Good morning, everyone, and thank you for joining us at Gerdau's Q3 earnings release. I'm Mariana Dutra, Head of IR. Here we have with us our CEO, Gustavo Werneck, and Rafael Japur, Gerdau CFO. This webcast has simultaneous translation into English, and you can choose the language of your choice by clicking on the globe icon in the bottom part of your screen. During this presentation, all participants will be in listen-only mode, and right after that, we will initiate the Q&A session. Analysts and investors should also be on the queue by using the raise hand icon. All of the forward-looking statements are beliefs from the company based on information currently available. Forward-looking statements are not guarantees of performance and depend on circumstances that may and may not occur. Now, I would like to turn the floor over to Gustavo to begin the presentation. Gustavo, you may proceed. Thank you, Mari. Good morning, everyone, and I hope you are well, and thank you very much for joining us for another earnings release call. We will briefly comment on the highlights of the quarter, and also we will talk about the outlook for our operations, but this time we will allow more time for the Q&A session. First of all, I would like to point out that we ended the Q3 of 2024 with an injury and accident frequency rate of 1.58. It's the best track record in the last, you know, 123 years. I reinforce our commitment to people's health and safety, and as you know, this has always been our priority. We ended the Q3 with an adjusted EBITDA of 3 billion BRL, mainly reflecting the progress of our cost reduction initiatives and the optimization of our assets in Brazil. Even against the backdrop of an oversupply of steel on the world market and uncertainties in the global macroeconomic environment, Gerdau's shipments grew both quarter and quarter and year on year, underscoring the successful execution of our commercial and operating strategy. Speaking about Brazil in particular, we recorded an increase in steel demand in the domestic market in the Q3. Despite the improved domestic demand, our shipments remain impacted due to the excessive steel imports into the country, even with the mixed trade defense system that called a quota tariff or a tariff rate. This has not brought about the expected results, and it should be constantly improved by the federal government. The monthly average of steel imports in the first nine months of 2024 was almost 80% higher than the historical average. We have seen with astonishment a large volume of imported steel entering through cities like Manaus, showing how steel is being rerouted to other regions of Brazil in order to avoid payment of the required import taxes. I will now turn the floor over to Japur for the financial highlights. Thank you, Gustavo. Hello everyone. It's always a great pleasure to be here with you in our earnings conference call. This quarter, we posted net income of BRL 1 billion 432 million, or $0.64 per share, a significant increase of more than 50% compared to the Q2 of 2024. In the same period, we had free cash flow totaling BRL 3 billion. Almost BRL 1.8 billion was due to the withdrawal of the judicial deposit for the lawsuit over the exclusion of ICMS tax from the PIS and COFINS calculation base. Excluding this event, free cash flow generation was approximately 1.2 billion BRL, driven by a higher level of EBITDA, as Gustavo has mentioned, and a significant release of working capital in the period. This significant cash generation enabled us to end the quarter with a leverage of 0.32 times net debt over EBITDA, the lowest level in the last 12 months. Our strong financial performance was recognized by the main rating agencies, which raised the company's rating, reflecting the strength of our balance sheet. Regarding return to our shareholders, including dividends payout and share buyback year to date in 2024, we have a payout on net income of 55%, significantly above the mandatory minimum set out in our bylaws. By the end of October, we had executed around 57% of the buyback program, investing more than 700 million BRL, approximately 2% of the market cap of the company. We also announced the cancellation of approximately 77% of the shares that were repurchased by Gerdau S.A. Moving on to the next slide, I'd like to look at the evolution of our cost reduction initiatives. As we mentioned at the beginning of the call, they were very important to foster our results this quarter. On the left of the slide, we can see that in Brazil, we captured in this quarter 210 million BRL in savings. Still, we believe that there are more opportunities and initiatives to be pursued until the end of 2024. In the other business divisions, we carried out most of the initiatives that were planned, and some of the benefits in our view are already being fully captured and benefiting our results. With the efficiency gains during 2024, it makes us confident that we will achieve our guidance of starting the year of 2025 with BRL 1.5 billion in savings versus the 2023 base. I now turn the floor back to Gustavo, and I'll join you during the Q&A session. Thank you. Okay, thank you. Thank you, Japur. I would like to emphasize that Gerdau is very well positioned to deliver sound results in the coming quarters and that we remain focused on cost discipline and capital allocation. In all the markets in which we operate, there will be the natural impact of the year-end seasonality. Here in Brazil, we remain very attentive to the unfolding of trade defense measures on steel imports, and we have a positive outlook for steel demand, especially coming from the construction industry, whose GDP for 2024 is expected to grow by 4.8%, driven by continued improvement in the real estate segment. For North America, we know that our steel shipments and prices will be temporarily impacted by the slowdown in economic activity, influenced by the presidential elections and the steel imports in the United States, a scenario that should be reversed during the H1 of 2025. With that, we thank you all for your attention, and we look forward to answering all your questions. Thank you, Gustavo and Japur. Now we will initiate the Q&A session. Once your name is announced, you should accept the request that pops up on your screen to activate your microphone and video. So the first question comes from Daniel Sasson from Itaú BBA. You may proceed, Daniel. Good morning. Thank you for this opportunity, and