Geographic diversification Strong market share and cost position in Brazil Wide product scope in long steel products Growth strategy based on acquisitions and high capital expenditures The cyclical and capital-intensive nature of the steel industry A still-challenging economic situation in the U.S. and Europe Standard&Poor's Ratings Services' ratings on Gerdau S.A. reflect the company's adequate geographic diversification throughout the Americas and privileged cost position in Brazil arising especially from its strong bargaining power in scrap procurement. Moreover, the company's operations are flexible, as shown during the challenging market conditions of 2009. Gerdau's exposure to the cyclical, commodity-oriented, long-steel industry, and its acquisitive growth strategy partially offset the positive factors. The company holds a strong market position in Brazil
