Brazil’s CSN Plunges 22.73% as Gerdau Falls 6.86% | Steel, Oct 26
Brazilian steelmakers CSN and Gerdau plunged 22.73% and 6.86% in New York on Monday, while the global steel fund SLX slipped only 0.52%. The post Brazil’s CSN Plunges 22.73% as Gerdau Falls 6.86% | Steel, Oct 26 appeared first on The Rio Times .
Brazil's CSN shares plummeted 22.73%, falling to US$0.91, while Gerdau's stock dipped 6.86% to US$4.75 on October 26, 2026, as the country's stock market took a nosedive. Ternium, a major steelmaker with operations in Mexico, saw a 3.40% drop to US$54.06, while the global steel fund SLX experienced only a 0.52% decline to US$99.52.
The stark contrast between Brazilian steelmakers and the global fund indicates that the decline was driven by Brazil's political and currency turbulence, rather than steel prices. After Lula's re-election, the dollar surged 8.79% against the Brazilian real, exacerbating the impact on riskier assets such as Brazilian stocks. Investors sold off Brazilian assets in response to the political shock, and the weaker real currency resulted in higher borrowing costs for debt-heavy companies like CSN.
The divergent performance of Brazilian steel shares and the global fund underscores the role of Brazil's risk factors in the market sell-off. Steel shares, in the short term, are closely tied to Brazil's political and currency environment, while long-term earnings will be influenced by global steel prices and import competition.
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