congratulations for your excellent results, especially in the Brazil BD, due to all of your efforts to optimize your assets, and you got more reasonable margins. I see the results are much better than before, so congrats on that delivery. My question, my first question has to do with the US BD, the North America BD. Gustavo, you were just referring to a potential impact in terms of shipments and prices in the US in a shorter period of time. One of your competitors just announced a drop in prices early in this Q4, but could you give me a little bit more color of how much of that comes from slower demand? And I think that led you to change the mix and to change your amount of rebars in your mix. So how much of that competition with imported goods in the U.S. could probably help you? I don't know whether you anticipate any kind of protectionist measure now with the recent election of Trump to the presidency of the country. And my second question, maybe to Japur, is whether you could tell us a little bit about capital allocation. You had a very strong cash generation, even if you exclude the reversal of taxes. So maybe you could tell us a little bit about what's in your mind in regards to an optimal capital structure. Almost 60% of your buyback program was already concluded since it was initiated, or if you think that maybe with Trump's election, you would have a different mindset in terms of your investments in Mexico, or you were still thinking about growing more specifically in the U.S. or maybe Brazil. Maybe you would decide to change the focus. I would just like to understand how this very strong cash position dialogues with investments or probably, you know, shareholder returns. Thank you. Japur, let's split the answer. I will answer the first two questions, the first two topics. First of all, Daniel, you talked about cost reductions. I would just like to say that this cost reduction and the search for greater efficiency that had a positive impact in our results for the quarter, they stemmed from a plan that I think I've been talking to you about in past quarters. So once we talk about these initiatives, all of them are based on very detailed plans. We don't want to talk about wishes or desires that are not backed by very detailed plans. So what happened is that we were very good at executing according to plan, and so this is what contributed substantially to our results in Brazil. Execution has been very efficient of the plan that we have talked to you in previous quarters. North America BD, in general, the results of the election will be quite positive for us. You know, no matter where you look, especially if you look at the main points, certainly, Daniel, the results of the election will be more positive for us in North America. But what happened now prior to the election is that there was a lot of expectation in terms of what would be the final outcome when the polls would say that there would be a more, you know, fierce competition between the two candidates. Clients and all of the business that, you know, work with us were sort of apprehensive, and this affected demand in the previous months. And then that's why we made a decision not to reduce the use of our assets, especially the rolling mill. In order to maintain that, we place a larger amount of rebar in our production mix. This is a flexibility we have in the remaining mills after the sale of our main rebar assets to CMC. So we are making better use of our assets. We think that even if the mix has a lower average profitability due to cost reductions, it's still keeping a very high optimization of the assets. It's still very good for our business, but now we will analyze it in deeper details. What will be the speed of that rebound, especially in terms of steel to our clients? We have to still wait and see what will happen in terms of a stronger rebound. We initially thought that this recovery will be slightly slower. Maybe this will change now because the results of the election were just announced, but all of the fundamentals of that steel segment with all of the federal incentive packages, they are, you know, enforced, and they will be translated into important results. The issue is not whether there will be a recovery or not, because it will take some time until we have a better idea of how fast this will occur. We were closely monitoring the elections, and I think that Japur has more to say about the outcome of the election. So Japur can now answer the part about capital allocation. Hello, Daniel. Now, shedding some light to what Gustavo just said, when we think about the results of the quarter and we compare it with the data from the U.S. economy, we notice that since June of this year, PMI is negative. It's below 50. So this is an indication that demand, especially industrial demand, which is an important market for our merchant production in the U.S., was a bit slower even before the election process that was finalized today. And this is what impacted the prices of merchants in early October, and the prices will be lower. This is what we will see in the coming quarters in terms of prices at the end, and merchant prices represent a significant amount of the mix of products that we sell to the U.S. market. So taking into account these effects, we are projecting lower revenues in the coming months. Also, but when we look at imports, there has been an increase in merchant imports going into the U.S., and this also impacted prices. Now, speaking about the market after this election period, we understand that after, you know, he appoints the main positions of this new administration, we believe that in the H2 of next year, we will have a better outlook, and I'm sure the steel market will be more dynamic, and so this is our initial reading in regards to the outcome of the U.S. election. Now, capital allocation, yes, I was going to go to that. Now, when we think in terms of capital allocation, we are moving forward with our buyback program. We had already the opinion on the exclusion of ICMS from the PIS and COFINS base. So there were buyback executions, and I know that you monitor our reports on a monthly basis, so we started the buyback in September. Therefore, in two months of buyback between September and October, we invested in terms of shareholders' return almost half of all the CapEx for the quarter. That means a significant amount, and this, like earlier today, in terms of dividends, we have more than 25% of