arriving, but until it shows up in company profits, Latin American steel shares will keep trading on fear of imports.
01 The session in one read
Think of a mill as a shop with a cheaper rival opening across the road. That is Latin American steel today, and Monday, 2 November 2026, showed it clearly.
The SLX fund, which holds steel producers worldwide, rose. The Latin American names did not follow it: Gerdau and Ternium fell, and CSN rose less than 1% after a collapse.
The lesson for outsiders is that the regional story is about local rules and local imports, not global steel prices.
Brazil’s mills are earning decent margins at home, yet investors are marking them down because imports keep growing and borrowing costs stay high. Duties should help over time, but a 20-session slide of 10.25% in Gerdau shows the market is not yet paying for that relief. The variable to watch is whether import volumes fall once the new duties start to bite.
02 The board
Ternium, Mexico’s biggest steelmaker, fell the most of the group. Gerdau, Brazil’s largest producer, slipped slightly, while CSN’s small gain came after a brutal run.
CSN has lost 20.67% over five sessions and 22.4% over 60 sessions. Its 12-month low close of 0.7152 came on 30 October, so the shares sit only 0.9% above that floor.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$100.55 | +1.16% |
| Gerdau | US$4.64 | -0.43% |
| CSN (ADR) | US$0.7219 | +0.94% |
| Ternium | US$52.14 | -1.19% |
Source: RT close, 2026-11-02. 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 | 167,921.80 | -0.75% | +19.56% | 169,186.42 | 178,526 | 175,157 | — |
| IPSA | 10,374.91 | +1.18% | — | 10,254.15 | 10,722 | 10,633 | — |
| IPC MEX | 69,779.20 | -0.01% | +12.74% | 69,787.41 | 70,008 | 69,383 | 49,372,306 |
| MERVAL | 2,848,945 | — | +12.65% | 2,859,051 | — | — | — |
| COLCAP | 2,490.92 | +0.04% | — | — | — | — | — |
| USD/BRL | 5.34 | -1.32% | -0.84% | 5.42 | 5.42 | 5.30 | — |
| EUR/BRL | 5.95 | +7.53% | -4.87% | 5.54 | 6.04 | 5.92 | — |
| USD/MXN | 18.69 | +0.62% | +1.45% | 18.57 | 18.69 | 18.54 | — |
| USD/CLP | 983.47 | -0.57% | +5.64% | 989.13 | 991.87 | 979.07 | — |
| USD/COP | 3,149 | +3.06% | -18.02% | 3,056 | 3,173 | 3,111 | — |
| USD/PEN | 3.45 | +0.17% | +3.85% | 3.44 | 3.45 | 3.44 | — |
| USD/ARS | 1,537 | -0.28% | +3.77% | 1,541 | 1,541 | 1,537 | — |
| USD/UYU | 40.21 | +3.57% | +2.29% | 38.83 | 40.21 | 40.08 | — |
| USD/PYG | 5,803 | +3.78% | -16.54% | 5,592 | 5,803 | 5,735 | — |
| USD/BOB | 11.97 | +4.93% | +77.92% | 11.41 | 11.97 | 11.82 | — |
| USD/DOP | 60.54 | +1.83% | -4.34% | 59.45 | 61.14 | 59.85 | — |
| USD/CRC | 451.24 | +2.13% | -7.80% | 441.83 | 451.40 | 450.04 | — |
| USD/GTQ | 7.64 | +3.23% | +2.18% | 7.40 | 7.64 | 7.64 | — |
03 Why it moved
First, and heaviest, imports. Gerdau’s third-quarter release shows Brazilian steel imports up 19.8% from the previous quarter, with flat steel (sheet and coil, used in cars and appliances) up 33.8%. Imports supplied 20.8% of the Brazilian market on a nine-month annualised basis. Confidence: high.
Second, expensive money at home. The same release says steel consumption is pressured by high inflation and interest rates, which slows construction and car buying. It also cites a seasonal slowdown in domestic demand. Confidence: high.
Third, the US steel levy on Mexico. Ternium says Section 232 tariffs keep hurting its Mexican manufacturing customers, even as demand recovers. Confidence: medium.
The usual drivers did not explain Monday. The dollar fund UUP slipped 0.14% and the US 10-year yield fell about 3 basis points to 4.89%, which normally helps emerging-market shares. The S&P 500 fell 0.51% and the VIX fear gauge rose 8.91%, and Gerdau and Ternium fell with them. The oil fund dropped 7.08%, and gold-tracking GLD rose 1.65%, a sign of caution rather than conviction.
