20-F/A

As filed with the Securities and Exchange Commission on May 29, 2018.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________

FORM 20-F/A

(Amendment No. 1)

¨	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
	OR
x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2017
	OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	OR
¨	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-14732

________________________________________________

COMPANHIA SIDERÚRGICA NACIONAL
(Exact Name of Registrant as Specified in its Charter)

NATIONAL STEEL COMPANY     
(Translation of Registrant’s name into English)

THE FEDERATIVE REPUBLIC OF BRAZIL
(Jurisdiction of incorporation or organization)

________________________________________________

Marcelo Cunha Ribeiro, Chief Financial and Investor Relations Officer
Phone: +55 11 3049-7454 Fax: +55 11 3049-7212

marcelo.ribeiro@csn.com.br
Av. Brigadeiro Faria Lima, 3400 – 20^th floor
04538-132, São Paulo-SP, Brazil

(Address of principal executive offices)

________________________________________________

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class	Name of each exchange on which registered
Common Shares without par value	New York Stock Exchange*
American Depositary Shares (as evidenced by American Depositary Receipts), each representing one share of Common Stock	New York Stock Exchange

____________________

* Not for trading purposes, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the Securities and Exchange Commission.

1

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of December 31, 2017:

1,387,524,047 Common Shares without Par Value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

RYes ☐ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

☐ Yes R No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

R Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

R Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer R Accelerated Filer ☐ Non-accelerated Filer ☐ Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board R Other ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:

Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes R No

2

Explanatory Note

This Amendment No. 1 to the Annual Report on Form 20-F for the year ended December 31, 2017 of Companhia Siderúrgica Nacional (the “Company”), filed with the Securities and Exchange Commission on May 1, 2018 (the “Annual Report”), is being filed for the following reasons:

(i) To file Exhibit 101, which  presents financial information of the Company in eXtensible Business Reporting Language (XBRL). Item 19 of the Annual Report is amended to include the following exhibits:

Exhibit Number	Description
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Scheme Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Scheme Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Scheme Label Linkbase.
101.PRE	XBRL Taxonomy Extension Scheme Presentation Linkbase.

(ii) To reproduce text on page 39 of the Annual Report previously covered by an image in Item 4B. Business Overview as follows:

The following map shows the location of Casa de Pedra, Engenho and Fernandinho mines:

Limestone and Dolomite Mine

Our extraction and preparation of limestone and dolomite is done at our Bocaina mining facility located in the city of Arcos, in the state of Minas Gerais. Bocaina is an open pit mine and it can be accessed from the cities of Belo Horizonte, located approximately 230 km away, and Volta Redonda (where the Presidente Vargas Steelworks is situated), located approximately 462 km away, through mostly paved roads.

In 2016, a new crushing plant started, increasing the installed capacity to approximately 15 million tons per year.

This mine has sufficient limestone reserves to adequately supply our steel and cement productions at current levels by an average of 38 years.

Tin Facility

We own a tin facility in Itapuã do Oeste, in the state of Rondônia, through our subsidiary ERSA. This facility has an installed annual production capacity of approximately 3,600 tons of tin, which we use substantially as a raw material to produce tin plate, a coated steel product. A small part of our tin production that is not used as raw material is sold to third parties; however, the results from these sales are insignificant to our consolidated results.

Mineral Rights and Ownership

The Mining Code and the Brazilian Federal Constitution impose requirements on mining companies relating to, among other things, the manner in which mineral deposits are exploited, the health and safety of workers, the protection and restoration of the environment, the prevention of pollution and the promotion of the health and safety of local communities where the mines are located. The Mining Code also imposes certain notifications and reporting requirements.

We hold concessions to mine iron ore, limestone and dolomite. We purchase manganese in the local market. We own 87.52% of CSN Mineração mines and 100% of Bocaina and Santa Bárbara mines. In addition, each mine is an “open pit” mine. Iron ore extraction, crushing, screening and concentration are done in three different sites: Casa de Pedra mine and Pires beneficiation plant (all CSN Mineração’s property) and Fernandinho mine, a Minérios Nacional’s property.

This Amendment No. 1 comprises a cover page, this explanatory note, the exhibits referred to in paragraph (i), the signature page and the required certifications of the chief executive officer and chief financial officer of the Company.

Except as described above, this Amendment No. 1 does not amend any other information set forth in the Annual Report, and the Company has not updated disclosures included therein to reflect any events that occurred subsequent to April 30, 2018.

Item 19. Exhibits
Exhibit Number		Description
12.1	+	Section 302 Certification of Chief Executive Officer.
12.2	+	Section 302 Certification of Chief Financial Officer.
13.1	+	Section 906 Certification of Chief Executive Officer.
13.2	+	Section 906 Certification of Chief Financial Officer.
101.INS	+	XBRL Instance Document.
101.SCH	+	XBRL Taxonomy Extension Schema.
101.CAL	+	XBRL Taxonomy Extension Scheme Calculation Linkbase.
101.DEF	+	XBRL Taxonomy Extension Scheme Definition Linkbase.
101.LAB	+	XBRL Taxonomy Extension Scheme Label Linkbase.
101.PRE	+	XBRL Taxonomy Extension Scheme Presentation Linkbase.
+ Filed herewith.

SIGNATURES

The registrant hereby certifies that it meets all the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

May 29, 2018	Companhia Siderúrgica Nacional
	By:	/s/ Benjamin Steinbruch Benjamin Steinbruch
	Title:	Chief Executive Officer
	By:	/s/ Marcelo Cunha Ribeiro Marcelo Cunha Ribeiro
	Title:	Chief Financial and Investor Relations Officer

EX-12.1

 

Exhibit 12.1

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Benjamin Steinbruch, certify that:

1.            I have reviewed this annual report on Form 20-F of Companhia Siderúrgica Nacional;

2.            Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.            Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.            The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:                                                                                                                                  

(a)   designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.            The company’s other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function):

(a)   all material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Dated: May 29, 2018
	/s/ Benjamin Steinbruch
Name:	Benjamin Steinbruch
Title:	Chief Executive Officer

EX-12.2

 

Exhibit 12.2

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Marcelo Cunha Ribeiro, certify that:

1.            I have reviewed this annual report on Form 20-F of Companhia Siderúrgica Nacional;

2.            Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.            Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4.            The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:                                                                                                                                  

(a)   designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.            The company’s other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function):

(a)   all material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Dated: May 29, 2018
	/s/ Marcelo Cunha Ribeiro
Name:	Marcelo Cunha Ribeiro
Title:	Chief Financial Officer

EX-13.1

 

Exhibit 13.1

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Companhia Siderúrgica Nacional (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Annual Report on Form 20-F for the fiscal year ended December 31, 2017 of the Company, as filed with the U.S. Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 29, 2018
	/s/ Benjamin Steinbruch
Name:	Benjamin Steinbruch
Title:	Chief Executive Officer

EX-13.2

 

Exhibit 13.2

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Companhia Siderúrgica Nacional (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Annual Report on Form 20-F for the fiscal year ended December 31, 2017 of the Company, as filed with the U.S. Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 29, 2018
	/s/ Marcelo Cunha Ribeiro
Name:	Marcelo Cunha Ribeiro
Title:	Chief Financial Officer

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2017 shares
Document And Entity Information
Entity Registrant Name	NATIONAL STEEL CO
Entity Central Index Key	0001049659
Document Type	20-F
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	Yes
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	1,387,524,047
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2017

XML

Consolidated Balance Sheet - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	R$ 3,411,572	R$ 4,871,162
Financial Investments	735,712	760,391
Trade receivables	2,276,215	1,997,216
Inventories	4,464,419	3,964,136
Other current assets	993,578	852,013
Total current assets	11,881,496	12,444,918
NON-CURRENT ASSETS
Deferred income taxes	63,119	70,151
Other non-current assets	2,528,475	1,675,820
Total	2,591,594	1,745,971
Investments in associates and joint controlled entities	5,499,995	4,568,451
Property, plant and equipment	17,964,839	18,135,879
Intangible assets	7,272,046	7,258,404
Total non-current assets	33,328,474	31,708,705
TOTAL ASSETS	45,209,970	44,153,623
CURRENT LIABILITIES
Payroll and related taxes	252,418	253,837
Trade payables	2,460,774	1,763,206
Taxes payable	264,097	231,861
Borrowings and financing	6,526,902	2,117,448
Other payables	1,059,901	1,021,724
Provisions for tax, social security, labor and civil risks	105,958	108,607
Total current liabilities	10,670,050	5,496,683
NON-CURRENT LIABILITIES
Borrowings and financing	22,983,942	28,323,570
Other payables	129,323	131,137
Deferred income taxes	1,173,559	1,046,897
Provisions for tax, social security, labor and civil risks	719,133	704,485
Pension and healthcare plan	908,721	719,266
Provision for environmental liabilities and decommissioning of assets	337,013	347,064
Total non-current liabilities	26,251,691	31,272,419
Shareholders' Equity
Issued capital	4,540,000	4,540,000
Capital reserves	30	30
Earnings reserves	238,976	238,976
Treasury Shares	(238,976)	(238,976)
Accumulated Profit / (Loss)	(1,291,689)	(1,301,961)
Other comprehensive income	3,779,032	2,956,459
Total equity attributable to owners of the Company	7,027,373	6,194,528
Non-controlling interests	1,260,856	1,189,993
Total equity	8,288,229	7,384,521
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	R$ 45,209,970	R$ 44,153,623

XML

Consolidated Statements of Income - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Profit or loss [abstract]
Net Revenue from sales and/or services	R$ 18,524,601	R$ 17,148,949	R$ 15,261,697
Cost of sales and/or services	(13,596,141)	(12,640,042)	(11,740,101)
Gross profit	4,928,460	4,508,907	3,521,596
Operating income (expenses)	(1,944,495)	(2,563,431)	1,528,907
Selling expenses	(1,815,107)	(1,696,896)	(1,430,189)
General and administrative expenses	(415,841)	(518,232)	(470,332)
Other operating income	824,286	663,509	3,610,347
Other operating expenses	(646,944)	(1,076,730)	(1,341,191)
Equity in results of affiliated companies	109,111	64,918	1,160,272
Profit before financial income (expenses) and taxes	2,983,965	1,945,476	5,050,503
Financial income	295,074	643,590	487,720
Financial expenses	(2,758,701)	(3,166,017)	(3,852,882)
Profit (Loss) before income taxes	520,338	(576,951)	1,685,341
Income tax and social contribution	(409,109)	(266,546)	(2,903,216)
Profit (Loss) from continued operations	111,229	(843,497)	(1,217,875)
Profit (Loss) from discontinued operations	0	(9,561)	1,911
Net income (loss) for the year	111,229	(853,058)	(1,215,964)
Profit (Loss) for the year attributed to:
Controlling interests	10,272	(934,747)	(1,214,122)
Non-controlling interests	R$ 100,957	R$ 81,689	R$ (1,842)
Earnings (loss) per common share - (reais/share)
Basic	R$ .00757	R$ (.68876)	R$ (.89461)
Diluted	R$ 0.00757	R$ (0.68876)	R$ (0.89461)

XML

Consolidated Statements of Comprehensive Income - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of comprehensive income [abstract]
Consolidated profit (loss) for the year	R$ 111,229	R$ (853,058)	R$ (1,215,964)
Other comprehensive income	822,573	1,165,766	(1,190,803)
Items that will not be subsequently reclassified to the statement of income
Actuarial (losses)/gains on defined benefit plan from investments in subsidiaries	(12)	87	230
Actuarial (losses)/gains on defined benefit pension plan	(203,022)	(219,417)	92,221
Income tax and social contribution on actuarial (losses) gains on defined benefit pension plan	(1,073)	(2,619)	(64,756)
Items that will not be subsequently reclassified to the statement of income	(204,107)	(221,949)	27,695
Items that could be subsequently reclassified to the statement of income
Cumulative translation adjustments for the year	170,342	(486,890)	513,685
Change in fair value of available-for-sale assets financial assets	847,849	711,942	(969,701)
Income tax and social contribution on available-for-sale financial assets	0	0	174,128
Impairment of available-for-sale assets	0	0	555,298
Income tax and social contribution on impairment of available-for-sale assets	0	0	(33,269)
Gain on change in percentage of ownership	2,814	1,299	1,980
(Loss) gain on cash flow hedge accounting	(50,987)	1,005,968	(1,410,896)
Income tax and social contribution on (loss) gain on cash flow hedge accounting	0	0	(41,014)
Cash Flow hedge reclassified to income statement	92,140	77,444	11,439
(Loss) /gain on hedge of net investments in foreign subsidiaries	(39,893)	77,952	(20,148)
(Loss) / gain on business combination	4,415
Items that could be subsequently reclassified to the statement of income	1,026,680	1,387,715	(1,218,498)
Comprehensive income (loss) for the year	933,802	312,708	(2,406,767)
Attributable to:
Attributed to owners of the Company	832,845	231,019	(2,404,925)
Attributed to non-controlling interests	R$ 100,957	R$ 81,689	R$ (1,842)

XML

Consolidated Statements of Cash Flows - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of cash flows [abstract]
Profit (loss) for the year	R$ 111,229	R$ (853,058)	R$ (1,215,964)
Adjustments to reconcile net income (loss) to net cash provided by operations
Accrued charges on borrowings and financing	2,346,598	2,944,558	2,889,163
Charges on loans and financing granted	(54,777)	(58,731)	(65,084)
Depreciation/ depletion / amortization	1,453,335	1,322,497	1,176,840
Equity in results of affiliated companies	(109,111)	(64,918)	(1,160,348)
Deferred income tax and social contribution	50,128	60,368	2,767,545
Provision for tax, social security, labor and civil risks	10,166	(25,642)	85,965
Monetary variations and exchange differences	250,660	(1,038,018)	3,389,448
Gain/(Loss) of derivative financial instruments	(28,503)	(5,467)	4,086
Monetary adjustment related to the Eletrobras's compulsory loan	(755,151)	0	0
Impairment of available-for-sale assets	0	0	555,298
Proceeds from disposal of assets	28,127	88,339	6,466
Gain on repurchase of debt securities	0	(146,214)	(166,642)
Provision for actuarial liabilities	(36,953)	(18,803)	1,193
Gain on business combination	0	(66,496)	(3,297,499)
Gain on disposal of available for sale assets	0	(252,023)	0
Provision for environmental liabilities and decommissioning of assets	(10,051)	18,133	0
Impairment of Transnordestina	0	387,989	0
Other provisions	82,682	(993)	101,855
Total	3,338,379	2,291,521	5,072,322
Changes in assets and liabilities
Trade receivables - third parties	(300,449)	(388,469)	208,488
Trade receivables - related parties	14,449	(3,956)	217,439
Inventories	(442,109)	947,834	(726,800)
Receivables from related parties	68,224	34,082	3,545,142
Recoverable taxes	(100,470)	275,018	(537,669)
Judicial deposits	(6,720)	38,910	(35,415)
Trade payables	667,032	482,009	301,118
Payroll and related taxes	(3,658)	(5,691)	188,734
Taxes in installments - REFIS	23,775	(253,374)	(176,737)
Payables to related parties	46,081	(9,726)	(69,412)
Interest paid	(2,634,931)	(3,050,036)	(2,964,826)
Interest received	0	19,636	8,402
Interest on swaps paid	0	(3,999)	0
Other	(97,752)	(97,841)	38,377
Increase (Decrease) in assets and liabilities	(2,766,528)	(2,015,603)	(3,159)
Net cash generated by operating activities	571,851	275,918	5,069,163
Investments / acquisition of shares	0	(190,435)	(2,727,036)
Purchase of property, plant and equipment	(1,059,481)	(1,628,694)	(1,616,173)
Capital reduction on joint venture	0	0	466,758
Payment in derivative transactions	30,453	(722,443)	903,153
Purchase of intangible assets	(622)	(3,119)	(1,462)
Cash and cash equivalents in Namisa consolidation	0	0	456,364
Loans granted to related parties	(49,072)	(96,461)	(61,217)
Financial investment, net of redeemed amount	24,679	3,208	(728,725)
Receipt loans - related party	4,819	0	443,345
Cash and Cash equivalents from discontinued operations	0	331,835	0
Cash and Cash equivalents on acquisition of control	0	941	0
Net cash used in investing activities	(1,049,224)	(2,305,168)	(2,864,993)
Borrowings and financing raised	534,506	22,597	411,793
Cost of borrowing	(238)	(26,844)	(38,302)
Payment of borrowings	(1,528,023)	(398,699)	(2,380,968)
Payment of borrowings - related parties	0	0	(52,839)
Payment of dividends and interests on shareholder's equity	0	(53)	(549,835)
Treasury shares	0	0	(9,390)
Forfaiting funding / drawee risk	0	78,240	924,706
Forfaiting amortization / drawee risk	0	(407,155)	(1,146,306)
Buyback of debt securities	0	(151,098)	(249,627)
Net cash used in financing activities	(993,755)	(883,012)	(3,090,768)
Exchange rate changes on cash and cash equivalents of foreign subsidiaries	11,538	(77,628)	61,629
Increase (Decrease) in cash and cash equivalents	(1,459,590)	(2,989,890)	(824,969)
Cash and cash equivalents at the beginning of the year	4,871,162	7,861,052	8,686,021
Cash and cash equivalents at the end of the year	R$ 3,411,572	R$ 4,871,162	R$ 7,861,052