payout of our net income. And we understand that as much as our shares are discounted vis-à-vis its peers and in terms of its intrinsic value, once our cash position remains robust, we can go on with our buyback program, and also we can continue investing in CapEx, not only to generate short-term value with the buyback, but also in the long run with the projects that will pave the way towards our future. Our net debt for the long term has not changed. There is no significant change, but we just have to meet our short-term obligations and things related to interest rates and exchange rate. And then that makes us just think about the best way to keep our balance sheet in terms of capital allocation in moments of higher volatility like this year. So thank you, Gustavo. Thank you, Daniel. Thank you. Next question from Mr. Leo Correia with BTG Pactual. Go ahead, Leo. Tudo bem, pessoal? Tudo bem, Leo. How's everything going? Hi, all good. We can see you. Great. Good afternoon. Cost, stress, leverage, dividend, and share buyback, Japur. We have received some questions about this earlier today. I think that the quality of the results is undeniable. There was improvement in the Brazil BD. Nothing to discuss there. Little doubt in the operational and some doubt regarding the pace of the buyback. The deleveraging was very fast in the quarter, numbers converging to 0.3 net debt over EBITDA ratio. There was a non-recurring event, of course, and this was this release of cash that you had, and you mentioned that you started a strong buyback pace in September. So, Japur, should we expect the pace accelerating in the next few months, particularly considering an operational scenario which is a lot more balanced and a high cash position, so I'd like to get some color about the speed of the buyback program. A lot of people that we talked about earlier today, well, they were a bit worried about a level that was below expected in the pace of the program. So that's the first point. Second point, well, still in Brazil, the Brazil BD, a notable improvement, EBITDA margin increasing from 1% to 7%-8%. Some low levels, some quarters go to very strong levels now, EBITDA margin about 17% in the Brazil BD. Of course, that's the result of all the in-house work you did. I'd like to confirm how much of the BRL 1 billion in Brazil is already delivered. If you could break down the percentage that we can analyze the evolution. And where could the margin be in the next quarters? I don't know if you can share that, but we would like to understand what is the new level given a more normalized cost base. These are my two questions. Thank you. Thank you, Leo. I'll let Japur answer both. As regards to share buyback and payout of dividends to shareholders, I'd like to remind you that we have a relevant distribution considering dividends and share buyback, more than 2 billion BRLs year to date until the nine months of the year. We still have more to do until year-end, and we have other obligations that will compete tactically in our day-to-day operational regarding the amounts. There are, for example, some small acquisitions and capital investments we've made, such as the acquisition of the scrap in North America. We had the closing this past week, and this is an investment of 600 million BRLs, give or take 60, about 350, 340 million BRLs, $50 million, and this will consume cash. So we continue tactically with other obligations, and we have to take all that into account in our execution. But yes, we do have the goal of continuing and completing our share buyback program. Once complete, our goal is to cancel the shares that we repurchase. We haven't canceled them fully because part of the shares will be used for our long-term incentives program. But once we complete the program, if the price levels remain substantially discounted with an enterprise value multiple below four times, as we have seen Gerdau trading in recent months, of course, there's no reason why we would not reassess this. Now, thinking specifically about Brazil, I'd like to ask for the help of my team to play the slide on cost reduction on the screen, please. So we try to maintain the same visual identity to facilitate you following the initiatives. In the past quarter, we mentioned that BRL 150 million had been captured in terms of cost reductions. In this Q3, we advanced more. We captured another 210 million BRL, and these are reductions of costs and expenses in our results. We estimated about 400 million BRL in Q2. So more than 50% of what we mentioned to capture in the H2 of the year has already been captured in the Q3. So we understand that this is a good pace to capture these 450-550 million BRL fully still in 2024. And of course, since we started doing this in the beginning of the year, but of course, they build up along the year, the cost base will only be fully captured when we annualize the savings and the gains that we're capturing today. In Q3, captured gains will only be realized either 50% or 25% because you only have one quarter to go. But when I run the whole 2025 with this lower cost base, that is when we are going to fully capture this reduction of having a base of costs and expenses BRL 1 billion lower in 2025 compared to the base in the end of 2023. Basically, this is where we stand in terms of capturing all of these benefits. We don't think, though, that we are going to have significant margin expansions in the coming quarters in the Brazil operation because traditionally that's a period of higher seasonality. We have the holiday season coming up, and of course, this will impact our results, just like annual maintenance downtime that we have both in Brazil and in North America. And Leo, just to add to this detailed explanation by Japur, we will continue to pursue efficiency gains and cost reductions. The market continues to be very fierce. There's this theme about steel imports, which is not resolved, trade defense measures that have not been as effective as we expected. At the same time, that other opportunities can arise next year. So we are in this journey of reducing the Ouro Branco capacity, which is geared for exports. We are on this journey, but things will take time. And perhaps opportunities will arise next year, perhaps to grow a bit the volumes, the exports, the shipments. We have the new phase of the hot rolling mills with adding many more tons. So other factors that may contribute next year to bring us more positive margins. But