By The Rio Times | Created at 2026-08-24 06:54:58 | Updated at 2026-09-03 05:01:06
1 week ago
Key Facts
- CSN ADR surged 10.11% to US$0.98, the standout mover on the steel board Friday.
- The SLX steel ETF rose 2.29% to US$107.20, signalling broad buying in global steel equities.
- Ternium added 2.29% to US$55.45, tracking the wider steel recovery.
- Gerdau ADR closed flat at US$4.33 with a 0.00% change, lagging its Latin American peers.
- Brazil keeps a 25% tariff on Chinese steel above quota, shielding Gerdau, CSN and Usiminas.
- Chinese hot-rolled coil is offered near US$483 a tonne undercutting Brazilian output costs and pressuring local mills.
Today’s Focus
The session belonged to the laggards. CSN’s New York-listed shares jumped 10.11% to US$0.98, the sharpest gain on the steel board, while Mexican producer Ternium rose 2.29% to US$55.45.
The broad SLX steel-producers ETF advanced 2.29% to US$107.20, showing buyers returning to global steel equities despite the constant pressure of cheap Chinese supply.
Gerdau’s ADR was the odd one out, finishing unchanged at US$4.33. Yet the Brazilian market still leans on a managed trade regime: a 25% tariff applies to Chinese steel above quota, and the quota now covers 19 products.
Foreigners reading this board should see a market propped up by policy, not just demand. Construction and auto orders are steady, but the real stabiliser is Brasília’s tariff wall against Chinese hot-rolled coil offered near US$483 a tonne.
What matters today. Brazilian steel shares are being carried by trade protection as much as by construction and auto demand.
01 The session in one read
Steel equities across Latin America closed Friday, August 21, 2026, with a clear divide between recovering laggards and flat stalwarts. CSN’s New York-listed shares led the pack with a 10.11% jump to US$0.98, a move that smells like bargain-hunting after a long slide.
Ternium, the Mexican producer with exposure to both Mexican and Argentine markets, rose 2.29% to US$55.45. Gerdau’s ADR, by contrast, ended the day exactly unchanged at US$4.33, a sign that investors still hesitate over Brazil’s domestic steel outlook.
Assessment — Tariffs cushion, but do not cure MEDIUM
The steel board’s Friday gains look less like a demand surge and more like investors rewarding the most beaten-down names once tariff protection stayed in place. CSN’s 10.11% jump is a rebound from a distressed price, not a sign that Chinese competition has disappeared. The variable to watch is whether Brazil extends its steel import quotas again before the June 2027 deadline.
02 The board
The SLX steel-producers ETF, a useful proxy for global steel equities, gained 2.29% to US$107.20. That put the Latin American complex in line with a broader rotation into industrial names.
Within that basket, Ternium’s 2.29% rise to US$55.45 matched the ETF almost perfectly. CSN’s ADR stood apart at US$0.98 after its 10.11% surge, while Gerdau’s ADR at US$4.33 showed no movement at all, suggesting investors are treating each name on its own balance-sheet and trade risk rather than as a single regional trade.
| Steel (SLX ETF) | US$107.20 | +2.29% |
| Gerdau | US$4.33 | +0.00% |
| CSN (ADR) | US$0.98 | +10.11% |
| Ternium | US$55.45 | +2.29% |
Source: RT close, 2026-08-21. Where a commodity has no spot feed, an exchange-traded tracker or leading producer is shown as a labelled proxy.
Live Market IntelligenceThe live market boardInside: market breadth, the sector heatmap, currencies & rates, the Latin America scoreboard and the full instrument board.Rio Times · Live Market Intelligence
Latin America — Cross-Market Board
Regional
Aug 24, 2026 · 03:38
Ibovespa · benchmark
171,031.73 +1.85%
L 167,142day rangeH 168,310
+21.85% over 12 months
Market breadth · 5 names
100% advancing
5 ▲ advancing0 declining ▼
Currencies, rates & key inputs
Latin America scoreboard
IndexLastTodayStrength
IbovespaBrazil 171,031.73 +1.85%
S&P/BMV IPCMexico 65,729.18 +2.14%
S&P IPSAChile 11,338.38 +0.89%
S&P MERVALArgentina 2,913,184 +1.30%
MSCI COLCAPColombia 2,459.23 +0.61%
BVL S&P PerúPeru 58,698.13 +2.60%
Full instrument board
| IBOV | 171,031.73 | +1.85% | +21.85% | 167,927.15 | 168,310 | 167,142 | — |
| IPSA | 11,338.38 | +0.89% | — | 11,237.90 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 65,729.18 | +2.14% | +12.17% | 64,349.80 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,913,184 | +1.30% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,459.23 | +0.61% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 58,698.13 | +2.60% | — | — | — | — | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| EUR/BRL | 5.95 | +1.01% | -5.83% | 5.89 | 5.98 | 5.94 | — |
| USD/MXN | 17.06 | -0.24% | -8.58% | 17.10 | 17.08 | 17.01 | — |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| USD/COP | 3,140 | +0.03% | -22.04% | 3,139 | 3,141 | 3,105 | — |
| USD/PEN | 3.36 | -0.66% | -4.82% | 3.38 | 3.38 | 3.35 | — |
| USD/ARS | 1,493 | +0.10% | +12.96% | 1,491 | 1,494 | 1,480 | — |
| USD/UYU | 40.27 | +1.24% | +1.80% | 39.77 | 40.27 | 40.23 | — |
| USD/PYG | 5,939 | +1.68% | -19.54% | 5,841 | 5,939 | 5,925 | — |
| USD/BOB | 11.64 | -0.76% | +72.04% | 11.73 | 11.72 | 11.64 | — |
| USD/DOP | 58.34 | +1.25% | -3.44% | 57.62 | 58.34 | 58.04 | — |
| USD/CRC | 445.92 | +0.89% | -9.71% | 441.97 | 448.50 | 445.92 | — |
Largest moves today
BVL PERÚ 58,698.13 +2.60%
IPC MEX 65,729.18 +2.14%
IBOV 171,031.73 +1.85%
USD/PYG 5,939 +1.68%
MERVAL 2,913,184 +1.30%
USD/DOP 58.34 +1.25%
USD/UYU 40.27 +1.24%
EUR/BRL 5.95 +1.01%
The session read
The Ibovespa rose 1.85%, with breadth positive — 5 of 5 names higher. BVL PERÚ led, while COLCAP lagged.
