Fitch Ratings raised its outlook on Brazilian steelmaker Gerdau from stable to positive, based on the company's potential to improve its business profile and profitability in the near to medium term, supported primarily by its stronger presence in North America and the recovery of its operations in Brazil.
In its statement, Fitch said Gerdau has a "strong business profile, resilient free cash flow (FCF) throughout all cycles, a conservative capital structure and a sustainable capital structure. liquidity.”
Fitch also noted that Gerdau's geographic diversification and flexible electric arc furnace (EAF) steel production structure gives the company a competitive advantage and allows it to respond quickly to changing market conditions.
Gerdau is expected to benefit from higher import duties in the US, which should support domestic steel prices, as well as anti-dumping duties on steel imports in Brazil, which should help stabilize the situation, Fitch said. local prices. Prices could rise further if the plates and heat-resistant steel produced by Gerdau in Brazil are included in anti-dumping measures taken by Brazilian authorities.
Gerdau has production facilities in Brazil, Uruguay, Argentina, Peru, Mexico, the United States and Canada.
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