Steel ETF Slips 0.55% as Ternium Falls 0.75% | Steel, Oct 14
Key Facts
- The SLX steel fund fell 0.55% to US$102.46 on Wednesday 14 October, while Ternium fell 0.75% to US$58.55 and Gerdau 0.19% to US$5.17.
- Brazil’s Usiminas lost 4.76% in São Paulo, InfoMoney reported, among the biggest fallers on the Ibovespa.
- China’s producer prices rose 5.0% in September from a year earlier, above the 4.5% forecast, a sign of firm demand for industrial goods.
- US inflation of 3.7% beat the 3.6% forecast, lifting the dollar and weighing on cyclical stocks.
Today’s Focus
Latin American steel shares fell on Wednesday 14 October as the US dollar rose. The SLX fund, which holds global steelmakers, lost 0.55% to US$102.46.
Brazil’s Usiminas fell 4.76%, and Ternium, which has plants in Mexico, Argentina and Brazil, fell 0.75%.
We have no live price for steel itself, so this report uses shares as proxies.
What matters today. Steel shares show how industry and construction demand is seen in Brazil and Mexico, and Ternium and Gerdau are the US-listed ways to hold them.
01 The session in one read
The steel fund and Latin American steelmakers fell, but by less than copper and iron ore miners. Usiminas was the exception, with a 4.76% drop.
The pattern followed the dollar and the stock market rather than steel news.
Steel shares fell with the market, and Usiminas fell more on its own. We have no steel price to check against.
The variable to watch is whether China’s firm data lifts steel prices in the coming days.
02 The board
| Asset | Level | Change |
|---|---|---|
| Steel (SLX fund) | US$102.46 | -0.55% |
| Ternium (NYSE) | US$58.55 | -0.75% |
| Gerdau (NYSE) | US$5.17 | -0.19% |
| Usiminas (B3) | São Paulo | -4.76% |
| Dollar index (DXY) | 102.5 | +0.34% |
The board shows funds and shares because we have no steel price feed. Steelmakers respond to the economy as well as the metal.
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Latin America — Cross-Market Board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 206,505.98 | -0.18% | +21.85% | 206,887.52 | 168,310 | 167,142 | — |
| IPSA | 10,966.21 | -0.49% | — | 11,020.01 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 66,659.01 | -0.46% | +12.17% | 66,965.15 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,835,843 | -1.16% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,582.29 | +0.46% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 60,511.74 | -1.60% | — | — | — | — | — |
| 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 US consumer price index rose 0.6% in September and 3.7% over twelve months, above the 3.6% forecast, the Bureau of Labor Statistics said. Higher US yields raise borrowing costs for industry.
China’s producer prices rose 5.0% in September from a year earlier, above the 4.5% forecast, and its balance of trade showed a surplus of US$133.53 billion (905.97 billion yuan), against a forecast of US$118.1 billion, official data showed.
Customs data showed exports up 36.3% and imports up 31.0% from a year earlier, against forecasts of 25.5% and 24.5%. Consumer prices rose 0.9%, just under the 1.0% forecast.
Banks made 1,080 billion yuan of new loans (about US$159 billion), above the 975 billion forecast, and total social financing reached 3,550 billion yuan (about US$523 billion). Money supply grew 7.2%, below the 7.4% forecast, and outstanding loans grew 4.8%, as forecast, using about 6.79 yuan per dollar, the rate implied by the trade data.
04 The Latin American read
Brazil’s Ibovespa fell 0.18%, with Usiminas among the biggest losers, InfoMoney reported. Mexico’s IPC fell 0.26%.
Brazil’s services sector shrank 0.1% in August, the statistics institute IBGE said, a soft sign for domestic demand.
05 The names to watch
Ternium, with plants in Mexico, Argentina and Brazil, trades in New York. Gerdau is a major Brazilian steelmaker and also trades there.
Usiminas trades in São Paulo only.
06 The outlook
Steel shares will follow the dollar and Chinese demand signals. US retail sales on Thursday 15 October at 12:30 UTC are the next macro test.
What it means for you: if you hold steelmakers, watch the Mexican peso and the Brazilian real as much as the steel price, because both change dollar returns.
07 What to watch
- China: Steel output and property data will show whether firm prices last.
- Usiminas: The next company update will show whether Wednesday’s fall was an overreaction.
- The dollar: A further rise would keep pressure on cyclical stocks.
- US data: US retail sales on Thursday 15 October at 12:30 UTC.
Background: Ternium Gains 1.81% as Steel ETF Slips 0.07%.
Background: Brazil Stocks Drop 1.04% as Poll Shows a Tie.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
Why did steel stocks fall on 14 October?
The SLX fund fell 0.55% as US inflation of 3.7% lifted the dollar and weighed on cyclical stocks.
How did Ternium and Gerdau do?
Ternium fell 0.75% to US$58.55 and Gerdau 0.19% to US$5.17 in New York.
Why did Usiminas fall 4.76%?
InfoMoney listed it among the biggest fallers on the Ibovespa. We found no company news that explains the move.
What is the steel price?
We could not confirm a steel price on 14 October, so we use shares as proxies.
Market data: RT; US inflation: US Bureau of Labor Statistics; China data: National Bureau of Statistics and customs; Usiminas and Brazilian market: InfoMoney
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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