still, I'd like to say that in terms of profitability and revenue, there are some challenges to be overcome regarding imports. Okay? Excellent. Thank you very much, gentlemen. Thank you, Leo. Next question from Marcio Farid with Goldman Sachs. Thank you, Mariana. Gustavo, Japur, thank you for your time. I have two questions about the two primary markets of Gerdau. I think I have a little bit of a lagging sound. First, in the U.S., a very specific question that we have been debating a lot among the investors, which is related to the spread of structural beams and merchant bars compared to rebar. Historically, this was very low, maximum $50, and now it's at $200-$300 premium. And so what we are wondering is whether the spreads, if the spreads of structural beams go back to the price in the past, this will have a significant pressure on margin. The question is, will the price go back? And if not, what changed structurally to leave the spreads higher for longer? Also regarding Brazil, I think you spoke a little, and Werneck spoke a lot about the levels of very high imports from China, and China achieving new exporting records last month. We saw some attempts in the last 12 months of trying to kind of stop some of these imports, but I'd like to understand where are we in this topic? You were more vocal in the beginning of the year, Werneck, regarding the need to bar these imports. We saw some tariffs coming to the market that, sincerely, we cannot understand how they're helping the market, and it seems to be temporary. It seems that there are anti-dumping discussions also happening. So give us an update of where we stand, what kind of push has been given by the industry, and in this exchange rate scenario, could we think about a more controlled scenario in terms of profitability and price? Thank you. Thank you all, Marcio. I'll start with China. And Japur, you will remember to speak about the exchange rate environment that Marcio mentioned, and you'll speak about the spreads too, okay? But I'll start, Marcio, with China. I'll start saying that any debate about stimuli by the central Chinese government to their economy, etc., etc., none of that will reduce the level of exports. It is an illusion to think that stimuli for civil construction will increase domestic demand for steel in China. This is not going to happen. Whatever they had to build in terms of infrastructure, residential and office buildings, all of that has been built, and they will incentivize the Chinese population using what has already been built. So we have no illusion that this level of exports from China in the next 10-15 years will be reduced. We are not fooling ourselves. We are not considering this as a possibility. In fact, China will continue to export. Their surplus capacity is brutal. The four million tons that Brazil consumes in rebar. In China has a capacity of 400 million tons, 100 times more. So these volumes will continue and will continue penetrating the markets in an unfair way. So this is a reality that we'll need to face. And this has to do with the effectiveness of the trade defense measures and mechanisms that have been adopted to date. It took 12-18 months for the government to adopt the first trade defense measure, this mixed tariff-rate quota system. There was a public speech by both parties, both the federal government and the steel industry, that after four months, a check would be conducted. They would analyze the effectiveness of the mechanisms. In the last four months, it was shown that the mechanism was not effective so far. This mechanism needs to be urgently adjusted, and I would say more deeply, so that it can be effective in reducing the unfair arrival of steel in Brazil. This is a moment of debate with the federal government. In our point of view, this mechanism should suppress this 30% extra volume that arrived. This should end. It should consider just the average imports that we always had in Brazil, more specifically this time window that was considered from 2020 to 2022, and suppress these 30%. We believe that 25% is not sufficient. They need to increase the tariff rate. We believe that these 11 plus the four NCMs, it's too little. It should include the whole array of steel products that are competing in an unfair way, we are being more firm with the federal government so that they can understand in depth and to tell them about this increased imports of steel via Manaus. Manaus has this tax benefit of importing steel for local processing, and we were really scared by this growing imports of steel via Manaus in the four months of the trade defense measures, that was frightening. We asked the federal government to understand this, talk about this, understand if this is abiding by the law. So that's the moment right now. I have to debate this more intensely, understanding that the anti-dumping processes are not fast enough to bring us the defense that we need. This will take 18-24 months to take effect. We need more urgent measures. The most difficult part, which was to adopt a trade defense measure, this was done, but it needs to be fine-tuned so that we can have more significant reduction in this volume of exports from China so that we can continue to have our production capacity in Brazil available to meet the domestic market demands. Japur, you want to add to that and then speak about the exchange rate and spreads? Talking about the exchange rate, overall, 20%-25% of Gerdau costs in Brazil are in dollars. In about 10%-15% of our revenue is in dollars, but most of our local prices depend on the exchange rate given parity rates. So to us, a higher dollar price, when we think about the average price of dollar, last quarter we had a dollar that is now 5%-6% above the average dollar price in Q3. So it's 5%-6% more competitiveness of the Brazilian product vis-à-vis imported ones. So that's an important driver for volumes, shipments, and exports in our domestic competitiveness. I'll go back to your first question about the difference in spreads. To answer that objectively, a number of factors can be taken into account, but it is important to remember the dynamic of supply and demand for the different products. If we trace a timeline of the main investments in steel capacity expansion in the U.S., essentially it was for flats, a minority for longs. But of what is being done for long steel expansion, basically what we have is tons and rebar capacity being produced in the United