Latin American Steel Slips as Gerdau and Ternium Fall
Brazilian long-steel proxy Gerdau led Latin American steel lower Wednesday, while CSN firmed. Tariffs still cap Chinese imports, but Fed-rate pressure set the t The post Latin American Steel Slips as Gerdau and Ternium Fall appeared first on The Rio Times .
Latin American steel shares declined on Wednesday amid global market caution, with Brazil's Gerdau leading the drop. Gerdau's New York ADR fell -1.38% to US$4.99, while Ternium in Mexico slipped -0.47% to US$56.98. Only Brazil's CSN rose, gaining +0.83% to US$1.21. The market reaction mirrored the impact of the US Federal Reserve's 25-basis-point rate hike, which increased financing costs for construction projects across Latin America and heightened construction costs.
Tariffs remain a primary shield for the region's steel industry, with Brazil imposing a 25% tariff on steel imports above quotas and Mexico applying tariffs ranging from 5% to 50% across 1,463 tariff lines. However, Chinese mills still supplied nearly half of Latin America's steel imports in 2025, with Brazil's tariff wall only partially effective against these imports.
The mixed performance of Latin American steel shares highlights the tension between tariff protection and the cooling effects of higher interest rates on construction demand.
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.