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Consolidated Statement of Changes in Shareholders' Equity - BRL (R$) R$ in Thousands	Paid-in Capital	Capital Reserve [Member]	Earnings Reserve [Member]	Retained Earnings [Member]	Other Comprehensive Income [Member]	Shareholders' Equity [Member]	Non-Controlling Interests [Member]	Total
Beginning balance at Dec. 31, 2014	R$ 4,540,000	R$ 30	R$ 1,131,298	R$ 0	R$ 25,140	R$ 5,696,468	R$ 38,507	R$ 5,734,975
Capital transactions with shareholders			(284,390)			(284,390)		(284,390)
Treasury shares acquired			(9,390)			(9,390)		(9,390)
Declared dividends			(275,000)			(275,000)		(275,000)
Total comprehensive income				(1,214,122)	1,765,553	551,431	(1,842)	549,589
Profit (loss) for the year				(1,214,122)		(1,214,122)	(1,842)	(1,215,964)
Other comprehensive income					1,765,553	1,765,553		1,765,553
Cumulative translation adjustments for the period					513,685	513,685		513,685
Actuarial gain/(loss) on defined benefit pension plan, net of taxes					27,695	27,695		27,695
Gain/(Loss) on available-for-sale assets, net of taxes					(273,544)	(273,544)		(273,544)
Gain/(loss) on percentage change in investments					1,980	1,980		1,980
Gain/(loss) on cash flow hedge accounting, net of taxes					(1,440,471)	(1,440,471)		(1,440,471)
Gain/(loss) on hedge of net investments in foreign subsidiaries					(20,148)	(20,148)		(20,148)
Gain/(loss) on business combination					2,956,356	2,956,356		2,956,356
Internal changes in shareholders' equity			(846,908)	846,908			1,091,114	1,091,114
Earnings reserve			(846,908)	846,908
Non-controlling interests in subsidiaries							1,091,114	1,091,114
Ending balance at Dec. 31, 2015	4,540,000	30	R$ 0	(367,214)	1,790,693	5,963,509	1,127,779	7,091,288
Total comprehensive income				(934,747)	1,165,766	231,019	81,689	312,708
Profit (loss) for the year				(934,747)		(934,747)	81,689	(853,058)
Other comprehensive income					1,165,766	1,165,766		1,165,766
Cumulative translation adjustments for the period					(486,890)	(486,890)		(486,890)
Actuarial gain/(loss) on defined benefit pension plan, net of taxes					(221,949)	(221,949)		(221,949)
Gain/(Loss) on available-for-sale assets, net of taxes					711,942	711,942		711,942
Gain/(loss) on percentage change in investments					1,299	1,299		1,299
Gain/(loss) on cash flow hedge accounting, net of taxes					1,083,412	1,083,412		1,083,412
Gain/(loss) on hedge of net investments in foreign subsidiaries					77,952	77,952		77,952
Internal changes in shareholders' equity							(19,475)	(19,475)
Non-controlling interests in subsidiaries							(19,475)	(19,475)
Ending balance at Dec. 31, 2016	4,540,000	30		(1,301,961)	2,956,459	6,194,528	1,189,993	7,384,521
Total comprehensive income				10,272	822,573	832,845	100,957	933,802
Profit (loss) for the year				10,272		10,272	100,957	111,229
Other comprehensive income					822,573	822,573		822,573
Cumulative translation adjustments for the period					170,342	170,342		170,342
Actuarial gain/(loss) on defined benefit pension plan, net of taxes					(204,107)	(204,107)		(204,107)
Gain/(Loss) on available-for-sale assets, net of taxes					847,849	847,849		847,849
Gain/(loss) on percentage change in investments					2,814	2,814		2,814
Gain/(loss) on cash flow hedge accounting, net of taxes					41,153	41,153		41,153
Gain/(loss) on hedge of net investments in foreign subsidiaries					(39,893)	(39,893)		(39,893)
Gain/(loss) on business combination					4,415	4,415		4,415
Internal changes in shareholders' equity							(30,094)	(30,094)
Non-controlling interests in subsidiaries							(30,094)	(30,094)
Ending balance at Dec. 31, 2017	R$ 4,540,000	R$ 30		R$ (1,291,689)	R$ 3,779,032	R$ 7,027,373	R$ 1,260,856	R$ 8,288,229

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1. DESCRIPTION OF BUSINESS

12 Months Ended

Dec. 31, 2017

Description Of Business

DESCRIPTION OF BUSINESS

1. DESCRIPTION OF BUSINESS

Companhia Siderúrgica Nacional “CSN”, also referred to as the Company, is a publicly-held company incorporated on April 9, 1941, under the laws of the Federative Republic of Brazil (Companhia Siderúrgica Nacional, its subsidiaries, joint ventures, joint operations and associates are collectively referred to herein as the "Group”). The Company’s registered office is located at Av. Brigadeiro Faria Lima, 3.400, 19 ^th and 20 ^th floors, Itaim Bibi, São Paulo, Brazil, CEP 04538-132.

CSN has shares listed on the São Paulo Stock Exchange (B3 S.A.- Brasil, Bolsa, Balcão) and on the New York Stock Exchange (NYSE), under the code SID. Accordingly, the Company reports its information to the Brazilian Securities Commission (CVM) and the U.S. Securities and Exchange Commission (SEC).

The Group's main operating activities are divided into five (5) operating segments as follows:

· Steel:

The Company’s main industrial facility is the Presidente Vargas steelworks (“UPV”), located in the city of Volta Redonda, State of Rio de Janeiro. This segment consolidates the operations related to the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel. In addition to the facilities in Brazil, CSN has operations in the United States, Portugal and Germany, all of them are in line with the plan to achieve new markets and perform excellent services for final consumers. Its steel has been used in home appliances, civil construction and automobile industries.

· Mining:

The production of iron ore is developed in the city of Congonhas, State of Minas Gerais.

Iron ore is sold basically in the international market, especially in Europe and Asia. The prices charged in these markets are historically cyclical and subject to significant fluctuations over short periods of time, driven by several factors related to global demand, strategies adopted by the major steel producers and the foreign exchange rate. All these factors are beyond the Company’s control. The ore transportation is accomplished by Terminal de Carvão e Minérios do Porto de Itaguai ( “TECAR”), a solid bulk terminal, one of the four terminals that compose the Port of Itaguai, located in the State of Rio de Janeiro. Imports of coal and coke are held through this terminal and directed to the steel industry of CSN.

The Company´s mining activities also comprises tin exploitation, which is based in the State of Rondônia, this facility is engaged to supply the needs of UPV, with the excess of raw materials being sold to subsidiaries and third parties.

· Cement:

CSN entered in the cement market boosted by the synergy between this new activity and its existing businesses. Next to UPV in Volta Redonda (RJ), is installed the new business unit: CSN Cimentos, which produces CP-III type of cement by using slag produced by the UPV blast furnaces in Volta Redonda. It also explores limestone and dolomite at the Arcos unit, located in the State of Minas Gerais, to satisfy the needs of UPV as of the cement plant.

In the fourth quarter of 2016, the Company started the operation of its second clinker production line in Arcos/MG. As a result, the Company is self-sufficient in the production of cement, with an installed capacity of 4.7 million tons per year.

· Logistics

Railroads:

CSN has interests in three railroad companies: MRS Logística S.A., which manages the former Southeast Railway System of Rede Ferroviária Federal S.A (“RFFSA”)., Transnordestina Logística S.A. (“TLSA”) and FTL - Ferrovia Transnordestina Logística S.A. (“FTL”), which has the concession to operate the former Northeast Railway System of RFFSA, in the States of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas, with TLSA being responsible for the rail links of Missão Velha-Salgueiro, Salgueiro-Trindade, Trindade-Eliseu Martins, Salgueiro-Porto de Suape and Missão Velha-Porto de Pecém (Railway System II), still under construction, and FTL being responsible for the rail links of São Luiz-Mucuripe, Arrojado-Recife, Itabaiana-Cabedelo, Paula Cavalcante-Macau and Propriá-Jorge Lins (Railway System I).

Ports:

In the State of Rio de Janeiro, by means of its subsidiaries Sepetiba Tecon S.A. and CSN Mineração S.A. (“CSN Mineração”), the Company operates the Container Terminal (“Tecon”) and the solid bulk terminal (Tecar), respectively, both located at the Itaguaí Port. Established in the harbor of Sepetiba, the mentioned port has a privileged highway, railroad and maritime access.

(“Tecon”) is responsible for the shipments of CSN´s steel products, movement and storage of containers, consolidation and deconsolidation of cargo; The Tecar´s port terminal is engaged to the iron ore shipment overseas and to the landing of coal, petroleum, coke, sulfur and zinc concentrate for our own operation and for third parties.

· Energy:

Since the energy supply is fundamental in CSN´s production process, the Company owns and operates facilities to generate electric power for guaranteeing its self-sufficiency. See further details in Note 8.d.

The note 25 - “Segment Information” details the financial information per each of CSN´s business segment.

Going Concern

In 2017, the Company amortized principal and interest in the approximate amount of R$4.2 billion of its loans and financing. Until March 2019, loans and interest to be incurred next year, are expected to be paid in the approximate amount of R$8.9 billion, after the local debt reprofiling.

The financial leverage may adversely affect the businesses, financial conditions and operating results and may require the following considerations:

· Allocation of a substantial part of the cash generated from operations for repayment of the borrowings.

· Exposure (i) to fluctuations in interest rates due to the renegotiation of debts and new borrowings taken, and fluctuations in exchange rates since a significant part of the borrowings is denominated in foreign currency.

· Increase in the economic and financial vulnerability due to adverse conditions of the industry and segment, limiting the funds available in the short term, considering the high financial leverage and the expected cash disbursements;

· Limitation of the Company’s ability to enter into new businesses (acquisitions) until the financial leverage is reduced;

· Limitation of the Company’s ability to obtain new credit lines under more favorable interest conditions due to the risks associated to the current financial leverage.

The Company’s ability to continue operating depends on the achievement of operating targets defined by Management, in addition to refinancing of contracted debts, and/or actions related to financial deleveraging.

In addition to the continuous focus on improvement in operating income, Management has various actions in progress to increase the Company’s liquidity through an extension of borrowing payment terms.

This plan was started in 2015, with the renegotiation of R$ 2.5 billion with Caixa Econômica Federal and R$ 2.2 billion with Banco do Brasil S.A, postponing the maturities from 2016 and 2017 to 2018 through 2022. In 2016, the Company extended the installments of certain NCE contracts amounting to R$ 100 million and prepayments of US$ 66 million with Bradesco, postponing the maturities from 2016 to 2019. In 2017, Management remained committed to the plan to extend it debt payment term, mainly those of short term, working on the renegotiation of borrowings at R$ 1.5 billion.

In February 2018 we concluded the renegotiation of R$4,98 billion of our outstanding debt with Banco do Brasil, postponing the maturities of 2018 through 2022 up to 2024. In February 2018 we issued debt instruments (“Notes”) in the amount of US$350 million through our wholly-owned subsidiary CSN Resources S.A., with maturity date in 2023 and, in conjunction, we made a repurchase offer (“Tender Offer”) of the Notes previously issued by CSN Islands XI Corp and CSN Resources S.A, having been repurchased US$350 million in Notes with maturities scheduled for 2019 and 2020.

Additionally, Management studies alternatives to financial deleverage from the disposal of non-strategic assets. However, it is not possible to affirm that the sale of assets will occur within a 12-month period. Thus, the Company did not segregate and did not reclassify any assets in the financial statements as discontinued operations in accordance with IFRS 5.

Based on Management’s cash flow projections that covered the period until December 2018 as of the date of these financial statements, which depend on factors such as the achievement of production targets, sales volumes and prices, as well as on renegotiations of borrowings, Management believes that the Company has appropriate resources to continue as a going concern in a reasonably estimable period of time. Accordingly, the Company’s financial statements for the year ended December 31, 2017 have been prepared on the assumption that the Company will continue as a going concern.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

Summary Of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.a) Basis of preparation

The consolidated financial statements have been prepared and are being presented in accordance with International Financial Reporting Standards “IFRS” issued by the International Accounting Standards Board (IASB). All the relevant information of the financial statements, and only this information, are being highlighted and correspond to those used by the Company's management.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. It is disclosed in the notes to this report all subjects involving a high degree of judgment or complexity or when assumptions and estimates are significant to the consolidated financial statements, those subjects are related to the allowance for doubtful debts, provision for inventory losses, provision for labor, civil, tax, environmental and social security contingences, depreciation, amortization, depletion, provision for impairment, deferred taxes, financial instruments and employee benefits. Actual results may differ from these estimates.

The financial statements are presented in thousands of Brazilian Reais (R$). Depending on the applicable IFRS standard, the measurement criteria used in preparing the financial statements considers the historical cost, net realizable value, fair value or recoverable amount. When the IFRS allows us to option between acquisition cost and other measurement criteria, the acquisition cost was the criteria used.

The consolidated financial statements were approved by the Board of Directors on April 30, 2018.

2.b) Consolidated financial statements

The accounting policies have been consistently applied to all consolidated companies. The consolidated financial statements for the years ended December 31, 2017 and 2016 include the following direct and indirect subsidiaries, joint ventures and joint operations, as well as the exclusive funds, as follows:

	Equity interests (%)
Companies	12/31/2017	12/31/2016	Core business
Direct interest in subsidiaries: full consolidation
CSN Islands VII Corp.	100.00	100.00	Financial transactions
CSN Islands XI Corp.	100.00	100.00	Financial transactions
CSN Islands XII Corp.	100.00	100.00	Financial transactions
CSN Minerals S.L.U. (1)	100.00	100.00	Equity interests
CSN Export Europe, S.L.U. (1)	100.00	100.00	Financial transactions and Equity interests
CSN Metals S.L.U. (1)	100.00	100.00	Equity interests and Financial transactions
CSN Americas S.L.U. (1)	100.00	100.00	Equity interests and Financial transactions
CSN Steel S.L.U.	100.00	100.00	Equity interests and Financial transactions
TdBB S.A (*)	100.00	100.00	Equity interests
Sepetiba Tecon S.A.	99.99	99.99	Port services
Minérios Nacional  S.A.	99.99	99.99	Mining and Equity interests
Companhia Florestal do Brasil	99.99	99.99	Reforestation
Estanho de Rondônia S.A.	99.99	99.99	Tin Mining
Companhia Metalúrgica Prada	99.99	99.99	Manufacture of containers and distribution of steel products
CSN Gestão de Recursos Financeiros Ltda. (*)	99.99	99.99	Management of funds and securities portfolio
CSN Mineração S.A.	87.52	87.52	Mining and Equity interests
CSN Energia S.A. (2)	99.99	100.00	Sale of electric power
FTL - Ferrovia Transnordestina Logística S.A.	90.78	90.78	Railroad logistics
Nordeste Logística S.A.	99.99	99.99	Port services
CGPAR - Construção Pesada S.A. (3)	-	100.00	Mining support services and Equity interests
Indirect interest in subsidiaries: full consolidation
Companhia Siderúrgica Nacional LLC	100.00	100.00	Steel
CSN Europe Lda.(4)	-	100.00	Financial transactions, product sales and Equity interests
CSN Ibéria Lda. (4)	-	100.00	Financial transactions, product sales and Equity interests
Lusosider Projectos Siderúrgicos S.A.	99.94	99.94	Equity interests and product sales
Lusosider Aços Planos, S. A.	99.99	99.99	Steel and Equity interests
CSN Resources S.A.	100.00	100.00	Financial transactions and Equity interests
Companhia Brasileira de Latas (2)	99.99	100.00	Sale of cans and containers in general and Equity interests
Companhia de Embalagens Metálicas MMSA	99.67	99.67	Production and sale of cans and related activities
Companhia de Embalagens Metálicas - MTM	99.67	99.67	Production and sale of cans and related activities
CSN Steel Holdings 1, S.L.U.	100.00	100.00	Financial transactions, product sales and Equity interests
CSN Productos Siderúrgicos S.L.	100.00	100.00	Financial transactions, product sales and Equity interests
Stalhwerk Thüringen GmbH	100.00	100.00	Production and sale of long steel and related activities
CSN Steel Sections UK Limited (*)	100.00	100.00	Sale of long steel
CSN Steel Sections Polska Sp.Z.o.o	100.00	100.00	Financial transactions, product sales and Equity interests
CSN Asia Limited	100.00	100.00	Commercial representation
CSN Mining Holding, S.L  (5)	87.52	87.52	Financial transactions, product sales and Equity interests
CSN Mining GmbH	87.52	87.52	Financial transactions, product sales and Equity interests
CSN Mining Asia Limited	87.52	87.52	Commercial representation
Aceros México CSN	100.00	100.00	Commercial representation,sale of steel and related activity
Lusosider Ibérica S.A. (6)	99.94		Steel, commercial and industrial activities and equity interests
CSN Mining Portugal, Unipessoal Lda. (6)	87.52		Sale and commercial representation
Direct interest in joint operations: proportionate consolidation
Itá Energética S.A.	48.75	48.75	Electric power generation
Consórcio da Usina Hidrelétrica de Igarapava	17.92	17.92	Electric power consortium
Direct interest in joint ventures: equity method
MRS Logística S.A.	18.64	18.64	Railroad transportation
Aceros Del Orinoco S.A.	31.82	31.82	Dormant company
CBSI - Companhia Brasileira de Serviços de Infraestrutura	50.00	50.00	Equity interests and product sales and iron ore
Transnordestina Logística S.A.	46.30	49.02	Railroad logistics
Indirect interest in joint ventures: equity method
MRS Logística S.A.	16.30	16.30	Railroad transportation
Direct interest in associates: equity method
Arvedi Metalfer do Brasil S.A.	20.00	20.00	Metallurgy and Equity interests

(*) They are Dormant Companies, therefore they do not appear in the note 8.a, where is disclosed business information under the equity method and classified as available for sale.

