From The Rio Times · Diego Fernández · · 1m 40s
Steel Shares Drop as Gerdau Slips
Steel ETF falls 2.5% as Gerdau drops 2% in Latin American markets.
In brief
Steel ETF falls 2.5% as Gerdau drops 2% in Latin American markets. Steel producers ETF SLX dropped 2.48% to US$102.43 on Wednesday 7 October 2026, with Gerdau falling 1.95% to US$5.02. Originally reported by The Rio Times.
Market movement
Steel shares declined on Wednesday 7 October. Gerdau fell 1.95% to US$5.02, and Ternium 0.98% to US$56.41.
Fund performance
The steel producers fund SLX fell 2.48% to US$102.43 on Wednesday 7 October 2026.
China's steel output
China’s crude steel output fell 3.7% in August from a year earlier, according to the National Bureau of Statistics.
Brazil's vehicle production
Brazil’s vehicle production rose 10.2% in September, the best for the month since 2014.
Mexico's light-vehicle output
Mexico’s light-vehicle output fell 15.1% in September, according to INEGI.
Trade defences
Brazil uses a quota-and-tariff system with a 25% rate above quotas for steel imports.
Import pressure
Alacero projected in November 2025 that imports would reach 39.7% of steel consumption in Latin America in 2025.
Chinese steel imports
China’s share of Brazil’s steel imports fell to about 50% in the first eight months of 2026.
Market outlook
New tariffs or quota changes in Brazil or Mexico would help local steel producers.
Steel output trends
Lower Chinese steel output may mean more exports of cheap steel to other regions.
Regional market impact
The Ibovespa eased 0.74% with negative market breadth on Wednesday 7 October 2026.
What happens next
Trade defences and Chinese export volumes will determine near-term steel market pressure.
The bottom line
Steel producers ETF SLX dropped 2.48% to US$102.43 on Wednesday 7 October 2026, with Gerdau falling 1.95% to US$5.02.
