Brazilian Steel Shares Split as Import Barriers Hold
Key Facts
- Gerdau gained its New York shares rose 0.98% to US$5.15, lifted by Brazilian construction demand behind a 25% tariff shield.
- CSN gave back a two-day jump as the Brazilian flat-steel producer’s New York shares fell 7.97% to US$1.27, yet still ended the week about 4% higher.
- Ternium edged up shares added 0.50% to US$57.90 as Mexican demand recovery met tariff protection against Asian supply.
- The global steel benchmark slipped on the week even as it rose 0.31% to US$108.97 on Friday, leaving the VanEck Steel ETF 1.8% lower over five sessions.
- Tariffs remain the main wall Brazil protects domestic mills with a 25% above-quota tariff through June 2027 plus anti-dumping duties up to US$709.63 per tonne on Chinese flat steel.
- Imports are retreating Latin American steel imports fell 8.6% year-on-year in March 2026 to 2.5 million tonnes after record 2025 inflows.
Today’s Focus
Latin American steel traded a split session on Friday, September 11, 2026. Brazil’s Gerdau rose 0.98% to US$5.15 in New York as construction demand offered support, while flat-steel peer CSN fell 7.97% to US$1.27—a sharp drop that stood out among the region’s big producers.
Mexico’s Ternium added 0.50% to US$57.90, helped by a recovering domestic market and tariff walls that curb cheap Asian imports. The global VanEck Steel ETF closed at US$108.97, up 0.31%.
The policy backdrop stays the story. Brazil keeps a 25% above-quota tariff on steel imports through June 2027, plus anti-dumping duties from US$284.98 to US$709.63 per tonne on Chinese cold-rolled, coated, galvanised and pre-painted products. Mexico runs tariffs of up to 50% on 1,463 products from countries without trade agreements.
Construction and auto demand are steady but unspectacular across Brazil and Mexico, enough to hold volumes for domestic mills while imports retreat. Latin American steel imports fell 8.6% from a year earlier in March 2026, to 2.5 million tonnes, the most recent figure published by the regional association Alacero.
What matters today. Tariff protection and construction-led domestic demand are cushioning Latin American steel, but investor conviction remains selective, and CSN’s Friday reversal shows how quickly flat-steel gains can unwind.
01 The session in one read
Friday’s Latin American steel tape was a tale of two product lines: long steel gained through Gerdau, while flat steel stumbled via CSN. Gerdau closed at US$5.15, up 0.98%, as investors kept pricing in Brazilian construction and infrastructure demand.
CSN’s New York-listed shares sank 7.97% to US$1.27. The move looks larger than it is, because the stock had gained 11% over the previous two sessions and still closed the week up about 4%. Ternium offered the Mexican read: up 0.50% at US$57.90.
The tape rewarded Brazil’s long-steel construction story and punished flat steel, which is a reminder that tariff walls do not hand every mill the same pricing power.
Read the week rather than the day. CSN rose 7.26% on Wednesday and 3.76% on Thursday before Friday’s fall, so it still finished the week about 4% higher.
The variable to watch is any fresh trade action against Chinese flat steel, which would move CSN and Usiminas most.
02 The board
The global benchmark VanEck Steel ETF settled at US$108.97, a 0.31% advance that kept it firmly in the year’s winning camp. Gerdau and Ternium moved with it. Over the full week, though, the fund fell 1.8% while Gerdau rose 3.6%.
The spread between the session’s best and worst regional names is the story: Gerdau’s 0.98% gain against CSN’s 7.97% loss points to investor selectivity rather than a blanket steel bid.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$108.97 | +0.31% |
| Gerdau | US$5.15 | +0.98% |
| CSN (ADR) | US$1.27 | -7.97% |
| Ternium | US$57.90 | +0.50% |
Trade date 2026-09-11. Equity closes from RT. 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 | 187,206.89 | -0.56% | +21.85% | 188,268.59 | 168,310 | 167,142 | — |
| IPSA | 11,220.60 | -0.16% | — | 11,238.58 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,924.77 | -0.28% | +12.17% | 64,106.82 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 3,098,898 | -1.87% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,589.69 | -1.41% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,373.28 | — | — | — | — | — | — |
| 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
Tariff protection remains the dominant force. Brazil’s 25% above-quota tariff on steel imports runs through June 2027, and five-year anti-dumping duties on Chinese flat steel stretch from US$284.98 to US$709.63 per tonne depending on product and exporter.
Mexico’s tariff wall is even taller: duties of up to 50% on 1,463 products from countries without free-trade agreements, in force since January 1, 2026, plus a separate 25% levy on certain imports since August 2023.
Demand is constructive but not booming. Gerdau benefits from Brazilian long-steel use in construction, while Ternium rides recovering Mexican construction and manufacturing volumes. The weaker leg is flat steel, where CSN faces harder pricing even behind the tariff shield.
04 The Latin American read
Regionally, imports are retreating after 2025’s record inflow of low-priced steel. Latin American steel imports fell 8.6% year-on-year in March 2026 to 2.5 million tonnes, with the first quarter down 1.2% at 7.6 million tonnes.
Colombia has joined the protectionist wave with a 35% tariff on steel and metalworking imports from countries without trade agreements—the WTO maximum—naming China, Russia, Turkey and India. For foreign investors, the region is building a tariff-shielded bloc against Chinese steel.
05 The names to watch
Gerdau is the cleanest domestic construction play: a Brazilian long-steel producer whose local exposure makes it a prime beneficiary of tariff protection and infrastructure spending.
CSN and Usiminas are the flat-steel names, where anti-dumping duties on Chinese cold-rolled and galvanised products were meant to restore pricing power. Friday’s CSN drop came after a two-day rally rather than in place of one, so the margin question is still open.
Ternium anchors Mexico’s story of tariff defence plus volume recovery in construction and manufacturing, while the VanEck Steel ETF offers a global read-through at US$108.97.
06 The outlook
Watch whether any new trade action lands on Chinese flat steel exporters, which would be the clearest signal for CSN and Usiminas. The current Brazilian and Mexican tariff walls set the floor, but selective price moves show investors are still distinguishing long-steel strength from flat-steel fragility.
07 What to watch
- Federal Reserve decision, Wednesday: Consensus is a rise to 4.00%. Brazil’s central bank decides hours later and is expected to cut its Selic rate to 13.75%.
- Brazil construction data: Any upside in building activity could lift Gerdau further given its long-steel exposure.
- Chinese flat-steel import flows: Falling imports have helped CSN and Usiminas; a renewed surge would test tariff effectiveness.
- Mexico auto production: Ternium’s domestic volume depends on manufacturing and construction staying in recovery.
- Fresh anti-dumping complaints: Latin American mills may seek even higher duties on Chinese cold-rolled and galvanised steel.
Frequently Asked Questions
Why did Gerdau rise on Friday?
Gerdau gained because investors see Brazil’s 25% above-quota steel tariff and construction demand supporting its long-steel business.
Why did CSN fall so sharply?
CSN fell after rising 7.26% on Wednesday and 3.76% on Thursday. It still ended the week roughly 4% higher, so Friday was profit-taking rather than a verdict on the business.
What tariffs shield Latin American steel?
Brazil applies 25% above-quota tariffs through June 2027 and anti-dumping duties up to US$709.63 per tonne on Chinese flat steel; Mexico tariffs reach 50% on some steel imports.
What does the VanEck Steel ETF show?
The SLX ETF closed at US$108.97, up 0.31%, acting as the global steel-producer benchmark and confirming a mildly positive global tone.
Market data: RT
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