· Events in 2017:

(1) On February 6, 2018, the Spanish commercial registry recognized the merger by absorption of the companies by CSN Steel, S.L.U., date from which the companies were considered legally extinct. In addition, before third parties and for the purposes of commercial law, the merger is retroactive to the date of December 28, 2017;

(2) Transfer of 1 share in August 2017;

(3) Company sold to the CSN Mineração and in August 2017 was incorporated by the same subsidiary;

(4) Companies liquidated in July 2017;

(5) New corporate name of Namisa International Minérios SLU, amended in September 2017;

(6) Companies constituted in 2017;

• Exclusive funds 

	Equity Interests (%)
Exclusive funds	12/31/2017	12/31/2016	Core business
Direct interest: full consolidation
Diplic II- Private credit balanced mutual fund	100.00	100.00	Investment fund
Caixa Vértice - Private credit balanced mutual fund	100.00	100.00	Investment fund
VR1 – Private Credit balanced mutual fund	100.00	100.00	Investment fund

In preparing the consolidated financial statements, we have adopted the following consolidation procedures:

·                  Transactions between subsidiaries, associates, joint ventures and joint operations

Unrealized gains on transactions with subsidiaries, joint ventures and associates are eliminated to the extent of CSN’s equity interests in the related entity by the consolidation process. Unrealized losses are eliminated in the same manner as unrealized gains, although only to the extent that there are not indications of impairment. The Company eliminates the effect on profit or loss of transactions carried out with joint ventures and, as a result, reclassifies part of the equity in results of joint ventures to financial costs, cost of sales and income tax and social contribution.

The base date to the financial statements of the subsidiaries and joint ventures is the same as of the Company, and their accounting policies are also in line with the policies adopted by the CSN.

Subsidiaries

Subsidiaries are all entities (including special purpose entities) which financial and operating policies can be conducted by the Company and when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to use its power to affect its returns. The existence and effect of potential voting rights that are actually exercisable or convertible are taken into consideration when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date when the control is transferred to the Company and are deconsolidated from the date when such control ceases.

Joint ventures and joint operations

Joint arrangements are all entities over which the Company has joint control with one or more other parties. The investments in joint arrangements are classified as joint operations or joint ventures depending on the contractual rights and obligations of each investor.

Joint operations are accounted for in the financial statements in order to represent the Company's contractual rights and obligations. Therefore, the assets, liabilities, revenues and expenses related to its interests in joint operations are accounted for individually in the financial statements.

Joint ventures are accounted for under the equity method and are not consolidated.

The Company eliminates the effect on profit or loss of transactions carried out with joint ventures and, as a result, eliminates part of the equity in results of joint ventures to financial costs, cost of sales, net sales and income tax and social contribution.

Associates

Associates are all entities over which the Company has significant influence but not control, generally through a shareholding percentage from 20% up to 50% of the voting rights. Investments in associates are accounted for under the equity method and are initially recognized at cost.

·                  Transactions and non-controlling interests

The Company treats transactions with non-controlling interests as transactions with owners of the Company. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of subsidiary net assets is recorded in shareholders' equity. Gains and losses on disposals to non-controlling interests are also recognized directly in shareholders' equity.

When the Company no longer holds control, any retained interest in the entity is remeasured to its fair value, with the change in the carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest in an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Company had disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

2.c) Foreign currencies

i.                  Functional and presentation currency

Items included in the financial statements are related to each one of the Company's subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates (“functional currency”). The consolidated financial statements are presented in Brazilian Reais (R$), which is the Company’s functional currency and the Group’s presentation currency.

ii.                Transactions and balances

Transactions in foreign currencies are translated into the functional currency using the exchange rates in effect at the dates of the transactions or valuations when their values are remeasured. Foreign exchange gains and losses resulting from the settlement of those transactions and from the translation at exchange rates in effect as of December 31, 2017 related to monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, except when they are recognized in shareholders' equity as a result of foreign operation characterized as foreign investment.

The balances of assets and liabilities are translated by exchange rates prevailing at the end of the reporting period. As of December 31, 2017, US$1 is equal to R$3.3080 (R$3.2591 at December 31, 2016) and €1 is equal to R$3.9693 (R$3.4384 at December 31, 2016).

All other foreign exchange gains and losses, including foreign exchange gains and losses related to borrowings and cash and cash equivalents, are presented in the income statement as financial income or costs.

Changes in the fair value of monetary securities denominated in foreign currency, classified as available-for-sale, are segregated into exchange differences related to the amortized cost of the security and other changes in the carrying amount of the security. Exchange differences related to amortized cost are recognized in profit or loss, and other changes in the carrying amount are recognized in shareholders' equity.

Exchange differences on non-monetary financial assets and liabilities classified as measured at fair value through profit or loss are recognized in profit or loss as part of the gain or loss on the fair value. Exchange differences on investments classified as available-for-sale are included in comprehensive income in shareholders' equity.

iii.               Group companies

The results and financial position of all the Group’s entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

·        The assets and liabilities of each balance sheet presented are translated by exchange rate at the end of the reporting period;

·        The income and expenses of each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates at the transaction dates, in which case income and expenses are translated at the rate in effect at the transaction dates);

·        All resulting exchange differences are recognized as a separate component in other comprehensive income; and

·        Gains and losses accumulated in shareholders' equity are included in the income statement when the foreign operation is partially disposed or sold.

On consolidation, exchange differences resulting from the translation of monetary items with characteristics of net investment in foreign operations are recognized in shareholders' equity. When a foreign operation is partly disposed of or sold, exchange differences previously recorded into other comprehensive income are recognized in the income statement as part of the gain or loss on sale.

2.d) Cash and cash equivalents

Cash and cash equivalents include cash on hand, in bank accounts and other short-term highly liquid investments redeemable within 90 days from the end of the reporting period, readily convertible into a known amount of cash and subject to an insignificant risk of change in value. Bank certificates of deposit and government securities that do not meet the above criteria are not considered cash equivalents and are classified as financial investments, according to note 4.

2.e) Trade receivables

Trade receivables are initially recognized at fair value, including the related taxes and expenses. Foreign currency-denominated trade receivables are adjusted at the exchange rate in effect at the end of the reporting period. The allowance for estimated losses on doubtful debts were recognized in an amount considered sufficient to cover any losses. Management’s assessment takes into consideration the customer’s history and financial position, as well as the opinion of their legal counsel regarding the collection of these receivables for recognizing the allowance for estimated losses.

2.f) Inventories

Inventories are carried at the lower of cost and net realizable value. Cost is determined using the weighted average cost method on the acquisition of raw materials. The costs of finished goods and work in process comprise raw materials, labor and other direct costs (based on the normal production capacity). Net realizable value represents the estimated selling price in the normal course of business, less estimated costs of completion and costs necessary to make the sale. The allowance for estimated losses on slow-moving or obsolete inventories are recognized when considered necessary.

Stockpiled ore inventories are accounted for as processed when removed from the mine. The cost of finished goods comprises all direct costs necessary to transform stockpiled inventories into finished goods.

2.g) Investments

Investments in subsidiaries, joint ventures and associates are accounted for under the equity method of accounting and are initially recognized at cost. The gains or losses are recognized in profit or loss as operating income (or expenses). In the case of foreign exchange differences arising on translating foreign investments that have a functional currency different from the Company’s, changes in investments due exclusively to foreign exchange differences, as well as adjustments to pension plans and available-for-sale investments that impact the subsidiaries’ shareholders' equity, are recognized in line item “Cumulative translation adjustments”, in the Company’s shareholders' equity, and are only recognized in profit or loss when the investment is disposed or written off due to impairment loss. Other investments are recognized at cost or fair value.

When necessary, the accounting policies of subsidiaries, joint ventures and associates are changed to ensure consistency with the policies adopted by the Company.

2h) Business combination

The acquisition method is used to account for on each business combination conducted by the Company. The payment obligation transferred by acquiring an entity is measured by the fair value of the assets transferred, liabilities incurred and equity instruments issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement, where applicable. Acquisition-related costs are recognized in profit or loss for the year, as incurred. Identifiable assets acquired and liabilities assumed in a business combination are initially measured at their fair values at the acquisition date.

2.i) Property, plant and equipment

Property, plant and equipment are carried at cost of acquisition, formation or construction, less accumulated depreciation or depletion and any impairment loss. Depreciation is calculated under the straight-line method based on the remaining economic useful economic lives of assets, as mentioned in note 9. The depletion of mines is calculated based on the quantity of ore mined. Land is not depreciated since their useful life is considered indefinite. However, if the tangible assets are mine-specific, that is, used in the mining activity, they are depreciated over the shorter between the normal useful lives of such assets and the useful life of the mine. The Company recognizes in the carrying amount of property, plant and equipment the cost of replacement and consequently reducing the carrying amount of the part that is replaced if it is probable that future economic benefits embodied therein will revert to the Company, and if the cost of the asset can be reliably measured. All other disbursements are expensed as incurred. Borrowing costs related to funds obtained for construction in progress are capitalized until these projects are completed.

If some components of property, plant and equipment have different useful lives, these components are accounted for in separate line items of property, plant and equipment.

Gains and losses on disposal are determined by comparing the sale value less the residual value and are recognized in ‘Other operating income (expenses)’.

Exploration expenditures are recognized as expenses until the viability of mining activities is established, after this period the subsequent development costs are capitalized. Exploration and valuation expenditures include:

· Research and analysis of historical data related to area exploration;

· Topographic, geological, geochemical and geophysical studies;

· Determine the mineral asset’s volume and quality/grade;

· Examine and test the extraction processes and methods;

· Topographic surveys of transportation and infrastructure needs;

· Market and financial studies;

The development costs from new mineral deposits or from capacity expansion in mine operations are capitalized and amortized using the produced (extracted) units method based on the probable and proven ore quantities. The development stage includes:

· Drillings to define the ore body;

· Access and draining plans;

· Advance removal of overburden (top soil and waste material removed prior to initial mining of the ore body) and waste material (non-economic material that is intermingled with the ore body).

Stripping costs (the costs associated with the removal of overburden and other waste materials) incurred during the development of a mine, before production commences, they are capitalized as part of the depreciable cost of developing the property. Such costs are subsequently amortized over the useful life of the mine based on proven and probable reserves.

Stripping costs in the production phase are included in the cost of the inventory produced, except when a specific extraction campaign is made to access deeper deposits of where ore body is located. In these cases, costs are capitalized and taken to noncurrent assets when the mineral ore deposit is extracted and are amortized over the useful life of the ore body.

The Company holds spare parts that will be used to replace parts of property, plant and equipment and that used to increase the asset’s useful life when it exceeds 12 months. These spare parts are classified in property, plant and equipment and not in inventories.

2.j) Intangible assets

Intangible assets comprise assets acquired from third parties, including through business combinations.

These assets are recognized at cost of acquisition or formation, less amortization calculated on a straight-line basis method based on the estimated periods of exploration or recovery

Mineral rights acquired are classified in line item “other assets” in intangible assets.

Intangible assets with indefinite useful lives and goodwill based on expected future profitability are not amortized.

· Goodwill

Goodwill represents the positive difference between the amount paid and/or payable for the acquisition of a business and the net fair values of the acquiree´s assets and liabilities. Goodwill on acquisitions from business combination is recognized as intangible assets in the consolidated financial statements. The gain from a bargain purchase is recognized directly in the statement of income at the acquisition date. Goodwill is annually tested for impairment. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of a Cash-Generating Unit (CGU) include the carrying amount of goodwill related to the CGU sold.

Goodwill is allocated to CGUs for impairment testing purposes. The allocation is made to CGUs of CGUs that are expected to benefit from the business combination in which the goodwill arose, and recalling that unit is not greater than the operating segment.

· Software

Software licenses purchased are capitalized based on the costs incurred to purchase the software and make it ready for use. These costs are amortized on a straight-line basis over the estimated useful lives from one to five years.

2.k) Impairment of non-financial assets

Assets with infinite useful lives, such as goodwill, are not subject to amortization and are annually tested for impairment. Assets subject to amortization and/or depreciation, such as property, plant and equipment, are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment loss is recognized by determining an asset´s recoverable amount. The recoverable amount is the higher of the fair value of an asset less costs to sell and its value in use. For impairment testing purposes, assets are grouped at their lowest levels for which there are separately identifiable cash flows (Cash Generating Units, or CGUs). Non-financial assets, except for goodwill, are subsequently reviewed for possible reversal of the impairment at the reporting date.

2.l) Employee benefits

i. Employee benefits

Defined contribution plans

A defined contribution plan is as a post-employment benefit plan whereby an entity pays fixed contributions to a separate entity (pension fund) and will not have any legal or constructive obligation to pay additional amounts. Obligations for contributions to defined contribution pension plans are recognized as employee benefit expenses in the periods during which services are provided by employees. Contributions paid in advance are recognized for an asset since it is agreed that either cash reimbursement or future reduction on payables will flow back to CSN. Contributions to a defined contribution plan that is expected to mature twelve (12) months after the end of the period in which the employee provides services are discounted to their present values.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation regarding defined pension benefit plans is calculated individually for each plan by estimating the value of the future benefit that the employees accrue as return for services provided in the current period and in prior periods; such benefit is discounted to its present value. The discount rate is the yield presented at the end of the reporting period for top line debt securities whose maturity dates approximate the terms and conditions of the Company’s obligations and which are denominated in the same currency as the one in which it is expected that the benefits will be paid. The calculation is made annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit for the Company, the asset to be recognized is limited to the total amount of any unrecognized costs of past services and the present value of the economic benefits available in the form of future plan reimbursements or reduction in future contributions to the plan. The present value of economic benefits is calculated taking into account the funding requirements applicable to the Company’s plans. An economic benefit is available to the Company if it is realizable during the life of the plan or upon settlement of the plan’s liabilities.

The Company and some of its subsidiaries offered a postretirement healthcare benefit to its employees. The right to these benefits is usually contingent to their remaining in employment until the retirement age and the completion of the minimum length of service. The expected costs of these benefits are accumulated during the employment period, and are calculated using the same accounting method used for defined benefit pension plans. These obligations are annually valued by qualified independent actuaries.

When the benefits of a plan are increased, the portion of the increased benefit related to past services of employees is recognized in profit or loss until the benefits become vested. When benefits became vesting rights, all actuarial gains or losses are immediately recognized in profit or loss.

