From The Rio Times · Diego Fernández · · 2m
Steel Fund Drops 3.29% as Ternium Falls 6.04%
Latin American steel stocks tumble as China's dominance and Mexican tariffs weigh on producers.
In brief
Latin American steel stocks tumble as China's dominance and Mexican tariffs weigh on producers. Latin American steel producers fell 3.29% on Thursday as Ternium dropped 6.04% amid China's 45.4% steel imports and Mexican tariffs. Originally reported by The Rio Times.
Steel Fund Falls 3.29%
The SLX steel fund fell 3.29% to US$99.96 on Thursday 22 October 2026, its weakest close of the week.
Ternium Drops 6.04%
Ternium lost 6.04% to US$55.36, CSN’s New York shares fell 5.45% to US$1.04 and Gerdau lost 3.24% to US$5.07.
Brazilian Markets Decline
In São Paulo, CSN fell 5.43% and Usiminas 4.81% as Brazil’s Ibovespa lost 1.15%.
China's Steel Import Share
China supplied 45.4% of Latin America’s steel imports in 2025, according to the steel association Alacero.
Mexican Tariffs on Imports
Mexico has charged tariffs of up to 50% on 1,463 product lines from countries without a trade deal since 1 January 2026.
Market Assessment
Steel shares fell with the broad market, with Ternium, CSN and Gerdau all down more than 3%. Import competition from China remains the structural drag.
Key Market Moves
The Nasdaq fell about 2.6%, an oil rally raised inflation worries and investors sold cyclical shares, which include steelmakers.
Brazilian Steel Producers
Brazil’s flat-steel producers, such as CSN and Usiminas, compete most directly with Chinese coated and cold-rolled imports.
Mexican Producer Exposure
Mexican producers face softer domestic demand even with tariffs in place, and Ternium’s fall of 6.04% shows how exposed its shares are to that mood.
What to Watch Next
Investors should watch whether the shares recover on Friday and how Brazil’s election result on Sunday affects domestic cyclical stocks.
Near-Term Outlook
The near-term path depends on global risk appetite. A rebound in technology shares would probably help steel shares first.
Long-Term Test
The longer-term test is whether tariffs and local demand can lift margins while Chinese exports stay high.
The takeaway
Latin American steel producers fell 3.29% on Thursday as Ternium dropped 6.04% amid China's 45.4% steel imports and Mexican tariffs.
