Brazilian steelmakers Gerdau and Companhia Siderúrgica Nacional (CSN) advanced on Wednesday, August 26, 2026, as Latin American tariff regimes continued to shield domestic producers from cheaper Chinese imports, though global sentiment on steel remained cautious. Gerdau's New York-traded shares rose 2.29% to US$4.46, marking the strongest performance among Latin American steel names. CSN's American depositary receipts added 0.98% to US$1.03 in a modest recovery.
Mexico-focused steelmaker Ternium drifted 0.13% lower to US$55.13, while the global steel-producers fund SLX ETF slipped 0.28% to US$108.60, underscoring broader caution in global steel sentiment. Brazil's 25% tariff on above-quota imports of 19 steel products, renewed in late May through June 2027, remains the primary price floor for domestic mills. The levy is particularly effective in protecting long-steel products like rebar and wire rod, which represent Gerdau's core business.
Investors rewarded Gerdau's construction-linked exposure because construction demand, while not booming, is holding up better than the auto and appliance markets that depend on flat steel. CSN, Brazil's leading flat-steel producer, continues to benefit from anti-dumping duties on Chinese cold-rolled and coated sheet, though the company faces ongoing pressure from cheap Chinese coils despite existing trade protections. The company's tentative 0.98% gain to US$1.03 reflects only modest relief from these anti-dumping measures.
Mexico operates a more aggressive tariff regime, with duties reaching up to 50% on 1,463 products from countries without a free-trade agreement, including steel, effective since January 2026. Mexico also maintains a 25% non-FTA steel levy that has stood since August 2023. Ternium's near-flat close suggests the company is gaining market share against imports while balancing nearshoring-driven factory demand against a steady flow of cheap Chinese steel.
Mexican overall steel consumption remains below 2023 levels despite the positive nearshoring pipeline. The session's mixed tone reflects investors weighing tariff protection against weak domestic construction and auto order books in Brazil. Tariff walls are holding but not winning, with flat-steel margins remaining vulnerable while long-product producers find steadier footing.
The key variable to watch is monthly import volume data into Brazil and Mexico for signs that Asian rerouting through third countries such as Vietnam or Turkey is accelerating, which could undermine the effectiveness of existing tariff protections. Source: Rio Times, August 27, 2026
Source: riotimesonline.com