The Company recognizes all actuarial gains and losses resulting from defined benefit plans immediately in other comprehensive income. If the plan is extinguished, actuarial gains and losses are recognized in profit or loss.

ii. Profit sharing and bonus

Employee profit sharing and executives’ variable compensation are linked to the achievement of operating and financial targets. The Company recognizes a liability and an expense substantially allocated to production cost and, where applicable, to general and administrative expenses when such goals are met.

2.m) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation and it has reliable cost estimation.

The amount recognized as a provision is the best value estimation required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). Success fees are accrued to the extent that they make it probable that disbursements will occur. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is probable that reimbursement will be received and that the amount of the receivable can be measured reliably.

2.n) Concessions

The Company has governmental concessions to provide the following types of services: railway and port transportation managed by Company´s subsidiaries and joint-ventures. The concessions included in the consolidated financial statements are related to the rail network in the Northeast area, managed by the subsidiary FTL, the container terminal in Itaguaí, managed by the subsidiary Sepetiba Tecon and the port terminal TECAR for exporting ore and importing coal, which is managed by the subsidiary CSN Mineração.

The Company´s concession contracts are not within the scope of the international interpretative standard IFRIC 12, considering that the grantor (refers to the government) has effectively no control over what, to whom and at what price the services will be provided by the dealer (refers to the private part) to the customers. In essence, all concession contracts has operating leasing characteristics. Therefore, the accounting should follow the accounting rules applicable to leases. Our concession agreements provide for the use of a specific asset for an agreed period of time, but without any transfer of ownership to the Company or option to buy these assets after the completion of these contracts.

Payments made under operating leases are recognized in the income statement on a straight line basis over the period of the contracts.

There are assets related to our concessions which are subject to reversion to the grantor at the end of the concession agreement.

The residual carrying amounts of these assets on December 31, 2017 are listed below with an indication of their classification in our financial statements:

Concession	Net book value (R$)		Classification in balance sheet
Sepetiba Tecon S.A. (TECON)	313	million	Fixed assets
			intangible: Software
Tecar	1,528	million	Fixed assets
			intangible: Software
Ferrovia Transnordestina Logística S.A. (FTL)	230	million	Fixed assets
Transnordestina Logística S.A. (TLSA)	7,934	million (1)	Investment
MRS Logística S.A. (MRS)	3,428	million (2)	Investment

(1)       The amount of fixed and intangible assets is recognized in TLSA’s financial statements. We recognize our interest in the net assets of TLSA under the equity method and our investment balance in TLSA as of December 31, 2017 was R$1,473,298.

(2)       The amount of fixed and intangible assets is recognized in MRS’s financial statements. We recognize our interest in the net assets of MRS by the equity method and our investment balance consolidated in MRS as of December 31, 2017 was R$ 1,325,032.

2.o) Share capital

Common shares are classified in shareholders' equity.

Incremental costs directly attributable to the issue of new shares or options are shown in shareholders' equity as a deduction to the amount received, net of taxes.

When any Company of the Group buys Company shares (treasury shares), the amount paid, including any directly additional costs (net of income tax), is deducted from shareholders' equity attributable to owners of the Company until the shares are canceled or sold. When these shares are subsequently sold, any amount received, net of any directly attributable additional transaction costs and the related income tax and social contribution effects, is included in shareholders' equity attributable to owners of the Company.

2.p) Revenue recognition

Operating revenue from the sale of goods in the normal course of business is measured at the fair value of the receivables. Revenue is recognized when there is convincing evidence that the most significant risks and rewards of ownership of goods have been transferred to the buyer, it is probable that future economic benefits will flow to the entity, the associated costs and possible return of goods can be reliably estimated, there is no continued involvement with the goods sold, and the amount of the operating revenue can be reliably measured. If it is probable that discounts will be granted and the value thereof can be reliably measured, then the discount is recognized as a reduction of the operating revenue as sales are recognized. Revenue from services provided is recognized as it is realized.

The appropriate timing for transfer of risks and rewards varies depending on the individual terms and conditions of the sales contract. For international sales, this timing depends on the type of term of the contract term.

2.q) Financial income and financial expenses

Financial income includes interest income from funds invested (except available-for-sale financial assets), dividend income not accounted for under the equity method, gains on disposal of available-for-sale financial assets, changes in the fair value of financial assets measured at fair value through profit or loss, and gains on derivative instruments that are recognized in profit or loss. Interest income is recognized in profit or loss under the effective interest method. Dividend income is recognized in profit or loss when the Company’s right to receive payment has been established. Distributions received from investees accounted for under the equity method reduce the investment value.

Financial expenses comprise interest expenses on borrowings, losses on the fair value of financial instruments measured at fair value through profit or loss, impairment losses recognized in financial assets, and losses on derivative instruments that are recognized in profit or loss. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are measured through profit or loss under the effective interest method.

Foreign exchange gains and losses are reported on a net basis.

2.r) Income tax and social contribution

Current income tax and social contribution are calculated based on the tax laws enacted by the end of the reporting period, including in the countries where the Group entities operate and generate taxable profit. Management periodically assesses the positions taken in the tax calculations with respect to situations where applicable tax regulations are open to interpretations. The Group recognizes provisions where appropriate, based on the estimated payments to tax authorities. The income tax and social contribution expense comprises current and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they are related to business combinations or items recognized directly in shareholders' equity.

Current tax is the expected tax payable or receivable on taxable profit or loss for the year at tax rates that have been enacted by the end of the reporting period and any adjustment to taxes payable in relation to prior years.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax is not recognized for the following temporary differences: initial recognition of assets and liabilities in a transaction that is not a business combination and does not affect either the accounting or taxable profit or loss, and differences associated with investments in subsidiaries and joint ventures when it is probable that they will not reverse in the foreseeable future.

Moreover, a deferred tax liability is not recognized for taxable temporary differences resulting from the initial recognition of goodwill. The deferred tax is measured at the rates that are expected to be applied on temporary differences when they reverse, based on the laws enacted by the end of the reporting period.

Current income tax and social contribution are carried at their net amounts by the taxpayer, in liabilities when there are amounts payable or in assets when prepaid amounts exceed the total amount due at the end of the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on the same entity subject to taxation.

A deferred income tax and social contribution asset is recognized for all tax losses, tax credits, and deductible temporary differences to the extent that it is probable that taxable profits will be available against which those tax losses, tax credits, and deductible temporary differences can be utilized. Annually, the Company reviews and verifies the existence of future taxable income and a provision for loss is recognized when the realization of these credits is not likely.

2.s) Earnings/(Loss) per share

Basic earnings/loss per share are calculated by means of the profit/loss for the year attributable to owners of the Group and the weighted average number of common shares outstanding in the related period. Diluted earnings/loss per share are calculated by means of the average number of shares outstanding, adjusted by instruments potentially convertible into shares, with diluting effect, in the reported periods. The Group does not have any instruments potentially convertible into shares and, accordingly, diluted earnings/loss per share are equal to basic earnings/loss per share.

2.t) Environmental and restoration costs

The Company recognizes a provision for the recovery costs and fines when a loss is probable and the amounts of the related costs can be reliably measured. Generally, the period when the provision for recovery is recognized coincides with the end of a feasibility study or the commitment to adopt a formal action plan.

Expenses related to compliance with environmental regulations are charged to profit or loss or capitalized, as appropriate. Capitalization is considered appropriate when the expenses refer to items that will continue to benefit the Group and that are basically related to the acquisition and installation of equipment to control and/or prevent pollution.

The Company make the provisions for asset retirement obligations which refer to estimated costs for decommissioning, retirement or restoration of areas upon the termination of activities of our mining resources. The initial measurement is recognized as a liability discounted to present value and subsequently through increase in expenses over time. The asset retirement cost equivalent to the initial liability is capitalized as part of the carrying amount of the asset and is depreciated over the useful life of the asset.

2.u) Research and development

Research expenditures are recognized as expenses when incurred. Expenditures on project developments (related to the design and testing stages of new or improved products) are recognized as intangible assets when it is probable that projects will be successful, based on their commercial and technological feasibility, and only when the cost can be reliably measured. When capitalized, development expenditures are amortized from the start of a product commercial production, on a straight-line basis and over the period of the expected benefit.

2.v) Financial instruments

i)     Financial assets

Financial assets are classified into the following categories: measured at fair value through profit or loss, loans and receivables, held-to-maturity and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at the time of initial recognition.

· Recognition and measurement

The Company classifies, at initial recognition, its financial assets into four categories: i) fair value through profit or loss, ii) loans and receivables, iii) held-to-maturity assets, and iv) available-for-sale financial assets. Assets are recognized at fair value, plus (with the exception of assets recognized at fair value through profit or loss) transaction costs that are directly attributable to the acquisition or issuance of financial asset.

In the subsequent measurement, loans and receivables are carried at amortized cost using the effective interest method.

Gains or losses resulting from changes in the fair value of financial assets measured at fair value through profit or loss are presented in the income statement under “financial income” in the period in which they arise. Dividend income from financial assets at fair value through profit or loss is recognized in the income statement as part of other financial income when the Company’s right to receive the dividends has been established.

The changes in the fair value of available-for-sale financial assets are recognized as follows: (i) the effects of foreign exchange differences and the changes in the fair value of the investment in the investee’s capital are recognized directly in the Company’s shareholders’ equity, in “Other comprehensive income” and; (ii) the effects of foreign exchange differences and the changes in the option’s fair value are recognized in the income statement for the year.

Interest on available-for-sale securities, calculated under the effective interest method, is recognized in the income statement as part of other income. Dividends from available-for-sale equity instruments, such as shares, are recognized in the income statement as part of other financial income when the Company’s right to receive payments has been established.

The fair values of publicly quoted investments are based on current purchase prices. If the market for a financial asset (and for instruments not listed on a stock exchange) is not active, the Company establishes the fair value by using valuation techniques. These techniques include the use of recent transactions contracted with third parties, reference to other instruments that are substantially similar, analysis of discounted cash flows, and option pricing models that make maximum use of market inputs and relies as little as possible on entity-specific inputs.

Regular purchases and sales of financial assets are recognized at the trading date on which the Company undertakes to buy or sell the asset.

· Derecognized

Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred, in the latter case, provided that the Company has transferred significantly all risks and rewards of ownership.

· Financial assets measured at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets held for active and frequent trading. Derivatives are also categorized as held for trading and, accordingly, are classified in this category unless they have been designed as cash flow hedging instruments. Assets in this category are classified in current assets.

· Loans and receivables

This category includes loans and receivables that are non-derivative financial assets with fixed or determinable payments not quoted in an active market. They are included in current assets, except those with maturity of more than 12 months after the end of the reporting period (which are classified as non-current assets). Loans and receivables include loans to associates, trade receivables, other receivables and cash and cash equivalents, except short-term investments. Cash and cash equivalents are recognized at fair value. Loans and receivables are carried at amortized cost using the effective interest method.

· Held-to-maturity assets

These are basically financial assets acquired with the positive intent and ability to hold to maturity. Held-to-maturity investments are initially recognized at their value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method, less any impairment loss.

· Available-for-sale financial assets

These are non-derivative financial assets, designated as available-for-sale, that are not classified in any other category established. They are included in non-current assets when they are strategic investments for the Company, unless Management intends to dispose of the investment within 12 months from the end of the reporting period. Available-for-sale financial assets are recognized at fair value.

ii)                Impairment of financial assets

The Company evaluates at each reporting period whether there is an evidence of impairment in a financial asset or a group of financial assets. This evaluation should consider objective evidence of the occurrence of events that may impact the estimated cash flows of an individual financial asset or group of financial assets.

· Assets measured at amortized cost

A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there are evidences of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”), such loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets and the future cash flow estimation can be reliably calculated.

The criteria used by CSN to determine whether there are evidences of impairment loss includes:

· significant financial weakness related to the issuer or counterparty;

· a breach of contract, such as default or delinquency at interest or principal payments;

· the issuer, for economic or legal reasons relating to the borrower’s financial weakness, grants to the borrower a concession that the lender would not otherwise consider;

· it becomes probable that the borrower will incur in bankruptcy or other financial reorganization;

· the disappearance of an active market for the related financial asset because of financial weakness; or

· observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of such assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including:

- Adverse changes in the payment status of borrowers in the portfolio;

- National or local economic conditions that correlate with defaults on the assets in the portfolio.

The amount of the loss is measured by the difference between the carrying amount of the asset and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the original effective interest rate of the financial asset. The carrying amount of the asset is reduced and the amount of the loss is recognized in the income statement. If a loan or held-to-maturity investment has a variable interest rate, the discount rate to measure an impairment loss is the current effective interest rate determined pursuant to the contract. As a practical expedient, the Company may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor’s credit rating), the previously recognized impairment loss is reversed and recognized in the consolidated income statement.

· Assets classified as available-for-sale

In the case of equity securities classified as available-for-sale, a significant or prolonged decline at the fair value of an investment in an equity instrument below of its cost is also an evidence of impairment. Determining what is considered a “significant” or “prolonged” decline requires judgment. For this judgment we assess, among other factors, the historical changes in the equity prices, the duration and proportion in which the fair value of the investment is lower than its cost as well as the financial health and short-term business prospects for the investee, including factors such as: industry and segment performance, changes in technology and operating/financial cash flows. If any of the impairment evidences is observed for available-for-sale financial assets, the cumulative loss—measured as the difference between the acquisition cost and the current fair value, less any impairment loss on the financial asset previously recorded in profit or loss—is reclassified from equity to profit or loss. Impairment losses recognized in the income statement as available-for-sale instruments are not reversed.

CSN tested for impairment its available-for-sale investment in Usiminas shares, see note 12 – Financial Instruments.

iii)               Financial liabilities

Financial liabilities are classified under the following categories ‘’measured at fair value through profit or loss’’ and ‘’other financial liabilities’’. Management determines the classification of its financial liabilities at the time of initial recognition.

· Financial liabilities measured at fair value through profit or loss

Financial liabilities classified in category fair value through profit or loss are financial liabilities held for trading or those designated at the time of initial recognition.

Derivatives are also classified as trading securities, and thereby are classified so, unless they have been designated as effective hedging instruments.

Gains and losses on financial liabilities classified at fair value through profit or loss are recognized in profit or loss

· Other financial liabilities

Other financial liabilities are measured at amortized cost using the effective interest method. The Company holds the following non-derivative financial liabilities: borrowings, financing and debentures as well as trade payables.

Write-off of financial liabilities

Financial liabilities are written off only when the obligations are terminated and canceled or when they mature. The difference between the carrying amount of the financial liability written off and the consideration paid and payable is recognized in profit or loss.

· Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to set off the recognized amounts as well as the intention to either settle them on a net basis or to realize the asset and settle the liability simultaneously.

iv)               Derivative instruments and hedging activities

· Derivatives measured at fair value through profit or loss

Derivatives are initially recognized at fair value on the date when a derivative contract is entered, thereafter they are subsequently measured at their fair value and any changes are recognized as “Financial income (costs)” in the income statement.

· Cash flow Hedge

The Company adopts hedge accounting and designates certain financial liabilities as a hedging instrument of a foreign exchange risk associated to the cash flows from forecast, highly probable exports (cash flow hedges).

At the inception of the transaction, the Company documents the relationships between the hedging instruments and the hedged items, as well as its risk management objectives and strategy for undertaking hedging transactions. The Company also documents its assessment, both at the inception of the hedge and on an ongoing basis, of whether the hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items.

The effective portion of the changes in the fair value of financial liabilities designated and qualifying as cash flow hedge is recognized on equity, in line item "Hedge accounting”. Any gain or loss related to the ineffective portion is recognized immediately in other operational income(expenses), if applicable.

The amounts accumulated in equity are reclassified to the income statement in the periods when the forecast exports affect profit or loss.

When a hedging instrument expires, is settled in advance or the hedging relationship no longer meets the hedge accounting criteria, or even when Management decides to discontinue hedge accounting, all cumulative gains or losses recorded in equity at the time remain recognized in equity and, from that moment, the exchange variations are recorded in the financial income (expenses). When the forecast transaction is completed, the gain or loss is reclassified to profit or loss. When a forecast transaction is no longer expected to take place, the cumulative gain or loss previously recognized in shareholders’ equity is immediately transferred to the income statement, in line item “Other operating income (expenses)”.

The movements in the hedge amounts designated as exporting cash flow hedges are stated in note 12 – Financial instruments.

