Latin America Steel Falls: SLX, Gerdau, CSN, Ternium Drop
Key Facts
- —The steel fund SLX fell 0.95% to US$108.69 marking a down day for the sector as investors weighed tariff shields against weak construction demand.
- —Gerdau’s New York shares slid 2.34% to US$4.59 giving back part of Thursday’s strong gain on Friday, August 28, 2026.
- —CSN’s New York shares dropped 3.77% to US$1.02 the steepest fall among the region’s major listed steel names.
- —Ternium, the Luxembourg-domiciled group whose largest operating market is Mexico, fell 1.77% to US$54.84 even with Mexico’s layered duties on Chinese steel.
- —Brazil’s 25% above-quota tariff was renewed on May 29, 2026 yet Chinese material covers about 18% of Latin America’s steel consumption.
- —Mexico added provisional anti-dumping duties on hot-rolled steel from China and Vietnam on March 23, 2026 on top of duties of up to 50% on some Chinese goods.
Today’s Focus
Latin American steel shares fell across the board on Friday, August 28, 2026. The steel fund SLX lost 0.95% to US$108.69, with Gerdau down 2.34% to US$4.59, CSN off 3.77% to US$1.02 and Ternium 1.77% lower at US$54.84.
The pressure comes from a familiar dynamic: cheap Chinese steel keeps arriving in Latin America despite tariff walls. Regional steel lobby Alacero puts imports at 39.7% of the region’s apparent steel consumption, with China supplying 13.2 million tonnes, about 18% of the total.
Brazil shields its mills with a 25% tariff on above-quota imports, a regime extended in May for 12 months. Mexico stacks duties of up to 50% on some Chinese goods and provisional anti-dumping levies on hot-rolled steel from China and Vietnam.
What matters today. Tariffs are slowing but not stopping Chinese steel, and weak construction demand in Brazil is keeping a lid on domestic producers.
01 The session in one read
Steel shares in Brazil and Mexico ended lower on Friday, August 28, 2026, in a session dominated by a firmer dollar. Fed Chair Kevin Warsh delivered a hawkish Jackson Hole address, the dollar index rose about 0.5% and gold fell 3.1% to about US$4,456, pulling the wider commodity complex down with it.
The steel fund SLX fell 0.95% to US$108.69.
Gerdau’s New York shares dropped 2.34% to US$4.59, CSN lost 3.77% to US$1.02, and Ternium slipped 1.77% to US$54.84. The moves put the whole Latin American steel complex in the red for the session.
The sector’s decline on August 28 was driven mainly by dollar strength, layered on a structural squeeze between import pressure and soft construction demand. Brazil’s 25% above-quota tariff and Mexico’s layered duties have raised the cost of Chinese steel, but imports still cover more than a third of regional consumption.
Watch whether Brazil’s construction activity stabilises and whether Mexico turns its provisional anti-dumping duties into final measures.
02 The board
SLX, the steel fund that tracks a global basket including Latin American names, settled at US$108.69, a decline of 0.95%. That signals broad sector weakness, not merely a local story.
Among the region’s New York-traded names, CSN was the weakest at US$1.02, down 3.77%, while Gerdau followed at US$4.59, down 2.34%. Mexico’s Ternium traded at US$54.84, a 1.77% fall.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$108.69 | -0.95% |
| Gerdau | US$4.59 | -2.34% |
| CSN (New York) | US$1.02 | -3.77% |
| Ternium | US$54.84 | -1.77% |
Source: RT close, 2026-08-28. 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 | 205,079.25 | -0.17% | +21.85% | 205,430.33 | 168,310 | 167,142 | — |
| IPSA | 10,972.40 | +0.02% | — | 10,970.29 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 68,929.72 | +1.87% | +12.17% | 67,663.29 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,848,945 | — | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,518.36 | -1.87% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,664.64 | -0.09% | — | — | — | — | — |
| 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 structural overhang is Chinese steel, though Brazilian steel imports fell 17.6% in the first half of 2026 as tariff quotas and anti-dumping measures bit. Regional steel lobby Alacero estimates imports supply 39.7% of Latin American apparent steel consumption, of which Chinese material accounts for 13.2 million tonnes, about 18% of the regional total.
