Steel ETF Gains 1.5% as CSN Jumps 6.9% | Steel, Oct 5
Steel shares rose on Monday: the SLX ETF gained 1.54%, CSN’s ADR jumped 6.90% and Gerdau gained 3.19%. See the board and what to watch. The post Steel ETF Gains 1.5% as CSN Jumps 6.9% | Steel, Oct 5 appeared first on The Rio Times .
Steel shares in Latin America surged on Monday, driven by a victory in Brazil's election. CSN, a New York-listed steel company, saw its shares jump 6.90% to US$1.24, while Gerdau rose 3.19% to US$5.17 and Ternium gained 2.40% to US$57.97. The SLX steel ETF, which holds a global basket of steel producers, climbed 1.54% to US$105.13.
The gains in steel shares can be attributed to the election outcome in Brazil, which brought a period of broad buying in the country. Steel makers in Brazil and Mexico rely heavily on import tariffs, so the policy landscape is a crucial factor alongside steel prices. The strong performance of Brazil's market contributed to the overall rally, accounting for part of the steel gains.
Brazil's steel industry benefits from a 25% tariff on steel imports above quotas, in place through June 2027, which provides support for domestic mills. The stronger Brazilian real also lifted the dollar value of these stocks. The main listed Latin American steel names in New York are CSN, Gerdau, and Ternium, each with its own focus - CSN in construction, Gerdau in construction, and Ternium in industry and cars.
The runoff election on October 25 and the return of Chinese markets on October 8 will be the next key signals to watch. The SLX fund, a US-listed ETF, tracks steel producers worldwide and includes Brazil's Gerdau, CSN, and Mexico's Ternium.
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