Steel Wrap: Gerdau Gains as CSN Slumps on Tariffs

On September 11, 2026, Latin American steel shares experienced a notable split, with Gerdau gaining as CSN struggled amid trade tariffs. Gerdau's US-traded stock rose 0.98% to $5.15, driven by increased demand for its rebar and structural products in Brazil's construction sector, the part of the market most benefiting from import barriers.

In contrast, CSN's US-traded ADR fell 7.97% to $1.27, with investors reacting negatively to its flat-steel exposure despite five-year anti-dumping duties on Chinese cold-rolled, coated, galvanised, and pre-painted products.

Ternium, a Mexican steel producer, saw a modest 0.50% increase to $57.90, a stable performance amid nearshoring factory construction and Mexican auto assembly. The broader SLX steel ETF gained 0.31% to $108.97. The main driver behind this divergence was trade defense policies, rather than a rise in demand. Brazil has extended a 25% above-quota tariff through June 2027, while Mexico has imposed duties up to 50% on non-free-trade partners.

Despite these protective measures, Latin American steel consumption appears to be growing minimally.

The key takeaway from Friday's market movement is that the Latin American steel sector is being influenced more by trade policy than by actual demand growth. Gerdau's resilience in the Brazilian construction market stands out, while CSN's decline underscores the challenges faced by flat-steel producers. Ternium's performance, while less dramatic, reflects its global diversification and support from Mexican nearshoring efforts.

As long as Brazilian construction remains strong, the gap between Gerdau's performance and CSN's struggles is likely to persist. Investors will be watching closely for the next Brazil import penetration figure, which could provide crucial insights into the effectiveness of tariff protection.