Cap Jumps as New Chile Tariffs Make Steelmaking Profitable Again

Chilean steel and iron ore producer Cap SA rose the most in two weeks after authorities slapped tariffs on some Chinese steel products, in a move that prompted the firm to overturn a decision to shutter its mills.

Cap will benefit from duties of 34% on steel balls and 25% on the bars used to make them. In March, the Santiago-based company announced plans to cease steelmaking due to an influx of cheap shipments from China, whose mills continue to churn out steel despite slower domestic demand.

The measure, which expires in September, would allow Cap’s steel unit to remain ...