· Net investment hedge

For net investment hedge, the Company designates part of its financial liabilities as hedging instruments of its overseas investments with functional currencies other than the Group’s functional currency, according to IAS39. Such relationship occurs since the financial liabilities are related to the investments in the amounts required for the effective relationship.

At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking out hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values of the hedged item.

The effective portion of changes in the fair value of financial liabilities that are designated and qualify as a net investment hedge is recognized in equity in line item “Hedge Accounting”. The gain or loss relating to the ineffective portion is recognized in financial income (costs), when applicable. If at some point of the hedging relationship the balance of the debt is higher than the balance of the investment, the exchange variation on the excess debt will be reclassified to the statement of profit or loss as Other operating income/(expenses) (ineffectiveness of the hedge).

The amounts accumulated in equity will be realized in the statement of profit or loss upon disposal or partial disposal of the foreign operation.

The changes in the amounts of hedge denominated as Net investment hedge are shown in note 12 – Financial Instruments.

2.w) Segment information

An operating segment is a component of the Group committed to the business activities from which it can obtain revenues and incur expenses, including revenues and expenses related to transactions with any other components of the Group. All the operating results of operating segments are reviewed regularly by the Executive Officers of CSN to enable decisions regarding resources to be allocated to the segment and assessment of its performance. The Company maintains distinct financial information for the distinct segments.

2.x) Government grants

Government grants are not recognized until there is reasonable assurance that the Company will comply to the conditions attaching to them and assurance that the grants will be received, so then they will be recognized in profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants are intended to compensate.

The Company has state tax incentives in the North and Northeast regions, which are recognized in profit or loss as a reduction of the corresponding costs, expenses and taxes.

2.y) Noncurrent assets held for sale and discontinued operations

Noncurrent assets and groups of assets are classified as held for sale if their carrying amount is recovered mainly through a sale transaction and not through continued use.

The criteria for classification of items held for sale are considered to be met only when the sale is highly probable and the asset or group of assets is available for immediate sale.

Assets and liabilities classified as held for sale are presented separately as current items in the balance sheet.

Classification as a discontinued operation occurs through disposal, or when the transaction meets the criteria to be classified as held for sale if this occurs earlier. A discontinued operation is a component of a Group business which comprises operations and cash flows that may be clearly distinct from the rest of the Group and represent a separate business line or geographical area of ​​operations.

The result of discontinued operations is presented in a single amount in the income statement, including the total income after income tax of these operations, less any impairment loss.

2.z) New standards and interpretations issued and not yet adopted

The following standards and interpretations have been issued and will be mandatory for subsequent accounting periods and were not early adopted by the Group for the year ended December 31, 2017:

Standard	Main items introduced by the standard	Effective date
IFRS 9 – Financial Instruments	The standard retains but simplifies the combined measurement model and establishes two main measurement categories of financial assets: amortized cost and fair value. The classification basis depends on the entity business model and the characteristics of the financial asset’s contractual cash flow. IFRS 9 retains most of IAS 39 requirements for financial liabilities. The main change refers to those cases where the fair value of the financial liabilities must be segregated so that the fair value portion related to the entities credit risk is recognized in “other comprehensive income” and not in profit or loss for the period. The standard introduces an expected credit loss model for the measurement of the impairment of financial assets. However, it is no longer necessary for a credit event to have occurred before a credit loss is recognized. Finally, IFRS 9 introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures. The requirements for derecognition of financial assets and liabilities under IFRS 9 are carried forward from IAS 39.	January 1, 2018
IFRS15 – Revenue from Contracts with Customers	This new standard introduces the principles that an entity will apply to determine the revenue measurement and when such revenue shall be recognized. IFRS 15 replaces IAS 11 – Construction Contracts, IAS 18 - Revenue and related interpretations.	January 1, 2018
IFRS16 - Leases	This new standard defines the principles for recognition, measurement, presentation and disclosure of leases and introduces a single model for the accounting of leases in the balance sheet for the lessees. A lessee recognizes a right-of-use asset that represents his obligation to make lease payments. Optional exemptions are available for short- term leases and low-value items. For lessors, accounting treatment remains practically the same, with the classification of leases as operating leases or financial leases, and accounting for these two types of lease differently. IFRS 16 replaces existing lease standards, including IAS 17 – Leasing Operations and IFRIC 4, SIC 5 and SIC 27 – Complementary Aspects of Leasing Operations.	January 1, 2019
IFRIC 22 – Foreign Currency Transaction and Advance Consideration	The Interpretation covers foreign currency transactions (or part of them) when an entity recognizes a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognizes the related asset, expense or income (or part of it).	January 1, 2018
IFRIC 23 – Uncertainty over Income Tax Treatments	Can be unclear how tax law applies to a particular transaction or circumstance. This interpretation complements the IAS 12 – Income Tax, clarify how to reflect the effects of uncertainty over income tax treatments.	January 1, 2019

The following information presents the possible impacts on the adoption of IFRS 9 and IFRS 15 which were available at the time of the preparation of these financial statements. In this way, these preliminary assessments and their potential impacts are subject to change until the initial adoption be disclosed in the 2018 financial statements.

-         IFRS 9 – Financial Instruments

Classification and measurement of financial assets: Management evaluated the classification and measurement of financial assets offered by the new pronouncement based on its diagnosis, business model, expectations of the company’s cash flow and the financial assets management model. In this way, was concluded that the investment in Usiminas shares would be appropriately classified in the category of "fair value through profit or loss" and that the loans and receivables would be classified in the category of measured at "amortized cost".

In the classification of the category of "fair value through profit or loss", the gains or losses arising from the variation of the quotation of the shares are recorded directly in the statement of income at the time of adoption and throughout all future periods. On the other hand, since it is an initial adoption, the Company evaluated the possible impacts related to the investment in Usiminas shares and the gain of R$1.5 billion previously recognized and accumulated in Other comprehensive income was reclassified to “Other operating income” in the statement of income on January 1st, 2018. , arising from the recording of the accumulated balance currently recognized in other comprehensive income.

-         IFRS 15 - Revenue from Contracts with Customers

The Company's Management evaluated all stages of the new standard for the recognition of revenue from contracts with customers. Based on this analysis, the Company did not identify material measurement impacts on the application of this standard.

The observed impacts are related to the review of internal procedures, with the objective to ensure that the new contracts with clients will be properly evaluated and accounted in accordance with the principles of the new standard.

-         IFRS 16 – Leases

During 2018, the Company will evaluate, in the main contracts, the effects of applying the new standard.

The Company does not expect material impacts arising from the application of the new standard.

-         IFRIC 22 - Foreign Currency Transaction and Advance Consideration

For IFRIC 22, the Company will evaluate the effects of applying the new interpretation during 2018, in its operations in foreign currency.

-       IFRIC 23 - Uncertainty over Income Tax Treatments

For IFRIC 23, during 2018 the Company will study this interpretation to assets how it applies to the Brazilian tax environment.

The Company does not expect material impacts arising from the application of the interpretation.

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3. CASH AND CASH EQUIVALENTS

12 Months Ended

Dec. 31, 2017

Cash and cash equivalents [abstract]

CASH AND CASH EQUIVALENTS

3. CASH AND CASH EQUIVALENTS

		Consolidated
	12/31/2017	12/31/2016
Current
Cash and cash equivalents
Cash and banks	193,702	502,480
Short-term investments
In Brazil:
Government securities	12,100	17,929
Private securities	644,525	1,390,707
	656,625	1,408,636
Abroad:
Time deposits	2,561,245	2,960,046
Total short-term investments	3,217,870	4,368,682
Cash and cash equivalents	3,411,572	4,871,162

The short-term investments are held through exclusive funds and are comprised of Certificates of Bank Deposits (“CDBs”) and yield interest based on the floating of Certificates of Interbank Deposits (“CDI”), and of Brazilian Treasury notes with return at fixed rates. These short-term investments have immediate liquidity.

A significant part of the funds of the Company and its foreign subsidiaries is invested in time deposits in top rated banks abroad and the returns are based on fixed interest rates.

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4. FINANCIAL INVESTMENTS

12 Months Ended

Dec. 31, 2017

Financial Investments Abstract

FINANCIAL INVESTMENTS

4. FINANCIAL INVESTMENTS

		Consolidated
	12/31/2017	12/31/2016
CDB - Bank Certificate of Deposit (1)	716,218	658,476
Government securities (2)	19,494	101,915
	735,712	760,391

(1) Financial investments linked to Bank Certificates of Deposit (CDBs), to be used as a collateral to a guarantee letter, of certain loans.

(2) Financial investments in Public Securities (Financial Treasury Bills) managed by its exclusive funds. In 2016, in addition to the Financial Treasury Bills, the Company had a financial investment in Public Securities managed by its exclusive funds which were used as collateral for future CDI rate’s contracts in the period as detailed in note 12 (b). These investments were settled in October 2017.

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5. TRADE RECEIVABLES

12 Months Ended

Dec. 31, 2017

Trade Receivables

TRADE RECEIVABLES

5. TRADE RECEIVABLES

		Consolidated
	12/31/2017	12/31/2016
Trade receivables
Third parties
Domestic market	1,290,823	1,027,639
Foreign market	982,846	919,936
	2,273,669	1,947,575
Allowance for doubtful accounts	(191,979)	(172,782)
	2,081,690	1,774,793
Related parties (Note 18 b)	115,388	129,837
	2,197,078	1,904,630
Other receivables
Dividends receivable (Note 18 b) (*)	41,528	37,679
Advances to employees	33,942	34,607
Other receivables	3,667	20,300
	79,137	92,586
	2,276,215	1,997,216

(*) Refers mainly to dividends from CSN Mineração S.A. totaling R$ 837,084 received in February 2018.

The Company assigns certain accounts receivable to anticipate the cash inflows and eliminate the credit risk of the notes. These transactions amounted to R$181,972 as of December 31, 2017 (R$263,644 as of December 31, 2016).

The breakdown of gross trade receivables from third parties is as follows:

		Consolidated
	12/31/2017	12/31/2016
Current	1,391,839	1,381,255
Past-due up to 180 days	310,106	245,012
Past-due over 180 days	571,724	321,308
	2,273,669	1,947,575

The movements in the Group’s allowance for doubtful debts are as follows:

		Consolidated
	12/31/2017	12/31/2016
Opening balance	(172,782)	(151,733)
Estimated losses	(36,697)	(25,474)
Recovery of receivables	17,500	4,425
Closing balance	(191,979)	(172,782)

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6. INVENTORIES

12 Months Ended

Dec. 31, 2017

Inventories Abstract

INVENTORIES

6. INVENTORIES

		Consolidated
	12/31/2017	12/31/2016
Finished goods	1,308,802	1,183,619
Work in progress	1,135,589	674,860
Raw materials	1,050,588	1,124,158
Spare parts	814,725	824,478
Iron ore	278,041	255,029
Advances to suppliers	12,514	3,168
(-) Provision for losses	(135,840)	(101,176)
	4,464,419	3,964,136

The movements in the provision for inventory losses are as follows:

		Consolidated
	12/31/2017	12/31/2016
Opening balance	(101,176)	(111,427)
Reversal / (losses) for slow-moving and obsolescence	(34,664)	10,251
Closing balance	(135,840)	(101,176)

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7. OTHER CURRENT AND NON-CURRENT ASSETS

12 Months Ended

Dec. 31, 2017

Other Current And Non-current Assets

OTHER CURRENT AND NON-CURRENT ASSETS

7. OTHER CURRENT AND NON-CURRENT ASSETS

The group of other current and non-current assets is comprised as follows:

				Consolidated
	Current		Non-current
	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Judicial deposits (Note 16)			339,351	331,258
Credits with the PGFN (1)			46,774	46,774
Recoverable taxes (2)	866,986	780,715	401,071	386,872
Prepaid expenses	50,078	27,011	30,741	20,421
Actuarial asset - related party (Note 18 b)			111,281	119,854
Derivative financial instruments (Note 12 I)		2,298
Securities held for trading (Note 12 I )	2,952	2,966
Iron ore inventory (3)			144,499	144,499
Northeast Investment Fund – FINOR			26,598	26,598
Other receivables (Note 12 I)			20,024	15,291
Loans with related parties (Note 18 b and 12 I)	2,441		554,694	479,960
Other receivables from related parties (Note 18 b)	3,577	5,768	30,770	32,020
Monetary adjustment related to the Eletrobrás's compulsory loan (Note 23)			755,151
Other	67,544	33,255	67,521	72,273
	993,578	852,013	2,528,475	1,675,820

(1)  Refers to the excess of judicial deposit originated by the 2009 REFIS (Tax Debt Refinancing Program). After the settlement of the tax debt refinancing program, the amount related to one of the lawsuits was fully redeemed through a judicial authorization.

(2)  Refers mainly to taxes on revenue (PIS/COFINS) and State VAT (ICMS) recoverable and income tax and social contribution for offset.

(3)  Long-term iron ore inventories that will be used after the construction of the processing plant, which will produce pellet feed, expected to start operating in the first half of 2020.

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8. INVESTMENTS

12 Months Ended

Dec. 31, 2017

Investments Abstract

INVESTMENTS

Reduction of financial leverage

With the primary objective of reducing the Company’s financial leverage, Management is committed to a plan to dispose of a set of assets, however, it is not possible to confirm that the sale within a period of 12 months is highly probable for any of the assets contemplated. The Company considers several sales scenarios that vary according to different macroeconomic and operational assumptions. In this context, the Company did not segregate and did not reclassify such assets in the financial statements as discontinued operations in accordance with IFRS 5.

·                 Events occurred in 2017

Sale of the Subsidiary - CGPAR Construção Pesada - "CGPAR"

In July 2017, the Company concluded the sale of its subsidiary CGPAR Construção Pesada S.A. to CSN Mineração S.A., a subsidiary of the Company. The summary of the transaction can be shown as follows:

	R$ (000)
Consideration paid	99,452
Net assets acquired at book value	(64,063)
Capital distribution	(35,389)

8.a) Direct equity interests in subsidiaries, joint ventures, joint operations, associates and other investments

