LatAm Steel: Gerdau Jumps 2.29% as Tariffs Hold
Gerdau's ADR climbed 2.29% to US$4.46 while CSN added 0.98% and Ternium dipped 0.13% Wednesday. Brazil's 25% steel tariff and Mexico's 50% China levy face cheap The post LatAm Steel: Gerdau Jumps 2.29% as Tariffs Hold appeared first on The Rio Times .
On Wednesday, August 26, 2026, Brazilian steelmakers Gerdau and CSN both rose, while Mexico's Ternium slipped slightly, as the global steel-producers ETF slipped as well. Gerdau's US-listed shares increased by 2.29% to $4.46, the strongest performance among the Latin American names, while CSN added 0.98% to $1.03. Mexico's Ternium declined 0.13% to $55.13.
The mixed market reflects investors balancing tariff protection against weak construction and auto order books in Brazil. The 25% above-quota tariff on 19 steel products in Brazil remains a core price floor for local mills, renewed until June 2027. Mexico's tariffs range from 25% to 50% on imports from countries without a free-trade deal, but Asian exporters bypass these walls by rerouting supply through third countries.
Despite tariff walls holding, flat-steel margins remain vulnerable, with long-product producers showing steadier footing. Gerdau's rise indicates investors see protection for long-steel margins in Brazil's stable construction demand. CSN's recovery shows a modest return after a Monday jump, while Ternium's flat performance reflects its nearshoring-driven factory demand versus cheap Chinese steel.
The global steel-producers ETF's decline to $108.60 suggests cautious global steel sentiment. The key variable to watch is the monthly import volume data into Brazil and Mexico, as Asian rerouting through third countries like Vietnam or Turkey could impact the effectiveness of the tariff walls.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