CSN’s slide is far larger than anything in steel prices or these markets. Our best reading, with low confidence, is that investors are marking down the company itself, which has more debt and a more varied business than its peers. Its third-quarter results were not confirmed, and they are the evidence to wait for.
China’s factory data also came in firm. The S&P Global manufacturing PMI, a survey of purchasing managers where a reading above 50 means expansion, rose to 52 for October against 51.6 expected in the RT economic calendar and 52.1 in September, a supportive signal for demand for industrial inputs.
04 The trend behind it
The SLX fund is 11.5% below its 12-month high of 113.57, set on 2 June. It is also 32.6% above its low of 75.82 on 20 November 2025, so this is a pullback inside a recovery. It has fallen 8.6% over 60 sessions.
Gerdau tells a harsher story. It is 11.5% below its 20 October high of 5.24, and has lost 6.1% over 60 sessions, though it remains 42.3% above its March low of 3.26.
This is a continuation, not a new phase. The import pressure has built for quarters, and duties are only now arriving.
05 What it means for Latin America
In Brazil, mills gain from the new protection. Camex, the trade authority, approved five-year antidumping duties on Chinese cold-rolled and galvanised coil, after a 2024 petition by Usiminas. The duties should help domestic mills such as CSN.
Brazil’s carmakers and appliance makers, who buy that steel, may pay more. Gerdau still earned a 27.7% margin in Brazil, which it calls the highest in four years, and Brazil supplied 76% of its consolidated operating profit.
In Mexico, Ternium sees demand recovering as new pipeline projects add volume and some carmakers switch from Asian imports to local steel. Public infrastructure works should add support later, but US tariffs still hurt its customers.
For an investor in São Paulo or Mexico City, the choice is between protected domestic margins and import pressure. For a visitor, the consequence is dearer local goods, not cheaper ones.
06 The names to watch
Gerdau’s domestic sales in Brazil rose 5.9% in the third quarter, mostly flat steel, while shipments in Brazil were flat. That suggests the shares are cheap if duties hold.
Usiminas is the company that asked for the duties, so it is the clearest winner from them. CSN is the highest-risk name, with the weakest chart. Ternium is the best proxy for Mexican industry and carmaking.
Our archive adds a caution. After earlier falls as large as the SLX fund’s 4.4% over 20 sessions, it was higher 20 sessions later in 59 of 117 cases, or 50%, with a median of +0.5% and a worst case of -46.6%. Gerdau was higher in 45 of 93 comparable cases (48%), with a median of -0.6%. CSN rose in only 3 of 7, with a worst case of -45.5%. History is not a forecast.
07 What would end it
The levels are plain. For CSN, 0.72 is the floor and 2.12 the distant ceiling. For Gerdau, 3.26 is the deep support and 5.24 the resistance. For SLX, watch 113.57 above and 75.82 below.
The next catalysts are the third-quarter results of CSN, Usiminas and Ternium, where Ternium has guided to higher shipments and a better margin than the second quarter. We could not confirm their dates.
Does the pressure stop? Not soon. It eases only when monthly import figures turn down and Brazilian interest rates fall, and neither is certain.
08 What to watch
- Import volumes: Monthly Brazilian steel imports show whether the new duties on Chinese coil are working.
- Third-quarter results: CSN, Usiminas and Ternium reports will test margins and shipments against Gerdau’s strong Brazil quarter.
- US tariffs: Section 232 steel levies decide how much Mexican manufacturers can buy from Ternium.
- Brazilian interest rates: Lower rates would revive construction and car demand, the weak spot named by Gerdau.
Frequently Asked Questions
Why is CSN down so much?
Its New York shares fell 41.78% in 20 sessions, far more than steel prices moved. Our best reading, with low confidence, is that investors are marking down the company itself as import pressure bites.
Do Brazil’s new duties help steelmakers?
Yes. Antidumping duties on Chinese coil raise rivals’ costs. They last five years and should help domestic mills such as CSN.
What is SLX?
It is an exchange-traded fund, a basket of shares traded like a single stock, that holds steel producers worldwide. It is a proxy for the industry, not the price of steel itself.
How does the US affect Mexican steel?
US Section 232 tariffs, a levy on steel, hit Ternium’s Mexican manufacturing customers. Ternium also says imports of steel and steel-containing goods weigh on the home market.
Market data: The Rio Times
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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