12/31/2017									12/ 31/ 2016
Companies		Number of shares held by		% Direct equity interest	Participation In				% Direct equity interest		Participation In
					Assets	Liabilities	Shareholders' equity	Profit (loss) for period		Assets	Liabilities	Shareholder s' equity	Profit (loss) for period
		CSN in units
		Common	Preferred
Investments under the equity method
Subsidiaries
CSN Islands VII Corp.		20,001,000		100.00	5,242,890	5,421,043	(178,153)	(385,919)	100.00	6,436,140	6,228,374	207,766	167,767
CSN Islands IX Corp.	(1)												(388)
CSN Islands XI Corp.		50,000		100.00	2,514,894	2,557,398	(42,504)	(63,201)	100.00	2,530,563	2,509,866	20,697	(1,295)
CSN Islands XII Corp.		1,540		100.00	2,166,682	3,312,505	(1,145,823)	(126,524)	100.00	2,244,240	3,263,539	(1,019,299)	75,787
CSN Minerals S.L.U.	(2)							331,897	100.00	3,833,669	9,840	3,823,829	(927,265)
CSN Export Europe, S.L.U.	(2)							22,600	100.00	666,362	30,077	636,285	(185,057)
CSN Metals S.L.U.	(2)							23,188	100.00	636,408	20,668	615,740	(175,236)
CSN Americas S.L.U.	(2)							193,652	100.00	1,492,678	4,445	1,488,233	(220,412)
CSN Steel S.L.U.	(2)	2,042,688		100.00	6,905,164	322,963	6,582,201	108,427	100.00	2,537,179	1,585,977	951,202	323,043
Sepetiba Tecon S.A.		254,015,052		99.99	459,647	160,402	299,245	29,768	99.99	441,214	165,172	276,042	22,794
M inérios Nacional S.A.		66,393,587		99.99	105,586	65,290	40,296	(13,600)	99.99	74,738	28,038	46,700	(12,548)
Fair Value - M inérios Nacional							2,123,507					2,123,507
Estanho de Rondônia S.A.		121,861,697		99.99	46,005	41,032	4,973	(6,291)	99.99	32,816	21,552	11,264	(13,061)
Companhia M etalúrgica Prada		313,651,399		99.99	655,748	485,915	169,833	(29,258)	99.99	769,337	620,509	148,828	(45,783)
CSN Mineração S.A.		158,419,480		87.52	14,273,290	5,620,137	8,653,153	767,568	87.52	13,039,767	4,943,090	8,096,677	580,146
CSN Energia S.A.		43,149		99.99	146,130	55,030	91,100	56,987	100.00	109,290	39,654	69,636	26,240
FTL - Ferrovia Transnordestina
Logística S.A.		395,302,149		90.78	419,388	138,888	280,500	(77,384)	90.78	484,218	126,334	357,884	(11,376)
Companhia Florestal do Brasil		41,673,302		99.99	34,910	3,734	31,176	(1,499)	99.99	35,206	5,179.0	30,027	(2,215)
Nordeste Logística		99,999		99.99	80	55	25	(1)	99.99	81	55	26	(74)
CGPAR - Construção Pesada S.A	(3)							723	100.00	40,889	27,558	13,331	5,887
Fair value fixed assets - CGPAR								(3,940)				53,949	(3,940)
					32,970,414	18,184,392	16,909,529	827,193		35,404,795	19,629,927	17,952,324	(396,986)
Jo int-venture and Jo int-o peratio n
Itá Energética S.A.		253,606,846		48.75	265,476	18,104	247,372	10,789	48.75	282,383	27,728	254,655	8,591
M RS Logística S.A.		26,611,282	2,673,312	18.64	1,520,264	857,581	662,683	85,974	18.64	1,411,526	795,903	615,623	77,828
CBSI - Companhia Brasileira de		1,876,146		50.00	16,005	13,654	2,351	1,785	50.00	13,574	11,517	2,057	2,953
Serviços de Infraestrutura
Transnordestina Logística S.A.		24,168,304		46.28	3,806,380	2,604,198	1,202,182	(21,357)	49.02	3,786,556	2,566,315	1,220,241	(52,127)
Fair Value allocated to TLSA in loss of control							271,116					271,116
					5,608,125	3,493,537	2,385,704	77,191		5,494,039	3,401,463	2,363,692	37,245
A sso ciates
Arvedi M etalfer do Brasil		46,994,971		20.00	43,653	23,978	19,675	(4,368)	20.00	53,101	48,258	4,843	1,372
					43,653	23,978	19,675	(4,368)		53,101	48,258	4,843	1,372
C lassified as available fo r sale (no te 12 I)
Usiminas							2,200,459					1,353,664
Panatlântica							21,974					20,604
							2,222,433					1,374,268
Other investments
							(72,473)	1,985				(74,459)	7,583
Others							63,537	(165)				63,541	(19,557)
							(8,936)	1,820				(10,918)	(11,974)
T o tal Investments							21,528,405	901,836				21,684,209	(370,343)
C lassificatio n o f investiments in the balance sheet
Investments in assets							22,894,885					22,703,508
Investments whith short liabilities							(1,366,480)					(1,019,299)
							21,528,405					21,684,209

(1) Company terminated in 2016;
(2) Merger of the companies by the subsidiary CSN Steel S.L.U. in December 2017, according to note 2;

(3) Company sold in July 2017, to the subsidiary CSN Mineração.

The number of shares, the carrying amounts of assets, liabilities and shareholders’ equity, and the amounts of profit or loss for the year refer to the equity interests held by CSN in those companies.

8.b) Changes of investments balances in subsidiaries, joint ventures, joint operations, associates and other investments

		Consolidated
	12/31/2017	12/31/2016
Opening balance of investments	4,568,451	3,998,239
Capital increase/acquisition of shares	20,579	190,651
Dividends (1)	(79,189)	(36,765)
Comprehensive income (2)	850,640	713,442
Equity in results of affiliated companies (4)	147,800	108,031
Amortization of fair value – investment in MRS	(11,746)	(11,746)
Amortization of fair value – investment in CGPAR		(3,940)
Impairment of the Fair Value of Transnordestina (3)		(387,989)
Others	3,460	(1,472)
Closing balance of investments	5,499,995	4,568,451
Total	5,499,995	4,568,451

(1) In 2017 refers to the allocation of dividends from subsidiaries Sepetiba Tecon, MRS Logistica, CSN Energia, Itá Energética, CBSI – Companhia Brasileira de Serviços de Infraestrutura, CSN Minerals, CSN Steel, CSN Metals, CSN Mineração and CSN Americas.

(2) Refers to the mark-to-market of investments classified as available for sale and translation to the reporting currency of the foreign investments (the functional currency of which is not the Brazilian Reais), actuarial gain/loss and gain/loss on net investment hedge from investments measured by equity method.

(3) Refers to impairment of the fair value of Transnordestina Logística S.A, see note 8.d).

(4) The reconciliation of the equity in results of affiliated companies included on investment balance with the amount disclosed in the income statement and it is due to the elimination of the results of the CSN´s transactions with these companies

		Consolidated
	12/31/2017	12/31/2016
Equity in results of affiliated companies
MRS Logística S.A.	171,905	155,617
CBSI - Companhia Brasileira de Serviços de Infraestrutura	1,785	2,953
Transnordestina	(21,357)	(52,127)
Arvedi Metalfer do Brasil	(4,368)	1,372
Others	(165)	216
	147,800	108,031
Eliminations
To cost of sales	(40,823)	(41,556)
To taxes	13,880	14,129
Others
Amortization of fair value -  Investments in MRS	(11,746)	(11,746)
Amortization of fair value - Investments in CGPAR		(3,940)
Equity in results	109,111	64,918

8.c) Additional information about the main operating subsidiaries

· SEPETIBA TECON S.A. (“TECON”)

The Container Terminal was created to exploit the terminal n^o 1 in Itaguaí Port, located in the State of Rio de Janeiro. The terminal is connected to the UPV by the Southeast railroad network.  The Southeast railroad network is the contract object of the concession that has been granted to MRS Logística S. A. The range of services includes the move operation of cargo, storage of containers and steel products, general cargo, cleaning and maintenance.

Tecon won the auction held on September 3, 1998 to enter into a lease agreement for operation of the port terminal for a period of 25 years, extendable for an equal period. With the publication of Presidential Decree 9048 of May 10, 2017, the operation of the terminal may be successively extended in distinct periods with a maximum term of 70 years.

When the concession expires, it will return to the Union as well as all the rights and privileges transferred to Tecon, along with the ownership of assets and those resulting from investments, declared reversible by the Federal Government for being necessary to the continuity of terminal´s operation. The reversible assets will be indemnified by the Federal Government at the residual value of cost, based on the accounting records of Tecon after deducting depreciation.

· ESTANHO DE RONDÔNIA S.A. (“ERSA”)

Headquartered in the state of Rondônia, the subsidiary operates two units, which are based in the cities of Itapuã do Oeste/RO and Ariquemes/RO. In Itapuã do Oeste is extracted the cassiterite (tin ore) and in Ariquemes is located the casting operation, where the metallic tin is made, which is the raw material used in UPV for the production of tin plates.

· COMPANHIA METALÚRGICA PRADA (“Prada”)

Prada operates in the area of two segments: steel metal packaging, production and processing and distribution of flat steel.

Metal packaging

In the steel metal packaging segment, Prada produces its supply chain includes the chemical and food segments, providing packaging and printing services to leading companies in the market.

Prada holds a 100% interest in the capital stock of Companhia Brasileira de Latas - "CBL".

On 2015, Prada has incorporated its subsidiary Rimet Empreendimentos Industriais e Comerciais.

Distribution

Prada is a player in the market of processing and distribution regarding flat steel products, with a diversified product line. It provides coils, rolls, strips, blanks, metal sheets, profiles, tubes and tiles, among other products, to the most different industry segments - from automotive to construction. It is also specialized in providing service steel processing, meeting the demand of the all national companies.

· CSN ENERGIA S.A.

Its main objective is the distribution of the excess electric power generated by CSN and Companies, consortiums or other entities in which CSN holds an interest.

· FTL - FERROVIA TRANSNORDESTINA LOGÍSTICA S.A. (“FTL”)

FTL was created on the purpose of incorporating the spin-off portion of TLSA, the Company holds the concession to operate the railway cargo transportation, the public service is provided in northeastern of Brazil, which includes the rail segments of Sao Luis - Fortaleza, Arrojado - Recife, Itabaiana - Cabedelo, Paula Cavalcante - Macau and Propriá - Jorge Lins ("Network I").

As of November 2016, the CSN subscribed shares by capitalization of advances for future capital increase amounting R$ 39,341, therefore its participation in the share capital of the company increased from 89.79% to 90.78%. As a result of the operations described above that caused a change in the shareholder’s participation, the Company recorded a loss in the amount of R$(25) recorded in shareholders' equity in other comprehensive income.

· CSN MINERAÇÃO S.A. (“CSN Mineração”)

Headquartered in Congonhas, Minas Gerais, it is primarily engaged in the production, purchase and sale of iron ore. CSN Mineração S.A. commercializes its products mainly in the overseas market. From 30 November 2015, the CSN Mineração S.A. has centralized mining operations of CSN, including the establishments of the mine Casa de Pedra, the port TECAR and the participation of 18.63% in MRS. The participation of the CSN in this subsidiary is 87.52%.

· MINÉRIOS NACIONAL S.A. (“Minérios Nacional”)

Headquartered in Congonhas, Minas Gerais, Mineração Nacional is mainly engaged in the production and commercialization of iron ore. This subsidiary concentrates the mining rights assets related to the Fernandinho, Cayman and Casa de Pedra mines transferred to this subsidiary in the business combination process that took place in 2015.

8.d) Joint ventures and joint operations financial information

The balances of the balance sheets and income statements of joint venture and joint operation are presented as follows and refer to 100% of the companies´ profit/loss:    

				12/31/2017					12/31/2016
	Joint-Venture			Joint-Operation		Joint venture			Joint-Operation
Equity interest (%)	MRS Logística	CBSI	Transnordestina Logística	Itá Energética		MRS Logística	CBSI	Transnordestina Logística	Itá Energética
	34.94%	50.00%	46.30%	48.75%		34.94%	50.00%	49.02%	48.75%
Balance sheet
Current assets
Cash and cash equivalents	484,978	101	5,763	16,231		345,164	2,925	1,899	17,689
Advances to suppliers	14,911	37		22		7,452	951		99
Other current assets	685,311	28,475	49,494	16,447		406,170	19,603	54,652	16,054
Total current assets	1,185,200	28,613	55,257	32,700		758,786	23,479	56,551	33,842
Non-current assets
Other non-current assets	693,434	974	238,004	27,459		598,577	234	261,292	29,219
Investments, PP&E and intangible assets	6,277,550	2,423	7,927,881	484,406		6,215,442	3,434	7,407,189	516,186
Total non-current assets	6,970,984	3,397	8,165,885	511,865		6,814,019	3,668	7,668,481	545,405
Total Assets	8,156,184	32,010	8,221,142	544,565		7,572,805	27,147	7,725,032	579,247
Current liabilities
Borrowings and financing	668,947	1,411	52,691			653,491		76,441
Other current liabilities	1,272,365	25,898	113,739	33,666		740,319	23,034	134,747	53,858
Total current liabilities	1,941,312	27,309	166,430	33,666		1,393,810	23,034	211,188	53,858
Non-current liabilities
Borrowings and financing	2,084,422		5,457,768			2,176,357		5,024,404
Other non-current liabilities	575,170	-	434	3,471		699,830	-	-	3,020
Total non-current liabilities	2,659,592	-	5,458,202	3,471		2,876,187	-	5,024,404	3,020
Shareholders’ equity	3,555,280	4,701	2,596,510	507,428		3,302,808	4,113	2,489,440	522,369
Total liabilities and shareholders’ equity	8,156,184	32,010	8,221,142	544,565		7,572,805	27,147	7,725,032	579,247
				01/01/2017 to 12/31/2017					01/01/2016 to 12/31/2016
	Joint-Venture			Joint-Operation	Joint venture				Joint-Operation
Equity interest (%)	MRS Logística	CBSI	Transnordestina Logística	Itá Energética		MRS Logística	CBSI	Transnordestina Logística	Itá Energética
	34.94%	50.00%	46.30%	48.75%		34.94%	50.00%	49.02%	48.75%
Statements of Income
Net revenue	3,492,805	135,399		168,194		3,279,420	122,870		172,263
Cost of sales and services	(2,307,108)	(120,647)		(76,810)		(2,208,786)	(105,692)		(91,568)
Gross profit	1,185,697	14,752	-	91,384		1,070,634	17,178	-	80,695
Operating (expenses) income	(283,151)	(8,340)	(32,245)	(58,465)		(160,187)	(8,367)	(97,596)	(54,616)
Finance income (costs), net	(187,295)	(1,004)	(13,938)	317		(249,300)	(1,676)	(6,032)	397
Income before income tax and social contribution	715,251	5,408	(46,183)	33,236		661,147	7,135	(103,628)	26,476
Current and deferred income tax and social contribution	(254,001)	(1,838)		(11,105)		(243,602)	(1,229)		(8,854)
(Loss) profit for the year, net	461,250	3,570	(46,183)	22,131		417,545	5,906	(103,628)	17,622

·       ITÁ ENERGÉTICA S.A. - (“ITASA”)

ITASA is a corporation established in July 1996 that was engaged to operate under a shared concession, the Itá Hydropower Plant (UHE Itá), with 1,450 MW of installed power, located on the Uruguay River, on the Santa Catarina and Rio Grande do Sul state border.

·       MRS LOGÍSTICA S.A. (“MRS”)

With registered offices in the City of Rio de Janeiro-RJ, this subsidiary is engaged in public railroad transportation, on the basis of an onerous concession, on the domain routes of the Southeast Grid of the federal railroad network (Rede Ferroviária Federal S.A. – RFFSA), located in the Southeast (Rio de Janeiro, São Paulo and Belo Horizonte. The concession has a 30-year term as from December 1, 1996, extendable for an equal term by exclusive decision of the concession grantor.

MRS may further engage in services involving transportation modes related to railroad transportation and participate in projects aimed at expanding the railroad service concessions granted.

For performance of the services covered by the concession for a, MRS leased from RFFSA for the same concession period, the assets required for operation and maintenance of the freight railroad transportation activities. At the end of the concession, all the leased assets are to be transferred to the ownership of the railroad transportation operator designated at that time.

The Company had a direct equity interest of 18.64% in the capital stock of MRS and an indirect equity interest of 18.63% through its subsidiary CSN Mineração S.A, consequently the total participation is 34.94%.

·         CONSÓRCIO DA USINA HIDRELÉTRICA DE IGARAPAVA

The Igarapava Hydroelectric Power Plant is located on the Grande River, in the city of Conquista, MG, and has installed capacity of 210 MW. It consists of 5 bulb-type generating units.

CSN holds a 17.92% investment in the consortium, whose specific purpose is the distribution of electric power, which is made according to the percentage equity interest of each company.

The balance of property, plant and equipment less depreciation as of December 31, 2017 is R$24,759 (R$25,921 as of December 31, 2016) and the expense in 2017 amounted to R$5,966 (R$6,041 in 2016).

·       CBSI - COMPANHIA BRASILEIRA DE SERVIÇOS DE INFRAESTRUTURA (“CBSI”)

CBSI is the result of a joint operation between CSN and CKTR Brasil Ltda. Based in the city of Araucária, PR, CBSI is primarily engaged in providing services CSN and other third-party entities, and can operate activities related to the refurbishment and maintenance of industrial machinery and equipment, construction maintenance, industrial cleaning, logistic preparation of products, among other activities.  

·         TRANSNORDESTINA LOGÍSTICA S.A. (“TLSA”)

TLSA is primarily engaged in the public service operation and development of a railroad network in the Northeast of Brazil network, comprising the rail segments Missão Velha-Salgueiro, Salgueiro-Trindade, Trindade-Eliseu Martins, Salgueiro- Porto de Suape, and Missão Velha-Porto de Pecém sections (“Railway System II”).

It is in pre-operational phase and should remain so until the completion of Rail Network II. The approved schedule, which considered the completion of the work by January 2017, is currently under review and discussion with the responsible bodies; However, Management understands that new deadlines for project completion will not have material adverse effects on the expected return on investment. After assessing this matter, its Management has concluded as appropriate the use of the accounting basis of operating continuity of the project in the preparation of its financial statements.

During the year 2017, the others shareholders of TLSA subscribed 2,912,997 shares in amounting to R$153,253, diluting CSN on TLSA share capital to 46.30%.  Therefore, due to the transactions described above and the participation change of the shareholders in the share capital of TLSA on 2017, the Company recognized a gain of R$2,814, recorded in equity in others comprehensive income.

The Management receives funds from its shareholders and third parties for completion of the works, which are expected to be available, based on agreements previously entered into and recent discussions between the involved parties. After analyzing this matter, Management concluded as adequate the use of the accounting base of the project’s going concern in the preparation of the financial statements for the year ended December 31, 2017.