States. We have very little or practically no investment, no greenfield investment in merchants or structurals. So this is one of the factors explaining this in terms of supply and demand and why we have a difference. Rebar is a more competitive and merchant bars and structurals with a more differentiation right now, which translates into a higher price power in terms of the producers of structurals and merchant bars. A second factor, which is more long-term, is that we felt a significant pressure from inflation on labor in the United States from 2020 onward to date after the COVID pandemic. Higher added value industrialized products like structurals and merchant bars, which increase productivity and the speed of execution of non-residential construction projects, they end up getting a premium and even higher value vis-à-vis rebar, which requires more manual work, more people working in the construction site. I think that these two factors help us explain why is it that we're having a differentiation in price of rebar and structurals and merchant bars higher than in the past, which reinforces how assertive was Gerdau's strategy to focus on these two products in our roadmap and in our portfolio of assets in the North America BD. Super clear, Japur, Werneck, thank you very much. Thank you, Marcio. Thank you, Marcio. Our next question is from Rafael Barcellos with Bradesco BBI. You may proceed. Hi, Mariana. Thank you. Hello, Werneck and Japur. I hope you're well. You can hear me? I have a question. The first question is on the U.S. market, and I would like to hear more about your short-term view. I would just like to understand how do you see this result's trajectory, especially looking at the Q4 and whether it would make sense for us to believe that the Q4 should be worse in terms of margins and that maybe throughout the year 2025, margins will become more stable or even they could improve. And maybe to put this question into a context, in the last few weeks, we've heard some news about a $30 increase on rebar prices in the U.S. And I would just like you to comment on that piece of news and eventually what would be the unfolding of that and what would be the impact for merchants. Now, on the Brazilian market, we've seen some market participants complaining about the increased entry of Egyptian rebar. Could you talk a little bit about the domestic market? I know Werneck, you already talked about that, but I would just like to understand whether things are worsening or this is just a seasonal fact that happens in the Q4. I would just like to get a better feeling about the market or whether this would have an impact on prices. And still talking about Brazil, I would like to hear more about profitability. I know that you've been doing some excellent work in terms of cost reduction and optimization, but you also said that next year you believe that there are other opportunities to improve profitability. Are there other initiatives in your roadmap in addition to the ones that you have already announced, or it will be something more related to the market itself? Okay, Japur, now you start talking about the U.S., and then I will do the follow-up on Brazil. Short-term, usually in the Q4, there is seasonality, especially because in the U.S. there is the issue of climate and the holidays, you know, like Thanksgiving, Christmas, and the New Year. Usually there is a reduction between 5%-10% in the Q4 vis-à-vis the other quarters of the year. Naturally, there is a lower operating leverage. This year, there is an important, you know, maintenance shutdown in our Midlothian. Not only do we have the maintenance shutdown, but also investments that we are doing in our, you know, productivity for the long run. This should also impact our profitability in the North America BD in the Q4. In addition to that, we have the reduction in merchant prices that occurred early this quarter, in early October. In our view, this will have an impact on Gerdau's, I mean, in North America consolidated figures because merchant has a larger weight in our portfolio. We don't think that it will be a full impact of that $120, but we think that that's an important part of that $120 because that corresponds to discounts that have already been in place. With that price reduction, they will not be in place anymore. The net reduction will be lower than that. We estimate that in the consolidated, it will be between $25-$35 depending on the mix. But naturally, we anticipate a pressure, you know, a competition pressure given all of these factors. But we remain very optimistic looking to 2025 and the possible unfoldings from Trump's new administration and a possible rebound of the US economy. We were saying that PMI since July has been in a negative territory, but we believe that this should reverse once we go over the end-of-year seasonality period. Now, in terms of one-off price moves, we understand that price moves for rebars in North America are more related to short-term moves of scrap prices. So there was a change in metallic spread vis-à-vis, you know, what we had in October. So basically, this is just a tactical adjustment in terms of rebar spreads in the North America BD. And Rafael, now speaking about Brazil, you mentioned something very correct, and that is about the Egyptian rebar. I wasn't so vocal about that as much as I was about Manaus. Brazil has a bilateral agreement with Egypt. So it's just understandable that there should be an increase in rebars coming from Egypt. So, I mean, China is exporting, looking for other markets. Therefore, it's just natural that other countries like Egypt and Vietnam, they are exporting a little bit more into the U.S. and to the U.S. and Mexico. They may look for other markets. Eventually, we would see rebars coming through Santa Catarina because of ICMS exemptions. We don't think there will be a continuous flow of rebar influx, but it will continue to come, unlike Manaus. Nobody saw that coming. Therefore, we are already factoring that in. We are already considering that entry, but it won't be substantial enough to complicate the industry of concrete in Brazil, so of reinforced concrete in Brazil. Now, we are seeing rebar and other products related to reinforced concrete. For next year, we understand that in general, next year will be better for the market in general in relation to what is happening this year in 2024, and not only because of market factors that you mentioned. We already