Americas steelmakers credit tariffs, trade defenses for stronger markets

Trade protection measures for improving steel market conditions across the Americas, steel producer executives said on second-quarter earnings calls.

US steel producers have broadly backed US President Donald Trump's 50% steel tariff, which was imposed in June 2025 and has driven up domestic prices and suppressed imports. Producers in Brazil and Mexico have also applauded the steps taken by governmental officials to stem the flow of imports.

The US-Mexico-Canada Agreement (USMCA) also remains top of mind, with producers optimistic a deal will be reached.

Meanwhile, the decrease in imports has helped boost domestic steel markets, supporting higher pricing and demand in the second quarter.

"Government measures against unfair trade are already helping steel volumes recover, and the country continues to strengthen its trade defenses," Maximo Vedoya, Ternium SA CEO, said on an Aug. 5 earnings call. Ternium operates steel sites in the US, Mexico, and Brazil.

The company reported 2.1 million metric tons of steel product shipments from its Mexico segment in the second quarter of 2026, up 16.7% from 1.8 million mt from the second quarter of 2025.

"The impacts are real and they are measurable," Leon Topalian, Nucor Corp. CEO, said on a July 28 earnings call. "Vigorous enforcement of our trade laws is helping level the playing field for domestic producers by curtailing the flood of unfairly traded steel into the US market."

Nucor reported a record total of 7.1 million short tons of steel shipments for the second quarter of 2026, up 9.7% from 6.5 million st in Q2 2025.

However, imports remain a challenge for steelmakers in Brazil despite lower steel imports levels, according to Gustavo Werneck da Cunha, Gerdau SA CEO. Gerdau has assets in North America, Argentina and Brazil.

The company is awaiting the outcome of antidumping investigations into long and flat steel products, which is expected in the second half of 2026, da Cunha said on an Aug. 5 earnings call.

Gerdau reported 1.4 million mt of steel shipments from its Brazil assets in the second quarter of 2026, slightly less than the second quarter of 2025. Meanwhile, the company reported 1.6 million mt of crude steel production from its Brazil assets, up 10% from the second quarter of 2025.

Higher pricing

Lower import levels in Brazil allowed for higher domestic steel pricing, in addition to higher sales levels, Antonio Marco Campos Rabello, CFO at Companhia Siderúrgica Nacional (CSN), said on an Aug. 13 earnings call.

CSN reported 825,000 mt of steel sales in the Brazilian market in the second quarter of 2026, up 10% from 750,000 mt in the second quarter of 2025

"The result of this more favorable dynamic with 10% of expansion of sales in the domestic market more than offset the slowdown in steel," Rabello said.

Ternium saw higher realized steel prices, specifically in Brazil and Mexico, which contributed to the company's second quarter financial results, said Pablo Brizzio, Ternium CFO.

The company saw a net income attributed to equity holders of $344 million in the second quarter, up 60% from $215 million in the quarter-year prior.

Platts, part of S&P Global Energy, assessed Mexican domestic hot-rolled coil at 16,712.5 pesos/mt ($986/mt) on Aug. 21, delivered Northeast Mexico, up 23.7% from 13,510 pesos/mt ($797/mt) on Aug. 22, 2025.

The HRC Brazil Dom Prod Ex-Works Taxes Excluded Weekly was assessed at 4,075 reais/mt ($790.7/mt) on Aug. 25, up 14.8% from 3,550 reais/mt ($688.8/mt) on Aug. 22, 2025.

Steel Dynamics, Inc. saw a steel average external sales price of $1,298/net ton in the second quarter of 2026, up 14.5% from the second quarter of 2025. Net tons are equivalent to short tons.

The company reported a net income attributable to Steel Dynamics of $534 million in the second quarter of 2026, up 78.6% from the year-ago quarter.

Nucor also saw higher average selling prices, reporting an average external steel sales price of $1,145/nt in the second quarter, up 10% from $1,041/nt in the second quarter of 2025. The company reported net earnings attributable to Nucor stockholders of $1.16 billion in Q2 2026, 91.7% higher than in the second quarter of 2025.

Platts assessed the TSI US HRC EXW Indiana price at $1,200/st on Aug. 27, up 46.3% from $820/st a year ago.

USMCA negotiations

Although the US, Canada and Mexico have not reached an agreement to renew the USMCA, Gerdau doesn't anticipate any additional risk to the company as talks between the three countries continue, according to da Cunha.

"I think that the way things are going will lead us to see more positive news rather than negative," da Cunha said.

On July 1, the US announced that it would not agree to renew the USMCA in its current form, triggering annual reviews over the next decade as the three countries continue to negotiate proposed changes.

However, an agreement between Mexico and the US can be reached, according to Vedoya.

"What Mexico is asking is to get rid of the 232 between Mexico and the US, and US is asking to put more tough trade measures in Mexico," Vedoya said. "As I said, both are quite good and both have reasons to ask that."