Steel Fund Falls 1.35% as Brazil’s CSN Hits 12-Month Low | Steel, Nov 3
Key Facts
- The steel ETF closed at its lowest in at least three months, falling -1.35% on Tuesday, 3 November 2026, to US$99.19, which is 12.7% below its 2 June peak of 113.57.
- CSN’s New York shares closed at their lowest in 12 months, at US$0.7138 after a move of -0.86%, and are down 41.97% in 20 sessions and 66.3% below their 28 January high.
- Gerdau was the one bright spot, rising +0.43% to US$4.66 in New York, yet still 11.1% below its 20 October high of 5.24.
- Ternium slipped -0.94% to US$51.65, even though it guides for Q4 adjusted EBITDA (operating profit) broadly in line with Q3, because US steel tariffs and weak Mexican demand still weigh.
- Cheap Chinese steel is the main pressure on Brazil, where rolled-steel imports rose by more than 20% in 2025 and China supplied 64% of the total.
- Wider markets did not explain the fall: the S&P 500 rose 0.36% while steel stocks dropped, so the cause lies in the industry and in each company.
Today’s Focus
The world’s steel-producer shares have slid to their lowest close in at least three months, and Latin America’s names are feeling it unevenly. The steel-producers ETF (a fund holding steelmakers’ shares) fell -1.35% on Tuesday, 3 November 2026, while the broad US stock market rose.
The sharpest pain was in Brazil’s CSN, whose New York shares hit a 12-month low. Gerdau, the Brazilian group with big US operations, edged up, and Mexico’s Ternium gave back a little.
The common thread is a flood of cheap Chinese steel and the trade walls governments are building against it. Those walls help some companies more than others, and that is why the stocks diverged.
What matters today. Steel stocks are falling for industry reasons, not because markets panicked, and the gap between winners and losers depends on who trade protection actually shields.
01 The session in one read
Steel had a poor Tuesday, 3 November 2026, in an otherwise decent market. The steel-producers ETF closed at its lowest in at least three months, and it is 5.57% lower than it was 20 sessions ago.
The fall now stretches back further. Over 60 sessions the fund is down 9.9%, so this is a slow grind lower rather than one bad day.
For a foreign investor the lesson is that steel shares are trading on trade policy and Chinese export prices more than on global growth.
The weight of evidence says this is a sector problem: imports, tariffs and soft demand, rather than a general sell-off. The S&P 500 rose while steel fell, which rules out a simple risk-off day.
CSN’s fall is steeper than the sector’s and probably reflects company-specific worries on top of the industry ones, though we hold that view with low confidence. The variable to watch is whether Brazil’s duties start to cut Chinese volumes.
02 The board
Three of the four names fell. CSN’s New York shares dropped -0.86% to US$0.7138, Ternium lost -0.94% to US$51.65, and the ETF slid to US$99.19.
Gerdau bucked the trend with a gain of +0.43% to US$4.66. That is a small rise, but it makes it the only one of the four in the green.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$99.19 | -1.35% |
| Gerdau | US$4.66 | +0.43% |
| CSN (ADR) | US$0.7138 | -0.86% |
| Ternium | US$51.65 | -0.94% |
Source: RT close, 2026-11-03. 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 | 165,528.92 | -1.42% | +19.56% | 167,921.80 | 178,526 | 175,157 | — |
| IPSA | 10,365.73 | -0.09% | — | 10,375.55 | 10,722 | 10,633 | — |
| IPC MEX | 70,848.90 | +1.53% | +12.74% | 69,779.20 | 70,008 | 69,383 | 49,372,306 |
| MERVAL | 2,848,945 | — | +12.65% | 2,859,051 | — | — | — |
| COLCAP | 2,527.66 | +1.47% | — | — | — | — | — |
| USD/BRL | 5.34 | -1.32% | -0.84% | 5.42 | 5.42 | 5.30 | — |
| EUR/BRL | 5.95 | +7.53% | -4.87% | 5.54 | 6.04 | 5.92 | — |
| USD/MXN | 18.69 | +0.62% | +1.45% | 18.57 | 18.69 | 18.54 | — |
| USD/CLP | 983.47 | -0.57% | +5.64% | 989.13 | 991.87 | 979.07 | — |
| USD/COP | 3,149 | +3.06% | -18.02% | 3,056 | 3,173 | 3,111 | — |
| USD/PEN | 3.45 | +0.17% | +3.85% | 3.44 | 3.45 | 3.44 | — |
| USD/ARS | 1,537 | -0.28% | +3.77% | 1,541 | 1,541 | 1,537 | — |
| USD/UYU | 40.21 | +3.57% | +2.29% | 38.83 | 40.21 | 40.08 | — |
| USD/PYG | 5,803 | +3.78% | -16.54% | 5,592 | 5,803 | 5,735 | — |
| USD/BOB | 11.97 | +4.93% | +77.92% | 11.41 | 11.97 | 11.82 | — |
| USD/DOP | 60.54 | +1.83% | -4.34% | 59.45 | 61.14 | 59.85 | — |
| USD/CRC | 451.24 | +2.13% | -7.80% | 441.83 | 451.40 | 450.04 | — |
| USD/GTQ | 7.64 | +3.23% | +2.18% | 7.40 | 7.64 | 7.64 | — |
03 Why it moved
First and heaviest, cheap Chinese steel. Rolled-steel imports into Brazil rose by more than 20% to 5.7 million tons in 2025, and China supplied 64% of them (confidence: high on the direction, medium on the exact figures).