have initiatives to reduce costs even further. We are not going to shut down any of our assets with Barão de Cocais and our Cearense mill in the state of Ceará. Our production capacity is in tune with the market reality, so we will not see major initiatives like that, and you also talked about the plan. It's part of our plan for next year to go on and seek for opportunities with raw materials like ore, you know, light energy and other things. We will pursue initiatives that can give us additional profitability. This will come just from the market scenario. I mean, the demand will continue to be very sound. Therefore, our general view in Brazil, even with the entry of Egyptian rebar and all of the other points that we already mentioned, I think we will be able to increase our profitability in Brazil in 2025 when compared to the average of 2024. Perfect. Thank you, Werneck and Japur. Thank you, Rafael. Our next question is from Caio Ribeiro with Bank of America. Thank you. Good afternoon, and thank you for this opportunity. I would like now to talk about special steels in South America. It's very clear that in North America, there was a great, I mean, North America will benefit from the results of the elections. I mean, infrastructure, reshoring, etc. Could you now comment about this dynamic with special steels? We've seen a very healthy demand in Brazil, mainly due to the production of heavy vehicles. But maybe you could give me some color about what you expect looking at the demand in the US based on the results of the elections. In South America, the margin in the past quarters has been flat, around 16%. But that considering higher levels of over 20%. So could you give me some color about what is the expected level or what kind of level you believe to be sustainable and whether you have some cost initiatives that could be adopted for that division that could probably stir up, you know, more changes in this area? Okay, Caio, I think I can answer both of your questions, starting with special steels and more specifically referring to North America. I think that in the U.S., unlike Brazil, where an important part of our production is earmarked for heavy vehicles, in the North American market, our production is earmarked to light vehicles. And this sector is very much dependent on affordability. I mean, can people afford to pay for their vehicles? And this is related to a reduction in interest rates. And this is something recent that we're beginning to see in the U.S. Therefore, we understand that 2025, considering now Trump's administration that will try to boost local production with near-shoring and on-shoring, in our view, there should be an increase in demand in the short term as interest rates start coming down, especially for end users of vehicles. And also, this will bring more incentives to increase local production of vehicles in North America. Now, looking at South America, I would just like to add something about the U.S. This is my thesis. I think that the hardening of the trade agreement between Mexico, Canada, and the U.S. will also probably try to restrict the entry of auto parts because today, especially for replacement parts, they are coming through Mexico, but from Asia. So with the tightening of this trade agreement, and there is a review to that agreement coming in 2026. So in my view, the entry of auto parts will be lower. And this, on the other hand, will lead us to increase demand in the U.S. for our auto parts. I mean, this is my thesis, and I think this will come to benefit our business with the recent outcome of the election. Okay, speaking about South America, I think it's important to remember that in this Q1 of 2023, we divested from the joint ventures we had in Colombia and the Dominican Republic because they came as an equity equivalence. Our EBITDA was stronger in South America because there was a very relevant part of EBITDA that came from that shareholders' equity. So we started the year without that comparison, without that revenue, you know, impacting our result. And the result was without the cash and cash equivalent. So we understand that the margins should vary between 15% to 25% in the long run, the equity because of equity income, especially because of our unit in Argentina. So the market has been more difficult in view of everything that we are seeing in the Argentine economy because they are reducing expenses and they are adjusting the economy to this new inflation level and major actions to adjust the economy. But in the short run, this means that there is a reduction in our shipments in Argentina and that it varies between 40% to 40% in terms of tons or shipments vis-à-vis what we delivered last year. And it's very difficult for you to keep, you know, excellence and good costs once you have lower shipments. But we understand that in the mid-range, this process should go back to normal, and we will try to mitigate these measures through efficiency gains. Perfect. Very good, Japur and Werneck. Thank you, Caio. Thank you, Caio. Next question from Ricardo Monegaglia with Safra. Hello, good morning. Thank you for the good morning. Thank you for the opportunity. I have two very objective questions. One about the cash flow, which was a positive surprise, even excluding the withdrawal of that deposit. So I'd like to explore two things. Working capital, how can we think about the performance of this line item in the next quarter, the next few quarters, considering that there was a reduction in the cash conversion cycle in this quarter? And then about the level of tax, which was way lower than expected in this quarter. So I just want to get a sense of what happened. Was there a different seasonality of payment in this quarter? Anything specific? And how should we think about the reversal of this specific factor, if any? So we can have an idea of how the free cash flow will not move at all in the next quarters? Second question, going back to the United States, I have the impression that the message in the call of the Q2 was that July was also a good month in terms of profitability in the U.S. operation. So could you give us any color regarding the magnitude of margin deterioration along the quarter so we can understand whether we'll start to Q4 at a better level than we were expecting? We can have an idea of the evolution of the margin. Thank you very much. Okay, Ricardo, thank you. Over to you, Japur. Regarding free cash flow, we expect to have a