The Brazilian steel and iron ore producer Companhia Siderúrgica Nacional (CSN) reported in a statement a net loss equivalent to $149.239 million for Q2 2026, against a net loss of $25.168 million in the same period of 2025, owing to high financial expenses driven by elevated interest rates, the company reported in a statement.
Although declining slightly on yearly basis, financial expenses equivalent to $355.786 million were said to be the main reason behind negative profitability, reflecting high interest rates paid by the company.
Net sales revenues increased by 5.7 percent to $2.182 billion, production costs increased by 5.1 percent to $1.622 billion, gross profit increased 7.5 percent to $565.815 million, while operational profits slumped 53.4 percent to $147.163 million.
By volume, domestic sales of steel products increased 9.9 percent to 825,000 metric tons (mt), while steel exports jumped 36.1 percent to 357,000 mt.
Domestic iron ore sales increased by 26.1 percent to 1.346 million mt, while iron ore exports slipped 2.4 percent to 10.503 million mt.
In assessing the contribution of CSN's various sectors to Q2 EBITDA results, mining accounted for 33.5 percent, steel production 22.9 percent, logistics, 19.8 percent, cement, 15.4 percent, and energy, 8.9 percent, excluding exchanges among these sectors.
The company remains under pressure from its high net financial debt, which currently stands at $8.13 billion, or 3.49 times annual EBITDA. Fitch Research, part of Fitch Ratings, a top global rating agency and financial research firm, recently has downgraded CSN's Issuer Default Rating (IDR) rating to CCC+
CSN is selling its cement business, as an alternative to reduce its financial debt, having received proposals this week from Brazilian, Italian and Chinese groups.
CSN reports its results in Brazilian Real (BRL), converted here to USD at a rate of BRL 5.18/USD.
CSN's iron ore mine operator, Casa de Pedra (CAP) will contribute the steel converter area, two rolling mills, 94 hectares of the plant and $130 million in cash, the company said.
