Latin America Steel: CSN and Gerdau Rise, Ternium Slips
Key Facts
- CSN’s New York shares gained 0.85% to US$1.18, leading Brazilian steelmakers higher on the session.
- Gerdau’s American depositary receipts rose 0.40% to US$5.02, supported by Brazilian construction demand for long steel.
- Mexico’s Ternium fell 0.72% to US$56.43, as weak Mexican construction and auto demand weighed on the shares.
- Brazil keeps a 25% tariff on steel imports above quotas across 19 product categories until June 2027, shielding local mills from Chinese supply.
- China supplied 45.4% of Latin America’s steel imports in 2025, showing import competition persists despite regional tariffs.
- The Steel ETF SLX closed up 0.61% at US$106.73, suggesting a mildly positive global steel tape behind the Latin American moves.
Today’s Focus
Latin American steel diverged on Tuesday, September 22, 2026. Brazilian producers Gerdau and CSN advanced, while Mexico’s Ternium slipped as investors weighed tariff support against uneven end-market demand.
CSN’s depositary receipts led the Brazilian gains, up 0.85% to US$1.18, while Gerdau added 0.40% to US$5.02. Ternium eased 0.72% to US$56.43 even though Mexico applies tariffs of up to 50% on steel from countries without a free-trade deal.
The global steel basket, the SLX ETF, closed at US$106.73, up 0.61%. That points to a modestly firmer worldwide tone, making CSN’s outperformance look company- and policy-specific rather than part of a broad rally.
The structural story has not changed: tariffs and anti-dumping duties give Latin American mills room to price, but China still supplied 45.4% of regional steel imports in 2025 and import penetration reached 40.4%.
What matters today. Brazilian tariff protection is working for CSN and Gerdau, but Mexico’s demand weakness is capping Ternium regardless of its own import barriers.
01 The session in one read
Latin America’s listed steelmakers split along national lines on Tuesday, September 22, 2026. Brazilian names rose on tariff support and steady construction demand, while Mexico’s Ternium slipped as weak building and automotive activity overshadowed its own trade protection.
The moves were not part of a powerful global steel surge. The SLX steel-producers ETF closed at US$106.73, a gain of just 0.61%, meaning investors were rewarding specific Brazilian companies rather than bidding up the whole sector.
Brazil and Mexico have built solid protection against cheap Chinese flat steel, yet the equity reaction shows markets are now focused on the demand side. Brazilian construction is holding up long-steel producer Gerdau, while Mexico’s fragile factory and building activity is limiting Ternium’s upside despite some of the region’s stiffest tariffs. The variable to watch is Mexican automotive and construction order flow, which will determine whether Ternium can rejoin the Brazilian mills’ advance.
02 The board
CSN’s American depositary receipts, representing the Brazilian flat-steel and iron-ore producer, finished at US$1.18, up 0.85%. Gerdau, Latin America’s largest long-steel maker, closed at US$5.02, a rise of 0.40%.
Mexico’s Ternium, which runs mills across Mexico, Brazil and Argentina, fell 0.72% to US$56.43. Because Ternium reports in US dollars and draws revenue from several Latin American economies, its decline does not read as a bet against Brazilian protection but rather as concern over Mexican demand.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$106.73 | +0.61% |
| Gerdau | US$5.02 | +0.40% |
| CSN (ADR) | US$1.18 | +0.85% |
| Ternium | US$56.43 | -0.72% |
Source: RT close, 2026-09-22. 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 | 187,422.92 | +0.44% | +21.85% | 186,595.60 | 168,310 | 167,142 | — |
| IPSA | 11,426.83 | +0.61% | — | 11,357.82 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 63,646.88 | +0.17% | +12.17% | 63,536.96 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,997,659 | -0.04% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,588.64 | +0.90% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,529.36 | +1.84% | — | — | — | — | — |
| 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 framework is the clearest driver for the domestic names. The country keeps a 25% tariff on steel imported above quotas across 19 product categories through June 2027, plus five-year anti-dumping duties on several Chinese flat-steel products.
Those barriers help CSN, which competes directly with imported flat steel, and give Gerdau breathing room in finished long products. On the demand side, Brazilian construction has remained active, which supports Gerdau’s rebar and structural sections.
Mexico applies up to 50% tariffs on steel from countries without a free-trade agreement, including China. Yet Ternium could not convert that shield into share-price gains because Mexican construction and automotive demand remain fragile.
04 The Latin American read
The tariff walls are high, but they have not stopped competition. China supplied 45.4% of Latin America’s steel imports in 2025, and regional import penetration reached 40.4%.
That means local mills still face price pressure from Chinese supply in non-protected niches or through quota loopholes. For investors outside the region, the attraction of Brazilian and Mexican steel shares is not a simple China-exit story; it is a policy-plus-demand call.
Gerdau benefits from Brazil’s construction cycle and from infrastructure work, while CSN’s flat-steel division leans on automotive and machinery production. Ternium reported that Brazilian automotive and infrastructure-equipment demand held up recently, but Mexican factory construction and agricultural-machinery orders weakened.
05 The names to watch
CSN is the purest tariff play of the three: its flat-steel lines run into direct competition with Chinese plate and coil, so any tightening or extension of anti-dumping duties matters disproportionately to its returns.
Gerdau is the construction proxy. As long as Brazilian building and civil projects keep ordering long products, Gerdau’s pricing should hold even if flat-steel margins elsewhere soften.
Ternium is the regional trade. Its Mexican mills face soft domestic demand, while its Brazilian operations enjoy the same tariff umbrella as CSN and Gerdau, which is why its shares did not fall more sharply on Tuesday.
06 The outlook
Brazilian steel shares are likely to hold their gains as long as domestic construction and infrastructure spending compensate for weak global prices. CSN carries more torque because its earnings are finely geared to Brazil’s industrial cycle, while Gerdau offers a steadier construction-linked cash flow.
The main risk is policy slippage: if Brazil waters down the quota or anti-dumping regime before June 2027, the investment case for CSN and Gerdau weakens. For Ternium, the catalyst is a recovery in Mexican automotive output and factory construction, which would turn its tariff advantage into earnings.
07 What to watch
- Mexican auto output: fragile automotive demand is capping Ternium despite tariffs of up to 50% on non-FTA steel.
- Brazil’s quota regime: the 25% above-quota tariff through June 2027 is the central support for CSN and Gerdau.
- Chinese import share: at 45.4% of Latin American steel supply, Chinese pricing still sets the ceiling for regional mills.
- Brazilian construction spending: long-steel demand is holding Gerdau up; any public-works slowdown would reverse that support.
Frequently Asked Questions
Why did CSN rise on Tuesday?
CSN rose 0.85% to US$1.18 because Brazil’s 25% above-quota tariff and anti-dumping duties on Chinese flat steel protect its key product lines.
Why did Ternium fall while Brazilian steelmakers rose?
Ternium fell 0.72% to US$56.43 because Mexican construction and automotive demand remain fragile, offsetting the benefit of Mexico’s tariffs on Chinese steel.
Do tariffs keep Chinese steel out of Latin America?
No. China still supplied 45.4% of Latin America’s steel imports in 2025, and regional import penetration reached 40.4% despite the barriers.
Is the SLX a good way to track Latin American steel?
Only partly. The SLX is a global steel-producer basket and closed at US$106.73 on Tuesday, up 0.61%; Latin American moves are often driven by local tariffs and demand rather than the global tape.
Market data: RT
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