Latin America Steel Falls as China Pressure Persists
Key Facts
- SLX steel ETF closed at US$106.09 down 2.10% in the Friday, September 18, 2026 session, tracking the global steel complex lower.
- Gerdau’s New York shares fell 3.14% to US$4.94 even though Brazilian construction demand continues to support long steel such as rebar and wire rod.
- CSN’s American depositary receipts dropped 6.78% to US$1.1 making it the sharpest regional fall because flat steel leaves it most exposed to cheap Chinese imports.
- Ternium slipped 1.48% to US$57.23 as Mexican auto demand and nearshoring factory building provided only partial protection from the global downdraft.
- Brazil keeps a 25% tariff on above-quota imports of 19 steel products through June 2027 plus five-year anti-dumping duties on Chinese flat steel including cold-rolled, coated and galvanised products.
- Mexico applies tariffs of up to 50% on 1,463 tariff lines from countries without free-trade agreements a protection wall in force since January 1, 2026 that shields Ternium from some Chinese pressure.
Today’s Focus
Latin American steel equities fell on Friday, September 18, 2026, with CSN hit hardest as investors weighed the region’s reliance on tariffs against a weaker global steel complex. The SLX steel-producers ETF, a broad basket of steel companies, closed at US$106.09, down 2.10%.
CSN’s American depositary receipts tumbled 6.78% to US$1.1, the worst regional performer, because the Brazilian producer leans heavily on flat steel, the product category most directly threatened by cheap Chinese imports.
Gerdau outperformed its domestic rival, falling 3.14% to US$4.94, supported by Brazilian construction demand that feeds the long-steel segment. Ternium slipped a more modest 1.48% to US$57.23 on Mexican auto demand and nearshoring-related factory building.
The session showed tariff defence remains the market’s central story, not a demand boom. Brazil’s shield includes a 25% tariff on above-quota imports of 19 steel products running through June 2027, while Mexico’s protection wall reaches up to 50% on 1,463 tariff lines.
What matters today. The market is testing whether Latin America’s tariff walls can hold back Chinese steel without stronger domestic demand.
01 The session in one read
Latin American steel shares closed lower on Friday, September 18, 2026, as a retreat in the global steel complex overwhelmed the region’s tariff protections. The sharpest blow landed on CSN, whose American depositary receipts sank 6.78% to US$1.1.
Gerdau fell 3.14% to US$4.94 while Ternium gave up 1.48% to US$57.23. The divergence reflects a simple split: long-steel producers tied to construction held up better than flat-steel producers exposed to cheap Chinese imports.
The regional steel trade is leaning on policy protection rather than organic demand, which makes these equities vulnerable when the global steel complex weakens. Watch whether Brazilian construction activity accelerates enough to lift Gerdau beyond tariff defence, and whether Mexican auto output near 4 million units can keep Ternium insulated.
02 The board
The SLX steel-producers ETF, a fund that tracks steel companies globally, settled at US$106.09, down 2.10% for the session. That decline set the tone for Latin American names, where losses ran deeper for import-exposed producers.
CSN’s 6.78% drop to US$1.1 was the session’s clearest signal of Chinese import anxiety, while Gerdau’s smaller 3.14% fall to US$4.94 showed construction demand providing some cushion. Ternium closed at US$57.23, down 1.48%, proving the most resilient of the three.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$106.09 | -2.10% |
| Gerdau | US$4.94 | -3.14% |
| CSN (ADR) | US$1.1 | -6.78% |
| Ternium | US$57.23 | -1.48% |
Source: RT close, 2026-09-18. 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
-0.41%
185,229.17
-0.41%
63,375.93
-0.78%
11,381.18
+1.30%
3,021,926
-1.29%
2,548.22
+1.05%
60,023.65
-1.13%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 185,229.17 | -0.41% | +21.85% | 185,992.03 | 168,310 | 167,142 | — |
| IPSA | 11,381.18 | +1.30% | — | 11,235.60 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,375.93 | -0.78% | +12.17% | 63,873.32 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 3,021,926 | -1.29% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,548.22 | +1.05% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 60,023.65 | -1.13% | — | — | — | — | — |
| 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 | — |
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03 What moved it
Cheap Chinese steel remains the dominant competitive threat for Latin American mills, and Friday’s trade reflected how much each producer depends on trade defence. Brazil keeps a 25% tariff on above-quota imports of 19 steel products through June 2027.
Brazil also maintains five-year anti-dumping duties on Chinese flat steel, covering cold-rolled, coated, galvanised and pre-painted products. Mexico’s wall is even higher, with tariffs of up to 50% on 1,463 tariff lines from countries without free-trade agreements, in force since January 1, 2026.
04 The Latin American read
For foreign investors, the session distilled a regional hierarchy of risk. CSN sits closest to the import-pressure side because its business skews toward flat steel, the category where Chinese mills compete most aggressively.
Gerdau is better positioned because Brazilian construction demand supports long steel such as rebar and wire rod, a market where Chinese imports are less of a direct substitute. Usiminas, another Brazilian flat-steel producer, would face similar pressures to CSN.
Ternium benefits from Mexican auto demand and nearshoring-related factory building. The company has cited roughly 4% expected Mexican steel consumption growth in 2026, even as Mexican auto output remains roughly flat near 4 million units.
05 The names to watch
CSN is the clearest barometer of Chinese import pressure in Brazil. Its ADR price moves sharply when traders reassess the effectiveness of anti-dumping duties on flat steel.
Gerdau offers exposure to Brazilian construction and infrastructure, a domestic demand story that can diverge from global steel prices. Ternium is the Mexican proxy, blending auto demand with nearshoring investment that builds new factories across the north of the country.
06 The outlook
The regional steel trade remains a tariff-defence story before a demand story. Until Brazilian construction accelerates or Chinese import pressure fades, flat-steel producers like CSN will likely stay more volatile than long-steel names like Gerdau. Ternium’s resilience depends on whether Mexican auto demand and nearshoring factory building keep absorbing steel at current rates.
07 What to watch
- Brazil construction activity: Stronger public works or housing data would support Gerdau’s long-steel demand beyond tariff defence.
- Chinese flat-steel export pricing: Any increase in Chinese export offers directly pressures CSN and Usiminas margins in Brazil.
- Mexico auto output: A sustained move above roughly 4 million units would improve Ternium’s demand outlook materially.
- Trade policy enforcement: Any relaxation of Brazil’s 25% quota tariff or Mexico’s 50% wall would change the regional pricing floor.
Frequently Asked Questions
Why did CSN fall harder than Gerdau on Friday?
CSN is more tied to flat steel, the category most exposed to cheap Chinese imports; Gerdau’s long steel benefits from Brazilian construction demand.
What tariff protection does Brazil have on steel?
Brazil keeps a 25% tariff on above-quota imports of 19 steel products through June 2027, plus five-year anti-dumping duties on Chinese flat steel.
How does Mexico protect its steel market?
Mexico applies tariffs of up to 50% on 1,463 tariff lines from countries without free-trade agreements, including steel, in force since January 1, 2026.
What supports Ternium despite the global steel weakness?
Mexican auto demand and nearshoring-related factory building support Ternium, with the company citing about 4% expected Mexican steel consumption growth in 2026.
Market data: RT
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