Key Facts
- Brazil keeps a 25% tariff on above-quota imports of 19 steel products through June 2027, shielding Gerdau, CSN and Usiminas from Chinese supply.
- China supplied 45.4% of Latin America’s steel imports in 2025, and regional import penetration reached a record 40.4%, showing the tariff wall is porous.
- CSN’s New York depositary receipts jumped +6.36% to US$1.17, the standout move among Latin American steel names on Monday, September 21, 2026.
- Gerdau’s New York shares rose +1.21% to US$5, finding support from Brazilian construction demand behind the tariff shield.
- Ternium’s New York ADR slipped -0.68% to US$56.84, lagging as Mexican auto and construction demand stayed fragile despite tariffs up to 50%.
- The SLX steel-producers ETF closed at US$106.08, down 0.01%, showing global steel investors remain cautious.
Today’s Focus
Latin American steel names diverged on Monday, September 21, 2026. CSN’s New York depositary receipts surged +6.36% to US$1.17 while Gerdau gained +1.21% to US$5, but Ternium fell -0.68% to US$56.84 and the SLX ETF slipped 0.01% to US$106.08.
The split reflects two forces pulling in opposite directions. Tariff walls in Brazil and Mexico are keeping out cheap Chinese steel, but construction and auto demand in both countries remains too weak to lift volumes.
Brazil’s 25% above-quota tariff on 19 steel products, renewed in late May 2026 through June 2027, is the main support. Mexico applies tariffs of up to 50% on 1,463 products from countries without a free-trade agreement, including steel, plus a separate 25% steel tax dating from August 2023.
Yet import penetration in Brazil reached 22.5% in the first half of 2026, and China supplied 45.4% of Latin America’s steel imports in 2025. The shields help at the margin but do not eliminate competition.
What matters today. Investors are weighing tariff protection against persistently soft Brazilian and Mexican steel demand.
01 The session in one read
Latin American steel equities closed mixed on Monday, September 21, 2026. CSN’s New York depositary receipts jumped +6.36% to US$1.17, the strongest move among regional producers, while Gerdau added +1.21% to US$5.
Ternium slipped -0.68% to US$56.84 and the SLX ETF of steel producers edged down 0.01% to US$106.08, showing global investors are still cautious on the sector.
Latin American steel remains a two-speed trade. Brazil’s tariff and anti-dumping regime is giving CSN and Gerdau room to defend prices, but Mexico’s Ternium is struggling even with a 50% tariff wall because its auto and construction end-markets are not pulling. The variable to watch is whether Brazil’s import penetration keeps climbing from 22.5% in the first half of 2026.
02 The board
The price board tells a story of Brazilian names outperforming Mexico. CSN’s depositary receipts at US$1.17 and Gerdau at US$5 both rose, reflecting the support from Brazil’s 25% above-quota tariff and five-year anti-dumping duties on Chinese cold-rolled, coated, hot-dip galvanised and pre-painted flat steel plus wire rod.
Ternium at US$56.84 lagged despite Mexico’s tariff wall of up to 50% on steel imports and a separate 25% steel tax. The SLX ETF at US$106.08 was essentially flat, down 0.01%, as global steel investors weighed weak demand against protection.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$106.08 | -0.01% |
| Gerdau | US$5 | +1.21% |
| CSN (ADR) | US$1.17 | +6.36% |
| Ternium | US$56.84 | -0.68% |
Source: RT close, 2026-09-21. 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 | 186,595.60 | +0.74% | +21.85% | 185,229.17 | 168,310 | 167,142 | — |
| IPSA | 11,357.82 | -0.21% | — | 11,381.18 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,536.96 | +0.25% | +12.17% | 63,375.93 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,998,956 | -0.76% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,565.55 | +0.68% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,344.04 | +0.31% | — | — | — | — | — |
| 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 Foreign Trade Chamber renewed the steel quota policy on 28–29 May 2026, keeping the 25% above-quota tariff for 12 months to June 2027. That shield is the main driver behind Monday’s gains in CSN and Gerdau.
But the shield is far from airtight. Brazil’s import penetration reached 22.5% in the first half of 2026, and China supplied 45.4% of Latin America’s steel imports in 2025. Regional import penetration reached a record 40.4%.
Mexico applies tariffs of up to 50% on 1,463 products from countries without a free-trade agreement, including steel, in force since January 1, 2026. A separate 25% steel tax has been in place since August 2023.
Construction and auto demand remain the weak link across both countries. Gerdau, tied to Brazilian long steel and construction, has swung between gains and losses in recent sessions as that demand stays fragile.
04 The Latin American read
For foreign investors, the Latin American steel trade is a bet on tariff persistence against cheap Chinese supply. Brazil’s anti-dumping duties on Chinese steel range from US$284.98 to US$709.63 per tonne, a meaningful barrier on top of the 25% quota tariff.
Mexico’s Ternium faces a different problem. The tariff wall is high, but Mexican auto production and construction are not growing fast enough to offset competition and soft regional pricing.
The fact that Chinese steel still found 22.5% import penetration in Brazil during the first half of 2026 despite the duties shows the limits of protection. Latin American producers can defend margins but are not winning back market share aggressively.
05 The names to watch
Gerdau and CSN are the purest expressions of Brazil’s tariff story. Gerdau’s construction-linked long steel business is the most sensitive to domestic infrastructure spending and the 25% quota tariff.
CSN’s jump on Monday suggests investors are rewarding the flat-steel producer for its defensive position under Brazil’s anti-dumping regime, even though its New York depositary receipts remain below the US$1.22 level seen in a recent session before this rebound.
Ternium is the regional laggard to watch. Mexico’s tariff wall is steep, but the company’s ADR at US$56.84 shows the market wants to see stronger auto and construction orders before rewarding the name.
06 The outlook
The next catalyst for Latin American steel will be evidence that Brazilian construction demand is translating into higher volumes for Gerdau, CSN and Usiminas, or that Mexican auto output is recovering enough to lift Ternium.
The SLX ETF’s flat close at US$106.08 suggests global investors are waiting rather than chasing the tariff narrative. As long as Chinese steel finds buyers across Latin America, the regional premium will remain capped.
07 What to watch
- Brazil construction data: Monthly construction activity figures will show whether Gerdau’s long-steel volumes are recovering behind the tariff shield.
- Chinese export flows: Watch China’s steel export data for signs that shipments to Latin America are shifting around tariffs or through third countries.
- Mexico auto production: Auto output and exports are the main demand driver for Ternium’s flat steel; any recovery would support the ADR.
- Brazil import penetration: If penetration holds above 20% despite the 25% tariff, pressure on CSN and Usiminas pricing could build.
Frequently Asked Questions
Why did CSN jump on Monday, September 21, 2026?
CSN’s New York depositary receipts rose +6.36% to US$1.17, reflecting Brazil’s 25% quota tariff and anti-dumping duties on Chinese steel.
What tariffs protect Latin American steel from China?
Brazil has a 25% above-quota tariff on 19 steel products through June 2027, plus anti-dumping duties of US$284.98 to US$709.63 per tonne. Mexico applies tariffs of up to 50% and a separate 25% steel tax.
Why is Ternium lagging?
Mexico’s auto and construction demand remains soft, so even a steep tariff wall has not lifted Ternium’s ADR, which fell -0.68% to US$56.84.
Is the tariff wall working?
Only partly. Brazil’s import penetration still reached 22.5% in the first half of 2026, and China supplied 45.4% of Latin America’s steel imports in 2025.
Market data: RT
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