Strong position in the Brazilian and U.S. long steel markets; Product diversification into flat steel and iron ore, as well as geographic diversification in other Latin American countries and in India; Strategically located network of mini-mills to secure scrap metal supply; and Exposure to market downturns in Brazil and intense competition in the U.S., which has affected margins. Still weak market conditions are slowing expected deleveraging in 2017; Exposure to foreign currency in debts and costs, mostly compensated by dollar-denominated revenues; and Expected positive free cash flow generation in 2017 of over R$1 billion. The negative outlook reflects that although Gerdau S.A. has been able to improve its metrics, it will still be a challenge for it to deleverage and
