Vale SA (ADR) (VALE), Gerdau SA (ADR) (GGB): 3 Companies That Will Benefit From Brazil’s Currency Depreciation

The three companies mentioned above have a lot to gain from the depreciation of the Brazilian real. Even if the impact on Gerdau’s EBITDA is significantly smaller than in the cases of Braskem and Vale, the steel company should largely benefit from diminished competitive pressures, the reason being that imports will be significantly more expensive in local currency terms if the real loses even more value. My favorite pick among this three companies is Braskem, however. While the company does not depend on international markets to sell its products (like Vale), it sells everything at international prices, which are denominated in U.S. dollar terms.