By Brazil Stock Guide – Companhia Siderúrgica Nacional (B3: CSNA3) signaled a turning point for Brazil’s steel industry, supported by cost discipline, trade-protection measures, and stronger operational efficiency. Benjamin Steinbruch said the third quarter was “exceptional on the operational front and in cost reduction,” while commercial director Luis Martinez noted that CSN is on track to close 2025 with double-digit EBITDA margins, sustained by a leaner cost base and gradual demand recovery.
Production Costs and Competitiveness
According to Martinez, CSN is moving toward a steel slab cost of around R$3,000 per ton in the fourth quarter — a level that enhances competitiveness against global peers. The company also expects the antidumping measures on coated steel materials, which may adjust domestic prices by 5% to 7.25%, to help restore profitability. “With the antidumping policy in place, we believe we’ll deliver double-digit margins by year-end,” he said.
Operational Efficiency and Cost Reduction
Steinbruch emphasized that CSN “continues to work on cost reductions across its steel operations” and on maximizing production. These efforts, he said, are part of a long-term agenda involving modernization, productivity gains, and tighter logistics integration. “We are operating correctly to maximize output and reduce costs,” he stated, noting that strong industrial performance helped the company navigate a period of global credit turbulence without compromising cash generation.
Signs of Recovery in the Steel Cycle
CFO Marco Rabello said this is “the first time in a long while” that the company sees a clear improvement in industry outlook, after years of margin pressure and volatile demand. Although cautious, he believes “the worst phase in steel is now behind us,” reflecting a more balanced demand environment and firmer prices in both domestic and export markets.
Infrastructure company
CSN is also in an advanced stage of creating a new infrastructure company that will consolidate the group’s logistics and port assets, expected to be completed by mid-2026, Rabello said. The move should generate billions of reais to help lower the group’s R$37 billion debt. “The group has seven assets that will migrate to this operation,” Rabello told analysts, noting that the plan “is very advanced and will bring additional liquidity.”
CSN owns a wide range of infrastructure assets, including the Transnordestina railway, ports in Rio de Janeiro, and a stake in the freight carrier MRS Logística. According to Rabello, several investor groups have shown interest in the CSN Infraestrutura vehicle, and formal announcements are expected in the coming weeks.
A More Stable Phase Ahead
With gradual price recovery and reduced currency pressure, CSN believes Brazil’s steel market is entering a more stable and profitable phase. The company remains focused on efficiency and deleveraging but sees room for sustainable growth in steel operations, backed by a solid cost base and a more rational competitive landscape. “We’re seeing a more predictable environment that allows us to plan ahead with confidence,” Steinbruch said.
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