Kimi Raikkonen says it's too early to predict whether Ferrari will beat Mercedes in 2017 but admits they're in a "much stronger position" than a year ago.

The Scuderia impressed at Winter Testing and topped the timesheets, but have been preaching caution after making a similarly strong start in pre-season last year before enduring a winless campaign.

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But Raikkonen, whose 1:18.634 was 0.7s quicker than the next fastest car in Barcelona, says Ferrari have made a step forward with their SF70-H and praised his team's work.

"There are a few small issues but if we look a year ago, we are in a much stronger position," the experienced Finn said. "The car is very reliable, you expect small things to be happening when you are pushing the car to the limit. The guys have done an amazing job.

Sky F1's David Croft is joined by journalists Jon Noble and Chris Medland for this F1 Report - Testing Special in Barcelona. Sky F1's David Croft is joined by journalists Jon Noble and Chris Medland for this F1 Report - Testing Special in Barcelona.

"Our first feeling is it's nice to drive. Are we going to be fast enough in the races? I don't know. It's early days still but compare one year ago to here, we have to be positive with how we have gone forward as a team and as a group."

With the season-opening Australian GP less than two weeks away, Ferrari's early season pace means they are expected to be Mercedes' main challengers in Melbourne.

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Indeed, Lewis Hamilton has already claimed the Italian outfit, without a constructors' title since 2008, are the favourites while Valtteri Bottas admitted Mercedes "can't be confident" about sealing a fourth straight crown this year.

However, Sky Sports understands the Silver Arrows were running a lower engine mode on their W08 at testing and were losing around 0.6s per lap. Indeed, Raikkonen's team-mate Sebastian Vettel insisted Mercedes are still the team to beat.

"Mercedes are still very fast if you look at their long-run pace," the German said. "Historically, look at how slow they go in testing before ramping it up for races."

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