Steel Wrap: Gerdau Gains as CSN Slumps on Tariffs
Key Facts
- Gerdau rose 0.98% to US$5.15, making it the session’s standout as investors rewarded its leverage to protected Brazilian construction demand.
- CSN’s US-traded shares fell 7.97% to US$1.27, the sharpest move on the board and a sign that tariff relief has not fixed weak flat-steel fundamentals.
- The SLX steel-producers ETF added 0.31% to US$108.97, showing a global bid for steel shares even as Latin American names diverged.
- Ternium edged up 0.50% to US$57.90, supported by Mexican auto demand and nearshoring factory construction despite a softer regional tone.
- Brazil’s 25% tariff on above-quota imports stays in force through June 2027, keeping a floor under long-steel prices for domestic mills.
- Mexico finalized anti-dumping duties on hot-rolled steel from China and Vietnam on September 3, 2026, with rates near US$0.31 per kilogram.
Today’s Focus
Friday’s session split Latin American steel between the protected and the exposed. Gerdau added 0.98% to US$5.15 because its rebar and structural products sell into Brazilian construction, the segment helped most by import barriers.
CSN’s US-traded ADR tumbled 7.97% to US$1.27, the weakest name on the board, as investors punished its flat-steel exposure even with five-year anti-dumping duties on Chinese cold-rolled, coated, galvanised and pre-painted products.
Ternium rose 0.50% to US$57.90, steady rather than spectacular, on Mexican auto assembly and nearshoring factory construction. The wider SLX steel ETF gained 0.31% to US$108.97.
The common thread is trade defence, not rebounding demand. Brazil extends a 25% above-quota tariff through June 2027 and Mexico keeps duties up to 50% on non-free-trade partners, yet apparent regional consumption is barely growing.
What matters today. The market is paying for tariff protection, not for a steel demand recovery, so the gap between Gerdau’s resilience and CSN’s slide is the week’s clearest signal.
01 The session in one read
Latin American steel diverged on Friday, September 11, 2026, as tariff-protected long-steel producers outperformed flat-steel names weighed down by weak fundamentals.
Gerdau climbed 0.98% to US$5.15, while CSN’s New York shares sank 7.97% to US$1.27, and Ternium added a modest 0.50% to US$57.90.
Latin American steel shares are being priced on trade policy rather than order books. Brazil’s long-steel producers, led by Gerdau, benefit directly from a 25% above-quota tariff, while flat-steel names such as CSN suffer because import protection has not translated into stronger domestic pricing or volumes. The variable to watch is the next monthly Brazilian import penetration figure after first-half 2026 hit 22.5%.
02 The board
The broad SLX steel-producers ETF firmed 0.31% to US$108.97, suggesting global investors still see value in steel shares even as Latin American names split sharply.
The board’s real story is dispersion: US$5.15 for Gerdau versus US$1.27 for CSN, with Ternium’s US$57.90 sitting between them as the largest and most globally diversified of the three.
| 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% |
Source: RT close, 2026-09-11. 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 | 11,220.10 | -0.16% | — | 11,238.58 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,815.90 | -0.45% | +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 | -0.32% | — | — | — | — | — |
| 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
Brazil’s trade shield is doing the heavy lifting. The 25% tariff on above-quota imports runs through June 2027, and five-year anti-dumping duties on Chinese flat steel, including cold-rolled, coated, hot-dip galvanised and pre-painted products plus wire rod, remain in place.
Yet protection has not cured CSN’s ills. The stock’s 7.97% drop shows investors are unwilling to pay for a flat-steel recovery when first-half 2026 import penetration still hit 22.5% and Chinese mills supplied 45.4% of Latin America’s 2025 steel imports.
Mexico added its own barrier on September 3, 2026, with final anti-dumping duties on hot-rolled steel from China and Vietnam, including Chinese rates of US$0.3087 and US$0.3050 per kilogram depending on exporter group.
04 The Latin American read
For foreigners, Friday’s session is a reminder that Latin American steel is a policy trade more than a demand trade. Gerdau’s long-steel franchise benefits most from Brazilian construction, which is the segment import protection helps first.
Ternium’s steadier performance at US$57.90 reflects Mexican auto demand and nearshoring factory construction, even though the stock did not surge. Regional apparent rolled steel consumption grew only 0.1% year on year to 6.5 million tonnes in March 2026, while automotive output rose 1.1% in the first four months of 2026.
05 The names to watch
Gerdau at US$5.15 is the purest long-steel play on Brazilian construction tariffs and the clearest winner from current policy.
CSN at US$1.27 is the contrarian bet: deeply discounted but stuck with flat-steel exposure and an import penetration problem that tariffs have yet to reverse.
Ternium at US$57.90 is the diversified Mexican route, supported by auto assembly and nearshoring, with less single-country tariff risk than its Brazilian peers.
06 The outlook
Expect the split between protected long steel and struggling flat steel to persist as long as Brazilian construction outperforms industrial demand. Watch whether Mexico’s new hot-rolled duties redirect Chinese supply toward other Latin American markets, potentially testing Brazil’s anti-dumping regime. The next import penetration print for Brazil will be the clearest test of whether tariff protection is actually working.
07 What to watch
- Brazil import penetration: Next monthly figure after 22.5% in first-half 2026 will show if Chinese steel is finding new routes in.
- CSN’s ADR: A second consecutive sharp fall would suggest flat-steel tariff relief is not enough for investors.
- Mexican auto production: Ternium’s support rests on assembly volumes and nearshoring, so any slowdown there hits directly.
- SLX ETF momentum: Global steel appetite at US$108.97 will set the floor for Latin American names next week.
Frequently Asked Questions
Why did CSN fall so sharply?
CSN’s US-traded ADR dropped 7.97% to US$1.27 because its flat-steel products face weak demand and residual import pressure despite anti-dumping duties.
Why did Gerdau rise on the same day?
Gerdau added 0.98% to US$5.15 because it sells long steel into Brazilian construction, the segment most helped by the 25% above-quota import tariff.
What is Mexico doing about cheap steel?
Mexico finalized anti-dumping duties on hot-rolled steel from China and Vietnam on September 3, 2026, with Chinese rates around US$0.31 per kilogram.
Is steel demand growing in Latin America?
Barely. Apparent rolled steel consumption rose only 0.1% year on year to 6.5 million tonnes in March 2026, and automotive output grew just 1.1% in the first four months of 2026.
Market data: RT
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