Brazil Keeps a 25 Percent Steel Tariff to 2027 as Mill Shares Rise
Key Facts
- The country — Brazil is Latin America’s largest economy and its biggest steel producer, with mills such as CSN and Gerdau supplying construction and industry at home and abroad.
- The rule — Brazil charges a 25 percent tariff on steel imports above set quotas, across 19 product categories, and that regime now runs to June 2027. Mexico taxes steel from countries without a trade deal at up to 50 percent.
- The pressure — China supplied 45.4 percent of Latin America’s steel imports in 2025, with import penetration at a record 40.4 percent, according to the regional association Alacero.
- What happened — Latin American steel shares split along national lines on Tuesday 22 September 2026. Brazilian producers rose in New York while Mexico’s Ternium fell for a second straight session.
- The numbers — CSN gained 0.85 percent to US$1.18 and Gerdau 0.40 percent to US$5.02, while Ternium slipped 0.72 percent to US$56.43. The SLX steel ETF closed up 0.61 percent at US$106.73.
- What it means for you — If you invest in Latin American industrials, tariff protection rather than strong demand is holding margins. The moves were company and policy specific, not a broad steel rally.
- Still open — What happens when Brazil’s quota regime expires in June 2027. Ternium’s August 2026 results called Mexican fundamentals strengthening and Brazilian demand uneven.
Today’s Focus
Trade date: Tuesday 22 September 2026. Latin American steel diverged in that session.
Brazilian producers Gerdau and CSN advanced, while Mexico’s Ternium slipped after a strong run earlier in September 2026.
CSN’s depositary receipts led the Brazilian charge, up 0.85% to US$1.18, while Gerdau added 0.40% to US$5.02. Ternium eased 0.72% to US$56.43 even though Mexico taxes steel from countries without a free-trade deal at up to 50%.
The global steel basket, the SLX ETF, closed at US$106.73, up 0.61%. That points to a modestly firmer worldwide tone, making CSN’s outperformance look company- and policy-specific rather than part of a broad rally.
The structural story has not changed: tariffs give Latin American mills room to price. Alacero puts China at 45.4% of the region’s steel imports in 2025, with import penetration at a record 40.4%.
What matters today. Brazil’s quota regime now runs to June 2027. Ternium says Mexican steel fundamentals are strengthening rather than weakening.
01 The session in one read
Latin America’s listed steelmakers split along national lines on Tuesday, September 22, 2026. Brazilian names rose, while Mexico’s Ternium slipped for a second straight session.
The moves were not part of a powerful global steel surge. The SLX steel-producers ETF closed at US$106.73, a gain of just 0.61%.
Brazil and Mexico have both built protection against cheap Chinese flat steel. In its August 2026 results Ternium called Mexican fundamentals strengthening and Brazilian demand uneven, with weaker agricultural-machinery orders. The variable to watch is Brazil’s quota regime, which Gecex has renewed only as far as June 2027.
02 The board
CSN’s American depositary receipts, representing the Brazilian flat-steel and iron-ore producer, finished at US$1.18, up 0.85%. Gerdau, Latin America’s largest long-steel maker, closed at US$5.02, a rise of 0.40%.
Mexico’s Ternium, which runs mills across Mexico, Brazil and Argentina, fell 0.72% to US$56.43. The company reports in US dollars and draws revenue from several Latin American economies.
| Asset | Level | Change |
|---|---|---|
| Steel (SLX ETF) | US$106.73 | +0.61% |
| Gerdau | US$5.02 | +0.40% |
| CSN (ADR) | US$1.18 | +0.85% |
| Ternium | US$56.43 | -0.72% |
Source: RT end-of-day prices, New York close, Tuesday 22 September 2026. Where a commodity has no spot feed, an exchange-traded tracker or leading producer is shown as a labelled proxy.
