Gerdau ADR Jumps 4.2% as Brazil Steel Shares Rally | Steel Report, Oct 2
Brazilian steel ADRs rallied on Friday, with Gerdau up 4.16% and CSN up 3.57%, while Ternium gained 2.37% under the unresolved 50% US tariff on Mexican steel. The post Gerdau ADR Jumps 4.2% as Brazil Steel Shares Rally | Steel Report, Oct 2 appeared first on The Rio Times .
On October 2, Latin American steel equities experienced a surge, with Brazilian ADRs leading the charge. The VanEck Steel ETF also rose 1.69% to US$103.53. Gerdau's ADR increased by 4.16% to US$5.01, while CSN climbed 3.57% to US$1.16, marking the strongest gain among Brazilian shares. Ternium's ADR advanced 2.37% to US$56.61, but its upside is constrained by US tariffs on Mexican steel.
The market's response to Brazil's tariff protection and construction demand is evident, even as cheap Chinese imports continue to exert pressure on flat-steel pricing. CSN's strong performance is attributed to its higher exposure to flat-steel, which is particularly vulnerable to anti-dumping duties and quota tariffs on Chinese supply.
Ternium's gains are limited by US tariffs on Mexican steel. The regional rally suggests that investors view the 25% quota tariff and anti-dumping duties as a lasting earnings floor for CSN, Gerdau, and Usiminas. However, the rally's sustainability depends on the credibility of tariff enforcement and the continued influx of Chinese imports, which still represent 45.4% of Latin America's steel imports in 2025.
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