That keeps pressure on mill margins despite tariffs.
Policy defences have multiplied. Mexico added provisional anti-dumping duties on Chinese and Vietnamese hot-rolled steel in March, on top of duties of up to 50% on some Chinese goods and a 25% levy on steel from countries without free-trade agreements.
Chinese supply is easing at the source too: July crude steel output fell 9% year on year, the weakest July since 2017. Demand is also mixed.
Construction, the main buyer of long steel products used in building, remains soft in Brazil, leaving producers dependent on policy protection rather than end-market strength.
04 The Latin American read
Brazil applies a 25% tariff on steel imports above set quotas, a regime the trade chamber Gecex-Camex renewed on May 29, 2026. It kept the rate at 25% after rejecting a proposal to lift it to 35% on 21 tariff lines, while trimming permitted volumes on some products.
Mexico layers duties of up to 50% on some Chinese goods on top of a 25% levy on steel from countries without free-trade agreements.
Despite these walls, import penetration remains high. Domestic mills are fighting for market share even with protection, which limits how much pricing power the policy shield can deliver.
For foreign investors, the message is that Latin American steel is a policy-dependent trade. Tariffs matter, but so does the health of construction and manufacturing end-markets, and construction is doing no heavy lifting in Brazil right now.
05 The names to watch
Gerdau is the most exposed to Brazil’s construction cycle through its long-steel products, making its 2.34% drop a signal that investors see more softness ahead in civil building and infrastructure.
CSN brings together steel, mining and cement, but its 3.77% drop shows the market is focusing on the steel import squeeze rather than the diversified earnings mix.
Ternium, which operates across Mexico, Brazil and Argentina, is cushioned by Mexico’s manufacturing-linked flat steel demand. Yet its 1.77% fall suggests investors are not convinced the anti-dumping duties will quickly lift margins.
06 The outlook
The next test for the sector is whether Mexico converts its provisional anti-dumping duties on Chinese and Vietnamese hot-rolled steel into final measures. A stricter final determination could tighten supply and support domestic prices, while a softening would leave producers chasing volume against cheaper imports.
In Brazil, watch construction indicators more than any other demand signal, since long-steel demand from building is the missing piece. If construction remains weak, the 25% above-quota tariff alone may not protect earnings momentum for Gerdau and CSN.
07 What to watch
- Brazil construction demand: Soft construction is the core drag on long-steel producers like Gerdau; any pickup in infrastructure or civil works would lift the sector.
- Mexico final anti-dumping ruling: The provisional duties on Chinese and Vietnamese hot-rolled steel must be confirmed; a final decision shapes supply and pricing.
- Chinese export volumes to Latin America: If Chinese steel keeps arriving despite tariffs, regional producers will face continued price pressure.
- Brazil demand mix: Vehicle production is the bright spot for flat steel; any slowdown there would remove a key support while construction stays weak.
More: Brazil news, every day from The Rio Times.
Frequently Asked Questions
Why did Latin American steel shares fall on Friday, August 28, 2026?
Investors weighed persistent Chinese steel imports and weak construction demand against tariff shields. The steel fund SLX fell 0.95%, and the region’s New York-traded steel names dropped between 1.77% and 3.77%.
Which steel company fell the most?
CSN’s New York-traded shares fell 3.77% to US$1.02, the steepest drop among the region’s major listed steel names.
What tariffs protect Latin American steelmakers?
Brazil applies a 25% tariff on above-quota imports, extended in May for 12 months. Mexico layers duties of up to 50% on some Chinese goods plus provisional anti-dumping duties on hot-rolled steel from China and Vietnam.
How much Latin American steel comes from China?
Regional steel lobby Alacero estimates Chinese material accounted for 13.2 million tonnes in 2025, about 18% of Latin American apparent steel consumption, while imports of all origins cover 39.7%.
Market data: RT
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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