In this direction, TLSA performed an impairment test of its own long-live assets using the discount cash flow method and considered the main assumptions, as follows:

Measurement of recoverable value:

Cash Flow Projection	Until 2057
Gross Margin	Based on market studies to capture operations costs and loads, according studied of market trends.
Estimated Costs	Costs based on studies and market trends.
Growth rate in perpetuity	Growth rate was not considered due to the projection model until the end of the concession.
Discount rate	Between 5.1% to 6.25% in real terms.

In addition, CSN, as an investor, performed an impairment test of its stake in TLSA, through TLSA ability to distribute dividends, methodology known as Dividend Discount Model, or DDM, to remunerate the capital invested by shareholders. In order to perform this test, some aspects were taken into account, such as:

·         The flow of dividends was obtained from the TLSA nominal cash flow;

·         The flow of dividends was calculated considering the annual percentages of participation, considering the dilutions of the CSN’s stakes due to the amortization of debts;

·         This flow of dividends was discounts at present value using cost of equity (Ke) embedded in the WACC rate of TLSA; and

·         This Ke obtained was the one calculated in the “rolling WACC” of TLSA. 

Another important aspect that was considered in the analysis of the impairment of CSN’s investment in the TLSA, was the need to apply an additional percentage of risk to the discount rate in addition to the one already used to determine the discounted cash flow of TLSA. Due to the sharing of investors risks, and by the fact that the asset that is being tested represents the cash-generating unit itself, which is equal to the legal entity, the risk determined by CSN Management is the same applied by TLSA when the evaluation of their own investments, not applying an additional risk factor to the model.

As a result, the Company which had recognized a loss in the surplus value of the investments of TLSA in the amount of R$ 387,989 recorded as other operating expenses and R$ 131,916 in deferred taxes in 2016, did not recognized additional impairment losses in the surplus-value of the investments in 2017.

8.e) Additional information on indirect participation in foreign operations

·         STAHLWERK THÜRINGEN GMBH (“SWT”)

SWT was formed from the former industrial steel complex of Maxhütte, located in the Germany city of Unterwellenborn, which produces steel shapes used for construction in accordance with international quality standards. Its main raw material is steel scrap, the Company has an installed production capacity of 1.1 million metric tons steel/year. The SWT is a wholly owned indirect subsidiary of CSN Steel S.L.U, a subsidiary of CSN.

·         COMPANHIA SIDERURGICA NACIONAL – LLC (“CSN LLC”)

The CSN LLC has an industrial plant in Terre Haute, Indiana State - USA, where is located the cold rolled and galvanized steel production lines, its installed production capacity is 800 thousand tons/year. CSN LLC is a wholly owned indirect subsidiary through CSN Steel S.L.U. after Merger, previously named CSN Americas S.L.U, a subsidiary of CSN.

·         LUSOSIDER AÇOS PLANOS S.A. (‘Lusosider’’)

Incorporated in 1996 in succession to Siderurgia Nacional (a company privatized by the Portuguese government that year), Lusosider is the only Portuguese company of the steel industry to produce cold rolled and galvanized anti-corrosion steel. Based in Paio Pires, The Lusosider has an installed capacity of about 550,000 tons / year to produce four large groups of steel products: galvanized sheet, cold rolled sheet, pickled and oiled plate. The products are manufactured by Lusosider and may be used in the packaging industry, construction (pipes and metallic structures) and in home appliance components.

8.f) Other investments

·       PANATLÂNTICA S. A. (“Panatlântica”)

Panatlântica is a publicly-held company, headquartered in the city of Gravataí, State of Rio Grande do Sul, engaged in the manufacturing, trade, import, export and processing of steel and ferrous or non-ferrous metals, coated or not. This investment is classified as available-for-sale and measured at fair value.

The Company currently holds 11.33% (11.35% as of December 31, 2016) of Panatlântica’s total share capital.

·       USINAS SIDERURGICAS DE MINAS GERAIS S.A. – USIMINAS (“USIMINAS”)

Usiminas, headquartered in Belo Horizonte, State of Minas Gerais, is engaged in steel and related operations.  Usiminas produces flat rolled steel in the Intendente Câmara and José Bonifácio de Andrada e Silva plants, located in Ipatinga, Minas Gerais, and Cubatão, São Paulo, respectively, the final product is sold in the domestic and foreign market. Usiminas also exploits iron ore mines located in Itaúna, Minas Gerais, to meet its verticalization and production cost optimization strategies. Usiminas also has service and distribution centers located in several regions of Brazil, and the Cubatão, São Paulo, and Praia Mole, Espírito Santo, all centers are located in strategic locations for the shipment of its production.

On April 9, 2014, the Administrative Council for Economic Defense (CADE - Conselho Administrativo de Defesa Econômica) issued its decision on the matter about the Usiminas shares held by CSN signing a Performance Commitment Agreement), also called TCD, between CADE and CSN. Under the terms of the decision of CADE and TCD, CSN must reduce its interest in Usiminas, within a specified period. The deadline and percentage reduction are confidential. In addition, the political rights in Usiminas will continue suspended until the Company reaches the limits established in the TCD.

In March 2016, the Board of Directors of Usiminas approved a capital increase of R $ 64,882, through the issue of up to 50,689,310 preferred shares. On April 22, 2016, CSN exercised its preemptive rights in full, paying R $ 11,603 for 9,064,856 preferred shares. This increase was approved by the Board of Directors of Usiminas on June 3, 2016.

On March 24, 2016, the Company requested to CADE (Brazilian Antitrust Agency) the flexibilization of the PAT (Performance Commitment Agreement (TCD), in order to enable the Company the exercise of certain political rights, namely the power to elect independent members of the board of directors and supervisory board. On April 27, 2016, CADE approved the Company’s request to permit such election. On April 28, at the Usiminas’ annual general meeting, the Company elected 2 independent members of the board of directors and 1 of the supervisory board, as well as the same number of alternates.

In April 2016, the Extraordinary Shareholders' Meeting of Usiminas approved a capital increase of R$ 1,000,000 through the issue of 200,000,000 common shares. On May 20, 2016, CSN exercised its preemptive right in full, paying R$ 178,832 for 35,766,351 common shares. This increase was approved by the Extraordinary General Meeting of Usiminas on July 19, 2016.

As of December 31, 2017 and 2016, the Company’s interest in Usiminas’s capital was 15.19% in common shares and 20.86% in preferred shares.

USIMINAS is listed on the São Paulo Stock Exchange (“B3 S.A.- Brasil, Bolsa, Balcão”: USIM3 and USIM5).

•     ARVEDI METALFER DO BRASIL S.A. (“Arvedi”)

Arvedi, headquartered in Salto, State of São Paulo, is engaged in pipe production. As of December 31, 2017 and 2016 CSN held 20.00% of Arvedi’s share capital.

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9. PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [abstract]

PROPERTY, PLANT AND EQUIPMENT

							Consolidated
	Land	Buildings and Infrastructure	Machinery, equipment and facilities	Furniture and fixtures	Construction in progress	Other (*)	Total
Balance at December 31, 2015	263,539	2,689,241	11,072,244	38,730	3,199,386	563,086	17,826,226
Cost	263,539	3,429,573	18,601,088	182,830	3,199,386	811,080	26,487,496
Accumulated depreciation		(740,332)	(7,528,844)	(144,100)		(247,994)	(8,661,270)
Balance at December 31, 2015	263,539	2,689,241	11,072,244	38,730	3,199,386	563,086	17,826,226
Effect of foreign exchange differences	(13,348)	(38,538)	(149,908)	(915)	(8,345)	(2,973)	(214,027)
Acquisitions	4	100	205,488	867	1,412,685	16,987	1,636,131
Capitalized interest (notes 24 and 29)					215,794		215,794
Write-off (note 23)	(144)	(2,723)	(10,423)	(77)	(41,093)	(20,785)	(75,245)
Depreciation (note 22)		(116,760)	(1,096,668)	(5,822)		(34,929)	(1,254,179)
Transfers to other asset categories	14,951	298,121	2,318,728	444	(2,502,615)	(129,629)
Transfers to intangible assets					(16,538)		(16,538)
Acquisition control - CGPAR			7,377	189		575	8,141
Goodwill - Aquisition control CGPAR			57,889				57,889
Transfer of Metalic - Held for sale	(373)	(13,466)	(30,440)	(208)	(261)	(269)	(45,017)
Others		(296)	(4,657)	(45)	1,851	(149)	(3,296)
Balance at December 31, 2016	264,629	2,815,679	12,369,630	33,163	2,260,864	391,914	18,135,879
Cost	264,629	3,637,903	20,712,371	173,821	2,260,864	676,529	27,726,117
Accumulated depreciation		(822,224)	(8,342,741)	(140,658)		(284,615)	(9,590,238)
Balance at December 31, 2016	264,629	2,815,679	12,369,630	33,163	2,260,864	391,914	18,135,879
Effect of foreign exchange differences	8,702	21,737	72,811	593	3,076	265	107,184
Acquisitions	8,241	1,196	91,251	1,171	951,796	10,091	1,063,746
Capitalized interest (notes 24 and 29)					91,957		91,957
Write-off (note 23)	653	30,634	(30,383)	(37)	(2,536)	(26,388)	(28,057)
Depreciation (note 22)		(156,580)	(1,174,852)	(5,656)		(43,105)	(1,380,193)
Transfers to other asset categories	(2,485)	84,281	659,119	3,869	(805,207)	60,423
Transfers to intangible assets					(26,183)		(26,183)
Others			(1,656)		2,168	(6)	506
Balance at December 31, 2017	279,740	2,796,947	11,985,920	33,103	2,475,935	393,194	17,964,839
Cost	279,740	3,819,929	21,674,362	164,152	2,475,935	669,096	29,083,214
Accumulated depreciation		(1,022,982)	(9,688,442)	(131,049)		(275,902)	(11,118,375)
Balance at December 31, 2017	279,740	2,796,947	11,985,920	33,103	2,475,935	393,194	17,964,839

(*) Refer basically to railway assets such as courtyards, tracks and leasehold improvements, vehicles, hardware, mines, ore deposits, and spare part inventories.

The breakdown of the projects that comprise construction in progress is as follows:

					Consolidated
Project description	Start date	Completion date		12/31/2017	12/31/2016
Logistics
Current investments to maintain current operations at their full capacity.				106,956	103,284
				106,956	103,284
Mining
Expansion of Casa de Pedra Mine capacity production.	2007	2020	(1)	750,999	689,160
Expansion of TECAR export capacity.	2009	2022	(2)	275,811	253,545
Current investments to maintain current operations at their full capacity.				408,522	261,056
				1,435,332	1,203,761
Steel
Supply of 16 torpedo’s cars for operation in the steel industry.	2008	2019		99,483	91,779
Current investments to maintain current operations at their full capacity.			(3)	228,029	307,448
				327,512	399,227
Cement				554,865	529,631
Construction of cement plants.	2011	2020	(4)	51,270	24,961
Current investments to maintain current operations at their full capacity.				606,135	554,592
Total Construction in Progress				2,475,935	2,260,864

(1) Estimated completion date of the Central Plant Step 1;

(2) Estimated completion date of phase 60 Mtpa;

(3) Refers substantially to the reforming of batteries for coke ovens and reuse of the carbochemical cooling waters;

(4) Refers substantially to the acquisition of new Integrated Cement Plants

The average estimated useful lives are as follows (in years):   

		Consolidated
	12/31/2017	12/31/2016
Buildings	39	41
Machinery, equipment and facilities	21	18
Furniture and fixtures	12	12
Other	17	14

9.a) Capitalized Interest

As of December 31, 2017, the Company capitalized borrowing costs amounting to R$91,957 in consolidated financial statement (as of December 31, 2016, R$215,794). These costs are basically estimated for the cement and mining projects, mainly relating to: new integrated cement plant; and (ii) Casa de Pedra (MG) expansion and TECAR (RJ), see notes 24 and 29.

The rates used to capitalize borrowing costs are as follows:

Rates	12/31/2017	12/31/2016
Unspecified projects	8.63%	10.48%

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10. INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2017

Intangible Assets

INTANGIBLE ASSETS

10. INTANGIBLE ASSETS

							Consolidated
	Goodwill	Customer relationships	Software	Trademarks and patents	Rights and licenses (*)	Others	Total
Balance at December 31, 2015	3,604,022	413,276	75,237	143,636	3,185,700	395	7,422,266
Cost	3,974,128	549,302	173,154	143,636	3,185,700	395	8,026,315
Accumulated amortization	(260,776)	(136,026)	(97,917)				(494,719)
Adjustment for accumulated recoverable value	(109,330)						(109,330)
Balance at December 31, 2015	3,604,022	413,276	75,237	143,636	3,185,700	395	7,422,266
Effect of foreign exchange differences		(74,167)	(236)	(27,440)		(79)	(101,922)
Acquisitions and expenditures			2,995			124	3,119
Transfer of property, plant and equipment			16,538				16,538
Writte-of	(13,091)		(3)				(13,094)
Amortization (note 22)		(41,449)	(26,093)		(776)		(68,318)
Aquisition of control - CGPAR			47				47
Transfer of Metalic - Held for sale			(232)				(232)
Balance at December 31, 2016	3,590,931	297,660	68,253	116,196	3,184,924	440	7,258,404
Cost	3,834,234	444,635	183,166	116,196	3,185,700	440	7,764,371
Accumulated amortization	(133,973)	(146,975)	(114,913)		(776)		(396,637)
Adjustment for accumulated recoverable value	(109,330)						(109,330)
Balance at December 31, 2016	3,590,931	297,660	68,253	116,196	3,184,924	440	7,258,404
Effect of foreign exchange differences		41,916	183	17,941		65	60,105
Acquisitions and expenditures			622				622
Transfer of property, plant and equipment			26,183				26,183
Disposals			(70)				(70)
Amortization (note 22)		(38,701)	(21,986)		(12,455)		(73,142)
Aquisition of control - CGPAR						(56)	(56)
Balance at December 31,2017	3,590,931	300,875	73,185	134,137	3,172,469	449	7,272,046
Cost	3,834,234	513,068	167,162	134,137	3,185,701	449	7,834,751
Accumulated amortization	(133,973)	(212,193)	(93,977)		(13,232)		(453,375)
Adjustment for accumulated recoverable value	(109,330)						(109,330)
Balance at December 31,2017	3,590,931	300,875	73,185	134,137	3,172,469	449	7,272,046

(*) Composed mainly by mineral rights with estimated resources of 1,101 million tons. Corresponding amortization is recorded based on production volumes.

The estimated average useful lives by nature are as follows (in years): 

		Consolidated
	12/31/2017	12/31/2016
Software	8	8
Customer relationships	13	13

10.a) Impairment testing

The goodwill arising from expectations for future profitability of the companies acquired and the intangible assets with indefinite useful lives (trademarks) have been allocated to the operational divisions (cash-generating units) of CSN, which represent the lowest level of assets or group of assets. When a CGU has an intangible asset with indefinite useful life allocated, the Company performs an impairment test. The CGU with intangible assets in this situation are as follows:

						Consolidated
		Goodwill		Trademarks		Total
Cash generating unity	Segment	12/31/2017	12/31/2016	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Packaging	Steel	158,748	158,748			158,748	158,748
Long steel (1)	Steel	235,595	235,595	134,137	116,196	369,732	351,791
Mining (2)	Mining	3,196,588	3,196,588			3,196,588	3,196,588
		3,590,931	3,590,931	134,137	116,196	3,725,068	3,707,127

(1) The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows.

(2) Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineração, an operation that was concluded in December 2015. From 2016, the balance started to be tested annually for impairment analysis.

The impairment testing of the goodwill and the trademark include the balance of property, plant and equipment of the cash-generating units and also the intangible. The test is based on the comparison between the actual balances and the value in use of those units, determining based on the projections of discounted cash flows and use of such assumptions and judgements as: growth rate, costs and expenses, discount rate, working capital, future Capex investment and macroeconomic assumptions observable in the market.

