Gerdau ADR Jumps 4.2% as Brazil Steel Shares Rally | Steel Report, Oct 2
Key Facts
- CSN leads its New York-listed ADR rose 3.57% to US$1.16 on Friday, October 2, extending its position as the most China-sensitive Brazilian producer.
- Gerdau follows with a 4.16% gain to US$5.01 as construction demand supports Brazil’s long-steel specialist.
- Ternium lags up 2.37% to US$56.61 because Mexican steel exports face US tariffs.
- Steel ETF steadies the global VanEck Steel ETF closed at US$103.53, a 1.69% advance.
- Import pressure persists China supplied 45.4% of Latin America’s steel imports in 2025.
- Brazil tariff wall stands a 25% tariff on steel imports above quota across 19 product categories runs through June 2027.
Today’s Focus
Latin American steel equities advanced on Friday, October 2, with Brazilian ADRs outperforming Mexico’s Ternium. The VanEck Steel ETF rose 1.69% to US$103.53.
The moves reflect a market rewarding Brazilian producers for tariff protection and construction demand, even as cheap Chinese imports keep pressure on flat-steel pricing. Gerdau added 4.16% to US$5.01.
CSN climbed 3.57% to US$1.16, the strongest Brazilian gain, because its flat-steel exposure is precisely where anti-dumping duties and quota tariffs bite hardest on Chinese supply.
Ternium advanced 2.37% to US$56.61, but its upside is limited by US tariffs on Mexican steel.
What matters today. The Brazilian tariff wall is helping domestic producers hold prices, while Mexican steel remains hostage to US trade policy.
01 The session in one read
Latin American steel equities rose on Friday, October 2, led by Brazilian flat-steel producer CSN, whose New York-listed ADR gained 3.57% to US$1.16.
Gerdau, the long-steel specialist more tied to Brazilian construction, climbed 4.16% to US$5.01, while Mexico’s Ternium advanced 2.37% to US$56.61.
The global VanEck Steel ETF finished at US$103.53, up 1.69%, suggesting the regional move was stronger than the broad sector trend.
Friday’s advance in Brazilian steel ADRs signals that investors are treating the 25% quota tariff and anti-dumping duties as a durable earnings floor for CSN, Gerdau and Usiminas. But the protection has not stopped imports: cheap imports still reach the region, so the rally rests on tariff enforcement staying credible. The variable to watch is whether imports from China keep rising.
02 The board
The price board shows a clear divide: Brazil’s tariff-protected producers outperformed Mexico’s export-exposed Ternium.
Gerdau’s 4.16% rise to US$5.01 was the sharpest in percentage terms, which suggests investors are pricing in resilient construction demand rather than recovery in industrial flat-steel customers.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$103.53 | +1.69% |
| Gerdau | US$5.01 | +4.16% |
| CSN (ADR) | US$1.16 | +3.57% |
| Ternium | US$56.61 | +2.37% |
Source: RT close, 2026-10-02. Where a commodity has no spot feed, an exchange-traded tracker or leading producer is shown as a labelled proxy.
Live Market IntelligenceThe live market board
Rio Times · Live Market Intelligence
Latin America — Cross-Market Board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 192,114.55 | +2.63% | +21.85% | 187,197.46 | 168,310 | 167,142 | — |
| IPSA | 10,916.59 | +0.08% | — | 10,908.18 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,712.24 | -0.18% | +12.17% | 63,828.60 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,767,663 | +0.32% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,515.02 | -0.59% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,751.67 | +0.18% | — | — | — | — | — |
| 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 | — |
Live Company IntelligenceGerdau S.A — the full investor dossier
Valuation & profitability
Price & risk
$16.6652-wk high
$26.44
Revenue trend · 6y
Ownership
Dividend
03 What moved it
Brazil’s tariff regime is the clear driver. The country maintains a 25% tariff on steel imports above quota across 19 product categories through June 2027, plus anti-dumping penalties on Chinese cold-rolled, coated and other flat-steel products.
CSN is most exposed to flat steel, sheet used by carmakers and appliance manufacturers, where Chinese competition has been most intense, so its 3.57% move reflects investors rewarding that protection.
Even so, protection has not stopped foreign supply: China supplied 45.4% of Latin America’s steel imports last year.
Large Chinese exports keep a ceiling on Latin American steel prices.
04 The Latin American read
For foreign investors, Brazil’s steel trade is a story of policy support versus import pressure.
That means the equity gains depend on tariffs holding against imports.
Mexico’s Ternium faces a different problem: US tariffs on Mexican steel.
Ternium’s equity performance will track cross-border trade policy more than domestic demand.
05 The names to watch
Gerdau looks most insulated by construction demand for long steel, while Usiminas and CSN depend more on Brazilian automotive and appliance plants.
CSN is the highest-beta way to bet on tariff enforcement against Chinese flat steel, which explains why its ADR leads the group on Friday.
Ternium is the most vulnerable to US trade policy, since US tariffs on Mexican steel directly affect its cross-border sales.
06 The outlook
The market is rewarding Brazilian producers for a tariff wall that is already in place and running through June 2027, but the question for the next quarter is whether demand declines faster than prices can rise.
If Chinese exports to Latin America accelerate, pressure on flat-steel prices will intensify.
For Ternium, the path depends on Washington more than Mexico City.
07 What to watch
- Brazil tariff enforcement: Whether quota tariffs and anti-dumping duties keep imports in check.
- Chinese export volumes: Rising exports would raise the incentive to ship surplus steel to Latin America.
- US-Mexico tariff talks: US tariffs on Mexican steel are the biggest swing factor for Ternium’s equity.
- Ternium: Any change in the US tariff on Mexican steel would move the stock first.
Why did CSN outperform Gerdau and Ternium on Friday?
CSN is most exposed to flat steel used by carmakers and appliance manufacturers, where Chinese competition is fiercest, so investors rewarded its tariff protection with a 3.57% ADR gain.
Does Brazil’s 25% tariff stop Chinese imports?
No. China supplied 45.4% of Latin America’s steel imports in 2025, so imports remain a pressure on regional producers.
What is the main risk for Ternium?
US tariffs on Mexican steel, which directly affect Ternium’s cross-border sales and caps its equity upside.
What does the SLX ETF tell investors?
The VanEck Steel ETF rose 1.69% to US$103.53, and because it holds global producers, Latin America’s outperformance shows region-specific drivers at work.
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
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.
Read More from The Rio Times