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INVENTORIES
 12 Months Ended
Dec. 31, 2024
Notes and other explanatory information [abstract]  
INVENTORIES

 

6.INVENTORIES

 

     
      Consolidated
  12/31/2024   12/31/2023
Finished goods 4,250,175   3,856,491
Work in progress 3,976,448   3,316,396
Raw materials 2,845,578   2,607,079
Storeroom supplies  1,255,176   1,225,963
Advances to suppliers 23,463   85,623
Provision for losses  (149,927)   (121,871)
  12,200,913   10,969,681
       
Classified:      
Current 10,439,741   9,557,578
Non-current (1) 1,761,172   1,412,103
  12,200,913   10,969,681

 

(1)Long-term inventories of iron ore that will be processed when implementing new beneficiation plants, which will generate Pellet Feed as a product. The start of operations is scheduled for the fourth quarter of 2027.

 

The changes in expected losses on inventories are as follows:

 

     
        Consolidated
    12/31/2024   12/31/2023
Opening balance   (121,871)   (96,493)
Reversal/(Provision for losses) on inventories with low turnover and obsolescence  (28,056)   (25,378)
Closing balance   (149,927)   (121,871)

 

Accounting Policy

 

They are recorded at the lower of cost and net realizable value. Cost is determined using the weighted average cost method in the acquisition of raw materials. The cost of finished products and work in progress comprises raw materials, labor, other direct and indirect costs (based on normal production capacity). The net realizable value is the estimated selling price in the normal course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Estimated losses in low turnover or obsolete inventories are constituted when considered necessary.