release of working capital in Q4 given the typical seasonality of the year. Lower volumes lead to a reduction in working capital, and we understand that from the standpoint of operating cash flow, this will be good for our cash generation in Q4. On the other hand, in Q4, typically, it is a period that given maintenance stoppages, that's when we have the highest disbursement of CapEx. I'd like to remind you that we have a guidance of about BRL 6 million in CapEx of this year. We have done about BRL 300 million to date in CapEx. That's what's been released. So there might be more CapEx disbursement expected for Q4 this year. When we think specifically about taxes paid, there is one specific detail. Since we operate in different countries, in terms of results, we analyze results quarter by quarter, but the effective payments of income tax in particular take place in different moments in different countries. And also, the tax that companies get back for those payments happen at different moments. So we will pay the payment of our bonds for income tax. It is always difficult, though, to know exactly when payments or restitutions will take place because every country has different moments for that. Normally, in the H2 in April, we have a greater payment of taxes in North America and another high payment in the end of the year. And in the rest of the year, we don't have such great payments in North America regarding payment of taxes. Thank you, Ricardo. Next question from XP. Lucas Laghi. Hello. Good afternoon. Thank you for taking my questions. How are you doing? All good? Well, you know, I have some follow-up questions. One on North America and one on the Brazil operation. But Japur, regarding North America, perhaps you could give us a better idea of the impact that we saw of this adjustment of the value of inventories and also thinking about the cost structure in North America for the Q4. It became very clear the effects expected in terms of volume and price for Q4. But is there anything we should pay attention to regarding cost? There was an additional cost in Q3 related to downtime and also the valuation of inventories. We want to try to understand that better. But is there anything for Q4 that we are not considering, that we are not mapping, that we should keep in mind in terms of the cost structure for Q4? So that's the US. And looking at Brazil, the scenario seems more positive when we look at the demand for longs, less impacted by the imported volume, although there was this acceleration of rebar from Peru and Egypt. But I'd like to understand how you see the capacity of the industry. We have seen some increases or longs. And is this something that you see as a risk for 2025, or is this gradual with less impact? But this increased industry capacity is something we would like to hear you talk a little about so we can understand 2025. Japur will speak about inventories, but let me see if I understood your word that we are not going to have capacity to meet the demand of the industry. I want to understand the cost impact in terms of the reassessment of the value of inventories that we had in Q3 and the impact on the margin to understand how to forecast looking forward. But in the second question about Brazil, of the impact of capacity increase from your competitors, not from Gerdau. Oh, okay, understood. Okay, Lucas. Well, typically, in some specific products, when prices drop faster than cost, we have to run a test every quarter in terms of the net value of realization comparing the price I have in my product and the price I have in my inventory. It was not a representative impact to explain the lower margin of the quarter. We understand that this is how we do the accounting of our inventories and the value of our products. It should not affect materially the result in Q4. What, however, can impact our costs and our operating leverage structure in the coming quarter is the typical seasonality we have in the period, as I mentioned before, 5%-10% less volumes typically in Q4 when we look at the historical series and when we compare the shipments and volumes delivered. Typically, that's the level of oscillation that we see. In addition, we have some maintenance downtime in particular, significant stoppage at Midlothian. And a part of these expenses with downtime will have an effect on our result and will put a little pressure on our competitiveness. At the same time, we realize that from the standpoint of raw materials in recent months, the cost of scrap was lower than we had in the H1 of this year. We understand that along Q4, part of this benefit of a cheaper scrap, which is already in our inventory, should also translate into a variable cost of metal that will be lower in Q4 compared to what we had in Q2 and Q3. Lucas, talking about Brazil, your concern about supply and demand for 2025 is not a concern for us. In terms of new capacity, for us, we have 250,000 tons of coiled hot rolled strips or hot rolled coils starting in January. We're very sure that this additional volume will be delivered to our captive customers, to our direct customers, through direct delivery of the mill or via Gerdau commercial department. We have no concerns about that. We believe that the capacity for longs will be balanced. There are some marginal capacities being added, but we have heard that players are postponing some projects of theirs. So we have to think about the imported products. If that continues to grow, that can impact the whole equation. Put it differently, the growing demand for longs, if it is going to be supplied by imported products, if the imports remain as they are, then we will continue to have this difficulty that we have been facing in recent months. But overall, that's not a greater point of concern for us. Okay, thank you very much. Thank you, Lucas. Next question from Eugenia Cavallero with Morgan Stanley. Good morning, Gustavo. Good morning, Rafael. Thank you, Mari. I have two questions for you. One is about the minimum level of cash that you would like to have in the balance sheet. The cash increased this quarter. There was an important inflow. I just want to get a sense of the level you would like to have looking future, looking forward. What kind of level of leverage you feel comfortable with? The leverage is very low for the company right now. I would like to understand what is the expected level for the next quarters. As regards to South America BD, do you have any different