G
◆ Live Company Intelligence
Gerdau
SA: GGBR4GGBR4Basic MaterialsSteel30,000 employees
Valuation & profitability
Market capR$43.46B
Revenue (TTM)R$69.54B
P / E ratio19.3
Profit margin3.2%
Return on equity4.2%
Price & risk
52-wk low
$15.7852-wk high
$26.44
Beta (volatility)0.91
200-day average$21.67
Revenue trend · 6y
20202025
Latest R$69.86B
Ownership
Institutions48.3%
Shares outstanding1.25B
Dividend
Yield3.6%
Payout ratio26.3%
Fwd. annual$0.92
What Gerdau does. Gerdau S.A., together with its subsidiaries, operates as a steel producer company. It operates through Brazil Business, North America Business, and South America Business segments. The company offers rebars, bars, wires, thick plates, hot rolled coils, billets, blooms, plates, wire rods, and structural profiles. It also provides special steel products for agricultural,…
03 What moved it
The biggest driver is still China. Steelmakers there have been offering hot-rolled coil at around US$483 a tonne, a price that undercuts Brazilian production costs and keeps pressure on local mills such as Gerdau, CSN and Usiminas.
Brazil’s answer has been managed trade. The Foreign Trade Chamber kept a 25% tariff on Chinese steel imported above quota and renewed the quota regime on 28 May 2026 for a further 12 months to June 2027, covering 19 products, which helps domestic mills hold price. That policy shield is a key reason CSN’s ADR could stage a 10.11% rebound.
04 The Latin American read
For foreign investors, the Latin American steel complex is two stories in one. Brazil is a protected market where tariffs and quotas shape profits, while Mexico trades more directly on regional construction and auto demand through producers like Ternium.
Construction and automotive orders have been steady enough to keep the sector from collapsing, but they have not been strong enough to explain Friday’s moves on their own. The bigger force was position squaring among beaten-down names, with CSN’s 10.11% gain the clearest example.
05 The names to watch
CSN is the volatile name: its ADR at US$0.98 after a 10.11% rise shows how sensitive the stock is to any shift in tariff policy or Chinese pricing. Gerdau at an unchanged US$4.33 is the steadier but stalled bellwether.
Ternium at US$55.45 offers Mexico exposure and a less tariff-dependent demand story, making it the cleanest way to bet on North American construction and auto cycles. The SLX ETF at US$107.20 remains the broadest single instrument for tracking all of them.
06 The outlook
The near-term path depends on Brasília’s next trade decision as much as on steel consumption. If the import regime is extended beyond June 2027, Brazilian producers keep their price floor; if it lapses, the flood of Chinese coil at roughly US$483 a tonne could force another round of margin cuts.
07 What to watch
- Brazil quota renewal: Watch whether Gecex-Camex extends steel import quotas past June 2027; lapse would expose mills to Chinese price pressure.
- Chinese hot-rolled coil pricing: Watch the US$483 per tonne offer level; any further cut would deepen pressure on Gerdau, CSN and Usiminas.
- CSN ADR momentum: Watch US$0.98 after the 10.11% jump; follow-through would confirm a real sentiment shift, not a one-day squeeze.
- Ternium auto demand: Watch Mexican and US auto production; Ternium at US$55.45 tracks that cycle more closely than Brazil’s tariff story.
Frequently Asked Questions
Why did CSN’s ADR jump 10.11%?
CSN’s New York shares rebounded to US$0.98 as investors bought a beaten-down name still protected by Brazil’s tariff regime.
What is the SLX ETF?
SLX is a global steel-producers ETF; it closed at US$107.20, up 2.29% on Friday, August 21, 2026.
How does Brazil protect its steelmakers?
Brazil applies a 25% tariff on Chinese steel above quota and renewed the 19-product quota regime through June 2027.
Why is Chinese steel a problem for Latin America?
Chinese mills offer hot-rolled coil around US$483 a tonne, undercutting Brazilian production costs and pressuring local prices.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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