By The Rio Times | Created at 2026-10-09 01:26:49 | Updated at 2026-10-09 03:07:51
2 hours ago
Key Facts
- Gerdau fell most US-listed shares dropped 1.99% to US$4.92 as weak construction demand pressures long steel.
- SLX slipped the steel-producers ETF closed at US$101.96, down 0.46% on the session.
- CSN was flat the ADR finished unchanged at US$1.23 as flat-steel tariff protections offset import pressure.
- Ternium held steady shares rose 0.11% to US$56.47 behind Mexico’s tariffs up to 50% on non-FTA steel.
- Chinese imports loom China supplied 45.4% of Latin America’s steel imports in 2025, keeping a lid on local prices.
- Auto demand softened Brazil’s September vehicle output reached 268,300 units, up 10.2% from a year earlier (Anfavea).
Today’s Focus
Latin American steel shares drifted lower on Thursday, October 8, 2026, with Gerdau the weakest name as construction demand stays too soft to spark a rally.
The SLX steel-producers ETF fell 0.46% to US$101.96, while CSN’s ADR closed flat at US$1.23 and Ternium added 0.11% to US$56.47.
Brazil’s 25% tariff on steel imports above quotas, plus anti-dumping duties on Chinese cold-rolled and coated products, is shielding flat-steel producers like CSN and Usiminas more than long-steel maker Gerdau.
Mexico’s tariffs of up to 50% on steel from countries without free-trade agreements are protecting Ternium, but demand has not recovered broadly enough to lift prices.
What matters today. The tariff walls are holding, but the missing ingredient for a real steel rally remains physical demand from construction and autos.
01 The session in one read
Latin American steel equities had a listless Thursday, October 8, 2026, with no clear direction from either the demand or supply side.
The SLX steel-producers ETF, a barometer for global steel equities, slipped 0.46% to US$101.96, suggesting investors see little near-term upside.
Assessment — Tariffs defend; demand disappoints HIGH
The session confirmed a market stuck between protective policy and sluggish consumption. Tariffs keep some Chinese steel out, but they cannot create demand where builders and buyers are cautious.
Watch Brazilian monthly vehicle production and construction activity indicators, because any sustained upturn there would flow directly into flat and long steel orders.
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02 The board
Gerdau, the Brazilian long-steel producer tied to construction, led the declines with a drop of 1.99% to US$4.92 on its US listing.
Brazilian flat-steel producer CSN ended exactly flat at US$1.23, while Mexican steelmaker Ternium managed a marginal gain of 0.11% to US$56.47.
| Steel (SLX ETF) | US$101.96 | -0.46% |
| Gerdau | US$4.92 | -1.99% |
| CSN (ADR) | US$1.23 | +0.00% |
| Ternium | US$56.47 | +0.11% |
Source: RT close, 2026-10-08. 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
Oct 8, 2026 · 21:54
Ibovespa · benchmark
206,220.24 +0.94%
L 167,142day rangeH 168,310
+21.85% over 12 months
Market breadth · 5 names
60% advancing
3 ▲ advancing2 declining ▼
Currencies, rates & key inputs
Latin America scoreboard
IndexLastTodayStrength
IbovespaBrazil 206,220.24 +0.94%
S&P/BMV IPCMexico 64,851.89 +0.31%
S&P IPSAChile 11,024.22 +0.22%
S&P MERVALArgentina 2,832,472 +0.30%
MSCI COLCAPColombia 2,525.90 -0.36%
BVL S&P PerúPeru 60,766.81 -1.71%
Full instrument board
| IBOV | 206,220.24 | +0.94% | +21.85% | 204,302.33 | 168,310 | 167,142 | — |
| IPSA | 11,024.22 | +0.22% | — | 10,999.64 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 64,851.89 | +0.31% | +12.17% | 64,653.33 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,832,472 | +0.30% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,525.90 | -0.36% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 60,766.81 | -1.71% | — | — | — | — | — |
| 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 60,766.81 -1.71%
USD/PYG 5,939 +1.68%
USD/DOP 58.34 +1.25%
USD/UYU 40.27 +1.24%
EUR/BRL 5.95 +1.01%
IBOV 206,220.24 +0.94%
USD/CRC 445.92 +0.89%
USD/BOB 11.64 -0.76%
The session read
The Ibovespa rose 0.94%, with breadth positive — 3 of 5 names higher. IPC MEX led, while BVL PERÚ lagged.
G
◆ Live Company Intelligence
Gerdau
SA: GGBR4GGBR4Basic MaterialsSteel30,000 employees
Valuation & profitability
Market capR$49.46B
Revenue (TTM)R$69.54B
P / E ratio21.9
Profit margin3.2%
Return on equity4.2%
Price & risk
52-wk low
$16.6652-wk high
$27.13
Beta (volatility)0.89
200-day average$22.52
Revenue trend · 6y
20202025
Latest R$69.86B
Ownership
Institutions38.5%
Shares outstanding1.24B
Dividend
Yield3.1%
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
Cheap Chinese supply remains the dominant structural force. China provided 45.4% of Latin America’s steel imports in 2025, and imports as a whole represented 39.7% of regional steel consumption.
Brazil applies a 25% tariff to steel imports above quotas covering 19 steel products, a policy extended through June 2027, alongside anti-dumping duties on several Chinese flat-steel categories.
Mexico deploys tariffs of up to 50% on steel from countries without free-trade agreements, shielding Ternium from some competition.
04 The Latin American read
Brazilian vehicle production reached 268,300 units in September 2026, up 10.2% from a year earlier, the carmakers’ association Anfavea said.
Anfavea counted 281,400 vehicle sales in September.
Construction demand remains insufficient for a strong steel rally, though it supports Gerdau’s long-steel products more than flat-steel producers like CSN and Usiminas.
05 The names to watch
Gerdau is the most exposed to Brazil’s still-weak construction cycle, making its 1.99% drop the clearest signal of domestic demand anxiety.
CSN and Usiminas, as major flat-steel suppliers to industrial and automotive customers, sit more directly behind Brazil’s anti-dumping duties on Chinese cold-rolled and coated products.
Ternium’s tiny gain suggests investors see Mexico’s tariff wall as credible, even if automakers in the region are not ordering enough to lift prices.
06 The outlook
The setup remains defensive: policy is keeping out some unwanted steel, but tariffs cannot create demand where builders and buyers are cautious.
The next meaningful move likely depends on whether Brazilian vehicle output regains momentum and whether construction activity finally picks up enough to draw down long-steel inventories.
07 What to watch
- Brazil auto output: Production of 268,300 vehicles in September was up 10.2% from a year earlier; a sustained rise would support flat-steel orders.
- Chinese import share: Any rise above 45.4% of regional imports would test tariff effectiveness and pricing.
- Brazil construction activity: Long-steel producer Gerdau needs a pick-up here to reverse its share decline.
- Mexico tariff policy: Any easing of up-to-50% tariffs would expose Ternium to more import competition.
Frequently Asked Questions
Why did Gerdau fall more than peers?
Gerdau is tied to construction demand, which remains weak in Brazil, while flat-steel peers benefit from stronger auto-related tariff shields.
How do tariffs protect Brazilian steel?
Brazil applies a 25% tariff above quotas across 19 steel products and anti-dumping duties on several Chinese flat-steel categories through mid-2027.
What is SLX?
SLX is an exchange-traded fund that tracks steel producers globally; it fell 0.46% to US$101.96 on Thursday.
How is Chinese steel affecting Latin America?
China supplied 45.4% of Latin America’s steel imports in 2025, and that low-priced supply keeps local prices under pressure.
Market data: RT
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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