outlook than what was explained in the Investor Day? In In this month after the Investor Day, has anything changed in each one of the countries? Thank you very much. T hank you, Eugenia. I think that as regards our optimal capital structure, there is no structural change at this point. We might revisit this given this greater fluctuation in the exchange rate in the H2 of the year, considering that we had a gross debt of BRL 12 billion and a cash of about BRL 6 billion. At the time, we had a dollar rate about 3.94 BRL. Now it's a totally different reality. Of course, we have a new reality for the company as well. But at this moment, we are not making any changes regarding our target cash structure. In terms of leverage, we have a limit, not more than 1.5 times net debt over EBITDA, and we are way below that level right now. I'd like to remind you that this is not a target of leverage, but the top level, the maximum given our discipline for the approval of CapEx and disbursements for our obligations. Moving on to the second question about South America. I don't think that there was a significant change regarding what we presented in the Investor Day for South America. We do have a slower, more gradual resumption in the level of activity of the economy in Argentina. And in September, we already saw some signs of a faster resumption of the Argentine economy compared to prior quarters. But we realized that in the rest of Q3, that this is going to be a recovery of the civil construction sector and other sectors that consume steel, recovering more slowly than we expected initially. Super clear. Thank you very much. Thank you, Eugenia. Nossa próxima pergunta aqui é do Igor Guedes, da Genial. Igor, pode ir para seguir. Our next question is from Igor Guedes from Genial. You may proceed. Good afternoon. Well, thank you for taking my questions and congrats on your results. We've seen your strategy to earmark your shipments to Brazil BD, and in the past, you said that this would happen right now in the Q3, mainly because the exchange rate is more favorable, so you would then focus on exports, and now with Trump's election, the exchange rate is higher today, and today, things in Brazil are not very good. Our domestic market is not very good. Therefore, maybe we should expect an exchange rate to be higher in the coming months. Should we consider the fact that you would also increase your exports in your Q4 and into 2025? And if yes, what kind of mix of products do you think that you would export, and you would have a mix with higher added value, or you would also focus on semi-finished? My second question, again, speaking about the exchange rate, and I know that Japur already talked about that when he answered Farid's question, but I would just like to get a bit more details about the exchange rate impact on costs. Maybe a higher exchange rate could favor a risk downside to reduce costs on the Brazil BD, or is there a very specific reliance on dollar-denominated inputs in your cost structure? We know that some mills are very dependent on scrap from third parties, and the exchange rate has impacted industry in general. So is this your case, or what kind of inputs would be higher, I mean, more impacted by this higher exchange rate? To answer your question, I mean, I will talk about costs later on, but we can get more details from our IR team, especially, you know, when we look at our modeling guidance, and you get more details. But let me just answer your question about exports. We had a significant volume of shipments this quarter for exports, as we mentioned before, especially given what we indicated last quarter. We understand that at this dollar level, we are beginning the quarter with an exchange rate which is 5%-6% higher than what we had last quarter. Therefore, we are better positioned to be more competitive with exports. We are, at the same time, reducing our costs vis-à-vis what we have in the second and Q3s, and we have a better exchange rate that favors exports. That's why we do understand that there is still room for us to grow our exported volumes from Brazil, and given that, maybe we will export more flats or products with higher added value. This is a concrete possibility given this new exchange rate, and maybe we thought at first that this will be transitory, but today, you know, taking another look at it, we think that this will be the case for longer. Now, referring to the cost structure within our Brazil BD, the main inputs we have that are denominated in U.S. dollars are iron ore because we buy that from third parties. Eventually, it's not paid in dollars, but pricing has to do with the international price of our iron ore. So it is as though it is dollarized, even though we do not charge it in U.S. dollars, and the imports of metallurgical coal. We do, we have to buy that to do the clearance of imports. This mix, if you think in terms of how much production that we have from our integrated plants and plants that are scrap-based, about 25% of our costs are quote-unquote denominated or paid in US dollars. Now, when we think of our program to reduce costs and expenses, we usually say that these are expenses and costs that are controllable. Everything that refers to maintenance costs, fixed costs, consumption of very specific materials, we can control all of that through our efficiency and competitiveness. So all of that is factored into this calculation. Variations of scrap, iron ore, and coal is not part of that savings of costs and expenses of about 1 billion BRL that we project for the Brazil BD for 2025 when compared to 2023. Therefore, we do not understand that a higher exchange rate could eventually pose a risk to our competitive efforts in our BD, Brazil BD. So if you have other questions, you can do a follow-up with our IR team. Thank you. It's very clear. Thank you. Thank you, Japur. Mari, thank you, Igor. Thank you, everyone. And with that, we conclude our Q&A session. I would like to thank you all for joining us, and I'll turn the floor back to Gustavo for his final remarks. Well, thank you. Thank you, Mari, for organizing this earnings conference call. And on behalf of Japur and myself, I would like to thank you again for joining us. It's always a great pleasure to talk to you. I would like to take this opportunity to invite you to our next results video conference for the Q4 of 2024, which will be held on February 20th, 2025. Thank you all very much, and take care.