| INVENTORIES |
| Schedule of inventories |
|
|
|
| |
|
|
Consolidated |
| |
12/31/2025 |
|
12/31/2024 |
| Finished goods |
3,565,541 |
|
4,250,175 |
| Work in progress |
4,515,197 |
|
3,976,448 |
| Raw materials |
2,804,157 |
|
2,845,578 |
| Storeroom supplies |
1,649,866 |
|
1,255,176 |
| Advances to suppliers |
99,325 |
|
23,463 |
| Provision for losses |
(105,060) |
|
(149,927) |
| |
12,529,026 |
|
12,200,913 |
| |
|
|
|
| Classified: |
|
|
|
| Current |
10,455,500 |
|
10,439,741 |
| Non-current (1) |
2,073,526 |
|
1,761,172 |
| |
12,529,026 |
|
12,200,913 |
| (1) | Long-term inventories of iron ore that
will be processed when implementing new beneficiation plants, which will generate Pellet Feed as a final product. The start of operations
is scheduled for the fourth quarter of 2028. |
The changes in expected losses on inventories are as
follows:
| Schedule of changes in expected losses on inventories |
|
|
|
| |
|
|
|
Consolidated |
| |
|
12/31/2025 |
|
12/31/2024 |
| Opening balance |
|
(149,927) |
|
(121,871) |
| Reversal/(Provision for losses) on inventories with low turnover and obsolescence |
44,867 |
|
(28,056) |
| Closing balance |
|
(105,060) |
|
(149,927) |
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.
|