Second, the remedies are slow and unevenly shared. Brazil approved five-year anti-dumping duties (extra charges on goods sold abroad below fair prices) of US$323 to US$670 a ton on Chinese cold-rolled and galvanised steel, which took effect in February 2026.
Usiminas, a Brazilian steelmaker, filed the complaint, and analysts at Safra, a Brazilian bank, rank it the biggest winner, then CSN, then Gerdau. Gerdau has publicly asked Brazil to lift steel import tariffs to 35%, which shows it believes the current wall is not high enough.
Third, in Mexico, Ternium says US Section 232 tariffs (America’s steel import duties) still hurt its manufacturing customers there. It also cites weak Mexican demand and trade-policy uncertainty, and it has shifted sales toward the commercial market.
The usual drivers do not explain the day. The dollar index rose 0.14% to 101.89 and the US 10-year yield rose 7 basis points to 4.97%, which makes building loans dearer, but the S&P 500 still gained 0.36%.
CSN’s collapse, 17.95% lower over five sessions, is bigger than anything in our research explains. Our best reading, at low confidence, is that investors are marking down the group’s heavily indebted, multi-business structure faster than they mark down the sector.
04 The trend behind it
The ETF has fallen for 60 sessions out of a recent peak of 113.57 on 2 June, and it now sits 30.8% above its 20 November 2025 low of 75.82. The pattern is a continuation of a summer-to-autumn decline, not a fresh shock.
Gerdau fell 8.98% in 20 sessions after touching 5.24 on 20 October, yet it remains 42.9% above its 20 March low of 3.26. CSN has done worse, dropping 66.3% from its January peak of 2.12 to a fresh 12-month low.
05 What it means for Latin America
For Brazil, steel is a test of how far protection can go. Duties help domestic mills such as Usiminas, but they raise costs for the carmakers and builders who buy steel, and Gerdau’s 35% request would push that further.
For Mexico, the issue is the border. Ternium sells into a market tied to US factories, and it says progress on removing Section 232 tariffs would help it. Mexico wants those duties lifted, while Washington wants Mexico to do more against unfair trade.
Ternium keeps investing, with capital spending of US$398 million in the third quarter, and its new slab mill in Pesquería is on plan. For Ternium shareholders the guide is steady, not strong: it expects fourth-quarter adjusted EBITDA (operating profit before interest, tax and write-downs) broadly in line with the third.
06 The names to watch
CSN is the stress point: its fall to a 12-month low makes it the name where the next piece of news matters most. Our own history gives a sober guide: after 7 earlier falls this large, it was higher 20 sessions later in only 3, with a median of -2.8% and a worst case of -45.5%.
The wider fund tells a calmer story. After 112 earlier 20-session drops of this size, it was higher 20 sessions later in 59 cases (53%), with a median of +1.0% and a worst case of -44.3%. History is not a forecast, but it says deep falls often pause and sometimes run on.
Gerdau, with 101 earlier cases at 50% higher and a median of +0.2%, is a coin toss on that evidence. Usiminas, the biggest winner of the duties on Safra’s reading, has no verified price here, so we keep it as a name to follow rather than a call.
07 What would end it
The nearest levels are simple. For the ETF, 100 is the round number to regain, and the 2 June peak at 113.57 is far above. For support, there is little until the November 2025 low of 75.82, and for Gerdau the 20 October high of 5.24 is the line to retake.
For CSN, the 12-month low is today’s close, so there is no floor on the chart. A stop in the fall would need a hold above that level over several sessions.
We found no fixed date for the next catalyst. Quarterly results from Gerdau, CSN and Usiminas, and any change to Section 232, are the events that would shift the picture; so would evidence that Chinese imports into Brazil are shrinking.
08 What to watch
- Chinese imports into Brazil: Whether the duties from February 2026 cut Chinese volumes below the 5.7 million tons of rolled steel seen in 2025.
- Gerdau’s tariff request: Any decision on its call for a 35% import tariff, which would lift domestic mills and raise costs for buyers.
- US Section 232 tariffs: Ternium says removal would help, and Mexico is pressing for it.
- CSN’s 12-month low: Whether the New York shares can hold above today’s close or break further.
Frequently Asked Questions
Why did steel stocks fall on Tuesday, 3 November 2026?
The steel-producers ETF fell -1.35% mainly on pressure from cheap Chinese steel, tariff uncertainty and soft demand, since the S&P 500 rose that day.
Who benefits from Brazil’s anti-dumping duties?
Safra’s analysis ranks Usiminas first, then CSN, then Gerdau, as Usiminas filed the complaint behind the duties.
What is Ternium’s outlook?
It expects fourth-quarter adjusted EBITDA broadly in line with the third, with lower seasonal shipments offset by a slightly higher margin per ton.
Does history say steel will rebound?
After 112 earlier falls of similar size the fund was higher 20 sessions later in 53% of cases, with a median of +1.0%, but this is history, not a forecast.
Market data: The Rio Times
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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