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 187,422.92 | +0.44% | +21.85% | 186,595.60 | 168,310 | 167,142 | — |
| IPSA | 11,426.83 | +0.61% | — | 11,357.82 | 11,210 | 10,984 | 1,513,213,483 |
| IPC MEX | 64,456.59 | +1.45% | +12.17% | 63,536.96 | 66,121 | 65,405 | 108,886,187 |
| MERVAL | 2,997,659 | -0.04% | +30.51% | 3,022,485 | 3,042,365 | 2,991,150 | — |
| COLCAP | 2,588.64 | +0.90% | — | 9.04 | 9.05 | 9.02 | 4,133 |
| BVL PERÚ | 59,529.36 | +1.84% | — | — | — | — | — |
| 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 | — |
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| 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 | — |
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03 What moved it
Brazil’s trade framework is the clearest driver for the domestic names. Gecex, the executive committee of the foreign-trade chamber Camex, taxes above-quota steel imports at 25% across 19 product categories.
That regime runs through June 2027, a renewal Ternium noted in its August 2026 results. Those barriers help CSN, which competes directly with imported flat steel.
Mexico’s tariff reform, in force since 1 January 2026, covers 268 steel tariff lines at rates from 5% to 50%. Most steel lines carry 35%, with the top 50% rate reserved for selected products.
04 The Latin American read
The tariff walls are high, but they have not stopped competition. Alacero, the regional steel association, put China at 45.4% of Latin America’s steel imports in 2025.
Alacero’s final 2025 figures put imports at 40.4% of apparent consumption, the highest on record. For investors outside the region these shares are a policy-plus-demand call, not a simple China-exit story.
Gerdau benefits from Brazil’s construction cycle, while CSN’s flat-steel division leans on automotive and machinery production. Ternium reported in August 2026 that Brazilian automotive and infrastructure-equipment demand was resilient, offset by weaker agricultural-machinery orders.
05 The names to watch
CSN is the purest tariff play of the three. Its flat-steel lines compete directly with Chinese plate and coil, so any change to the quota regime matters disproportionately.
Gerdau is the construction proxy. Its rebar and structural sections track Brazilian building and civil-works orders rather than global flat-steel margins.
Ternium is the regional trade. Its Brazilian operations enjoy the same tariff umbrella as CSN and Gerdau, while the company expects Mexican shipments to keep recovering.
06 The outlook
CSN carries more torque than its peers because its earnings are finely geared to Brazil’s industrial cycle. Gerdau offers a steadier construction-linked cash flow.
The main risk is policy slippage: if Brazil waters down the quota regime before June 2027, the case for CSN and Gerdau weakens. Ternium said in August 2026 that it expects higher third-quarter shipments, helped by import substitution at Mexican carmakers.
07 What to watch
- Mexican shipments: Ternium expects them to keep recovering in the third quarter of 2026, helped by import substitution.
- Brazil’s quota regime: the 25% above-quota tariff through June 2027 is the central support for CSN and Gerdau.
- Chinese import share: Alacero puts China at 45.4% of the region’s steel imports, keeping pressure on local pricing.
- Brazilian farm machinery: Ternium flags it as the weak spot in an otherwise uneven Brazilian steel market.
Frequently Asked Questions
Why did CSN rise on Tuesday?
CSN rose 0.85% to US$1.18. Brazil’s 25% above-quota tariff, which runs to June 2027, shields the flat-steel lines that drive its earnings.
Why did Ternium fall while Brazilian steelmakers rose?
Ternium fell 0.72% to US$56.43, a second straight daily decline after closing at US$58.09 on 17 September 2026.
Do tariffs keep Chinese steel out of Latin America?
No. Alacero put China at 45.4% of Latin America’s steel imports in 2025, with import penetration at a record 40.4%.
Is the SLX a good way to track Latin American steel?
Only partly. The SLX is a global steel-producer basket and closed at US$106.73 on Tuesday, up 0.61%; Latin American moves are often driven by local tariffs and demand rather than the global tape.
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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