The main assumptions used in calculations of value in use at December 31, 2017 are as follows:

	Metal Packaging	Long Steel (**)	Mining
Measurement of recoverable value	Discounted Cash Flow	Discounted Cash Flow	Discounted Cash Flow
Cash flow projection	Until 2028	Until 2028	Until 2056
Gross Margin	Gross margin updated based on historical data, impacts of business restructuring and market trends	Gross margin updated based on historical data and market trends.	Average of the gross margin of each Cash generating units based on the history and projections to the next 39 years and long-term price and exchange rate curves from industry reports.
Cost Atualization	Cost based on historical data of each product and impacts of business restructuring.	Costs based on historical data and market trends.	Costs based on historical data, mix of products and market trends.
Growth rate	Without growth in real terms, only updated by long term inflation of 4.0% .	Without growth in real terms, only updated by long term inflation of 2.0% , Euro zone.	The growth rate was not considered.
Discount rate	These cash flows were considered using a discount rate after taxes between 7% and 13% in real terms. The discount rate was based on the weighted average cost of capital ("WACC") that reflects the specific risk of each segment.

(*) Refer to assets of subsidiary SWT, located in Germany. The discount rate was applied on the discounted cash flow prepared in Euros, the functional currency of this subsidiary.

Based on the analyses conducted by Management, it was not necessary to record losses by impairment to those assets for the year ended on December 31, 2017.

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11. BORROWINGS, FINANCING AND DEBENTURES

12 Months Ended

Dec. 31, 2017

Borrowings Financing And Debentures

BORROWINGS, FINANCING AND DEBENTURES

11. BORROWINGS, FINANCING AND DEBENTURES

The balances of borrowings, financing and debentures, which are carried at amortized cost, are as follows:

					Consolidated
	Rates p.a.  (%)	Current liabilities		Non-current liabilities
		12/31/2017	12/31/2016	12/31/2017	12/31/2016
FOREIGN CURRENCY
Prepayment	1% to 3.5%	2,174	110,944	489,584	482,347
Prepayment	3.51% to 8%	788,989	438,802	3,607,925	4,290,062
Perpetual bonds	7%	4,503	4,436	3,308,000	3,259,100
Fixed rate notes	4.14% to 10%	139,184	137,126	5,612,342	5,529,380
ACC	3.135%	379,822
Others	1.2% to 8%	251,630	95,983	197,130	259,262
		1,566,302	787,291	13,214,981	13,820,151
LOCAL CURRENCY
BNDES/FINAME	1,3% + TJLP and fixed rate 2.5% to 6% + 1,5%	71,121	73,736	960,872	1,012,268
Debentures	110.8% to 113.7% of CDI	523,252	538,003	770,767	1,270,383
Prepayment	109.5% to 116.5% of CDI and fixed rate of 8%	1,789,737	570,778	3,378,333	5,080,000
CCB	112.5% and 113% of CDI	2,601,352	181,143	4,693,000	7,200,000
		4,985,462	1,363,660	9,802,972	14,562,651
Total borrowings and financing (Note 12 I)		6,551,764	2,150,951	23,017,953	28,382,802
Transaction costs and issue premiums		(24,862)	(33,503)	(34,011)	(59,232)
Total borrowings and financing + transaction costs		6,526,902	2,117,448	22,983,942	28,323,570

11.a) Maturities of borrowings, financing and debentures presented in non-current liabilities

As of December 31, 2017, the breakdown of principal plus interest of long-term liabilities as borrowings, financing and debentures by maturity date is presented as follows:

								Consolidated
	Prepayment	Bonds		Perpetual Bonds	CCB	Othes	Total
2019	2,824,551	2,238,034	(*)		1,507,000	670,383	7,239,968	31%
2020	2,409,959	3,374,308	(*)		1,508,000	280,243	7,572,510	33%
2021	1,276,969				774,000	177,659	2,228,628	10%
2022	964,363				784,000	95,484	1,843,847	8%
2023					120,000	56,631	176,631	1%
After 2023						648,369	648,369	3%
Perpetual bonds				3,308,000			3,308,000	14%
	7,475,842	5,612,342		3,308,000	4,693,000	1,928,769	23,017,953	100%

(*) In February 2018, the Company concluded the renegotiation of its debt with Banco do Brasil S.A (“BB”), as well as the issuance of debt instruments and repurchase of US$350 million (Tender Offer), as described in more detail in note 31 - Events subsequent.

11.b) Amortization and new borrowings, financing and debentures

The table below presents the new funding transactions and amortization during the year:

		Consolidated
	12/31/2017	12/31/2016
Opening balance	30,441,018	34,282,515
Funding Transactions	538,771	30,034
Forfaiting funding / Drawee Risk		78,240
Repayment	(1,528,023)	(695,938)
Payments - Forfaiting / Drawee Risk		(407,155)
Payment of interest and other charges	(2,634,931)	(3,044,342)
Payment of interest and other charges – Forfaiting / Drawee		(5,694)
Provision of interest and other charges	2,438,555	3,156,120
Provision of charges -  Forfaiting / Drawee Risk		4,237
Others (1)	255,454	(2,956,999)
Closing balance	29,510,844	30,441,018

(1) Includes unrealized monetary and foreign exchange variations.

In 2017, the Group captures and amortized loans as shown below:

·      Funding

				Consolidated
Transaction	Financial institution	Date	Amount	Maturity
CDC - ERSA	BANCO MERCEDEZ BENS	August/17	4,265	October/21
Advance contract exchange (ACC)	BB	September/17	171,000	may/18
Fixed Rate Notes	JP MORGAN	November/17	163,506	November/18
Advance contract exchange (ACC) (*)	BB	December 2017	200,000	February/18
Total			538,771

(*) The operation was amortized in February 02, 2018

·      Amortization

		Consolidated
Transaction	Payment of principal	Debt charges
Bonds	-	578,482
Fixed Rate Notes	90,028	12,736
Debentures	479,617	201,118
Bank Credit Bill	-	869,717
Export Credit Note	400,000	668,325
Pre - Export Payment	490,803	226,894
BNDES/FINAME	67,575	75,539
Advance contract exchange (ACC)	-	2,120
Total	1,528,023	2,634,931

Covenants

The Company's loan agreements establish the fulfillment of certain non-financial obligations, as well as maintenance of certain parameters and performance indicators, such as disclosure of its audited financial statements according to regulatory deadlines or payment of commission on risk assumption, if the net debt-EBITDA ratio reaches the levels in those agreements, under penalty of anticipated maturity. Until now, the Company is in compliance with all financial and non-financial obligations (covenants) of its current contracts.

On December 31, 2017, the Company has accrued R$ 30,843 as the commission on risk assumption in the current liabilities.

11.c) Guarantees

The Company is the guarantor or is liable for the guarantees given to its subsidiaries and joint ventures as follows:

	Currency	Maturities	Borrowings		Tax foreclosure		Other		Total
			12/31/2017	12/31/2016	12/31/2017	12/31/2016	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Transnordestina Logísitca	R$	Up to 09/19/2056 and Indefinite	2,541,347	2,547,937	22,214	23,007	3,866	4,866	2,567,427	2,575,810
FTL - Ferrovia Transnordestina	R$	11/15/2020	69,405	76,700					69,405	76,700
Sepetiba Tecon	R$	Indefinite					36,308	28,914	36,308	28,914
Cia Metalurgica Prada	R$	Indefinite			333	333	18,540	19,340	18,873	19,673
CSN Energia	R$	Indefinite			2,829	2,829			2,829	2,829
CSN Mineração	R$	09/22/2022	2,000,000	2,000,000				2,520	2,000,000	2,002,520
Estanho de Rondônia	R$	07/15/2022	3,153						3,153
Total in R$			4,613,905	4,624,637	25,376	26,169	58,714	55,640	4,697,995	4,706,446
CSN Islands XI	US$	09/21/2019	750,000	750,000					750,000	750,000
CSN Islands XII	US$	Perpetual	1,000,000	1,000,000					1,000,000	1,000,000
CSN Resources	US$	07/21/2020	1,200,000	1,200,000					1,200,000	1,200,000
Total in US$			2,950,000	2,950,000					2,950,000	2,950,000
CSN Steel S.L.	EUR	01/31/2020	120,000	120,000					120,000	120,000
Lusosider Aços Planos	EUR	Indefinite	25,000	25,000					25,000	25,000
Total in US$			145,000	145,000					145,000	145,000
Total in R$			10,334,149	10,112,913					10,334,149	10,112,913
			14,948,054	14,737,550	25,376	26,169	58,714	55,640	15,032,144	14,819,359

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12. FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2017

Financial Instruments

FINANCIAL INSTRUMENTS

I - Identification and measurement of financial instruments

The Company enters into transactions involving various financial instruments, mainly cash and cash equivalents, including short-term investments, marketable securities, trade receivables, trade payables, and borrowings and financing. The Company also enters into derivative transactions, especially interest rate and foreign exchange and rate swaps.

Considering the nature of these instruments, their fair value is basically determined by using Brazil’s money market and mercantile and futures exchange quotations. The amounts recognized in current assets and current liabilities have immediate liquidity or short-term maturity, mostly less than three months. Considering the maturities and characteristics of such instruments, their carrying amounts approximate their fair values.

·           Classification of financial instruments

											Consolidated
Consolidated						12/31/2017					12/31/2016
	Notes	Available for sale	Fair value through profit or loss	Loans and receivables	Others liabilities measured at amortized cost	Balances	Available for sale	Fair value through profit or loss	Loans and receivables	Other liabilities measured at amortized cost	Balances
Assets
Current
Cash and cash equivalents	3			3,411,572		3,411,572			4,871,162		4,871,162
Short - term investments	4			735,712		735,712			760,391		760,391
Trade receivables	5			2,197,078		2,197,078			1,904,630		1,904,630
Derivative financial instruments								2,298			2,298
Trading securities	7		2,952			2,952		2,966			2,966
Loans - related parties	7			2,441		2,441
Dividends receivable	5				41,528	41,528				37,679	37,679
Total			2,952	6,346,803	41,528	6,391,283		5,264	7,536,183	37,679	7,579,126
Non-current
Other trade receivables	7			20,024		20,024			15,291		15,291
Investments	8	2,222,433				2,222,433	1,374,268				1,374,268
Loans - related parties	7			554,694		554,694			479,960		479,960
Total		2,222,433		574,718		2,797,151	1,374,268		495,251		1,869,519
Total Assets		2,222,433	2,952	6,921,521	41,528	9,188,434	1,374,268	5,264	8,031,434	37,679	9,448,645
Liabilities
Current
Borrowings and financing	11				6,551,764	6,551,764				2,150,951	2,150,951
Derivative financial instruments								121			121
Trade payables					2,460,774	2,460,774				1,763,206	1,763,206
Dividends and interest on capital	13				510,692	510,692				484,570	484,570
Total					9,523,230	9,523,230		121		4,398,727	4,398,848
Non-current
Borrowings and financing	11				23,017,953	23,017,953				28,382,802	28,382,802
Total					23,017,953	23,017,953				28,382,802	28,382,802
Total Liabilities					32,541,183	32,541,183		121		32,781,529	32,781,650

·           Fair value measurement

The following table shows the financial instruments recognized at fair value through profit or loss using a valuation method:

Consolidated			12/31/2017			12/31/2016
	Level 1	Level 2	Balances	Level 1	Level 2	Balances
Assets
Current assets
Financial assets at fair value through       profit or loss
Derivative financial instruments					2,298	2,298
Trading securities	2,952		2,952	2,966		2,966
Non-current assets
Available-for-sale financial assets
Investments	2,222,433		2,222,433	1,374,268		1,374,268
Total Assets	2,225,385	-	2,225,385	1,377,234	2,298	1,379,532
Liabilities
Current liabilities
Financial liabilities at fair value through profit or loss
Derivative financial instruments					121	121
Total liabilities		-	-		121	121

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Includes observable inputs in market such as interest rates, exchange etc., but not prices traded in active markets.

There are no assets and liabilities classified as level 3.

II – Investments in financial instruments classified as available-for-sale and measured at fair value through OCI  

The Company has investments in common (USIM3) and preferred (USIM5) shares of Usiminas (“Usiminas Shares”), designated as available-for-sale financial assets. The Company adopts this designation because the nature of the investment is not comprised in any other categories of financial instruments (loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss). The asset is classified as a non-current asset in line item “investments” and is carried at fair value based on the quoted price on the stock exchange (B3 S.A.). According to the Company's policy, the gains and losses arising from changes in the price of shares are recorded directly in equity, as other comprehensive income.

The Company's accounting policy requires a quarterly analysis based on quantitative and qualitative information available in the market from the moment the instrument demonstrates a drop of more than 20% of their market value or from a significant drop in market value compared to their acquisition cost for more than 12 months. If the Company concludes that there was a significant drop in the price of the instrument, an impairment loss must be recognized. In 2012, considering the price of Usiminas shares on the B3 S.A, was recorded the first impairment loss on that shares. According to this policy, whenever the share price reached a level lower than the last record impairment, the Company should record further losses, redefining the new minimum threshold value of the shares.

During the year 2017 and 2016, there was no impairment recorded and the gain from the change in share price in the period was recorded in other comprehensive income. The impairment recorded as of December 31, 2015 amounted R$555,298.

Class of shares	Quantity	12/31/2017		Quantity	12/31/2016		Variation in the year
		Share price	Closing Balance		Share price	Closing Balance	Share price	Variation in the carrying amount
Common	107,156,651	10.83	1,160,506	107,156,651	8.26	885,114	2.57	275,392
Preferred	114,280,556	9.10	1,039,953	114,280,556	4.10	468,550	5.00	571,403
	221,437,207		2,200,459	221,437,207		1,353,664		846,795

As of December 31, 2017 and 2016, the Company’s interest in Usiminas’s capital was 15.19% in common shares and 20.86% in preferred shares. 

·       Share market price risks

The Company is exposed to the risk of changes in share prices due to the investments made and classified as available-for-sale.

According to the Company’s accounting policies, any negative changes in the investment in Usiminas considered significant (impairment) are recognized in profit or loss and the other changes that not occur from impairment are recognized in comprehensive income until the investment is realized.

As of December,31 2017, the amount recognized in comprehensive income for investments available for sale, net of taxes is R$1,559,680 (R$678,035 as of December 31, 2016).

III - Financial risk management

The Company follows strategies of managing its risks, with guidelines regarding the risks incurred by the company. The nature and general position of financial risks are regularly monitored and managed in order to assess the results and the financial impact on cash flow. The credit limits and the quality of counterparties’ hedging instruments are also periodically reviewed.  

The market risks are hedged when it is considered necessary to support the corporate strategy or when it is necessary to maintain a level of financial flexibility.

Under the terms of the risk management policy, the Company can manage some risks by using derivative instruments not associated to any speculative deals or short sales.

12.a) Foreign exchange and interest rate risks

·           Exchange rate risk

The exchange rate risk arises from the existence of assets and liabilities denominated in US dollars or Euros, since the Company’s functional currency is the Real. Net exposure is the result of offsetting the natural currency exposure by hedging instruments adopted by CSN.

The consolidated net exposure as of December 31, 2017 is as follows:

		12/31/2017
Foreign Exchange Exposure	(Amounts in US$’000)		(Amounts in €’000)
Cash and cash equivalents overseas	777,310		2,857
Trade receivables	310,642		2,799
Other assets	3,283		3,636
Total assets	1,091,235		9,292
Borrowings and financing	(4,332,686)		(73,186)
Trade payables	(97,622)		(1,941)
Other liabilities	(3,984)		(3,368)
Total liabilities	(4,434,292)		(78,495)
Foreign exchange exposure	(3,343,057)		(69,203)
Cash flow hedge accounting	1,317,667
Net Investment hedge accounting			72,000
Net foreign exchange exposure	(2,025,390)		2,797
Perpetual Bonds	1,000,000
Net foreign exchange exposure excluding perpetual bonds	(1,025,390)		2,797

CSN is in the process of redefining its currency hedging strategy. The company has focused its hedge strategy on preserving its cash flow, so it is evaluating a replacement of the exposure generated by the settlement of derivatives with new hedge accounting designations, capturing the existing natural hedges, as well as using other derivative instruments with the purpose of hedging CSN's future cash flows. 

·           Interest rate risk

Risk arises from short and long term liabilities with fixed or post fixed interest rates and inflation rates.

Item 12 b) shows the derivatives and hedging strategies to protect exchange and interest rates risks.

12.b) Hedging instruments: Derivative and hedge accounting

CSN uses several instruments for protection of foreign currency risk and interest rate risk, as shown in the following topics:

·       Portfolio of derivative financial instruments

										Consolidated
					12/31/2017				12/31/2016	12/31/2017
			Appreciation (R$)		Fair value (market)		Appreciation (R$)		Fair value (market)	Impact on finance income (cost) in 2017
Counterparties	Functional Currency	Notional amount	Asset position	Liability position	Amounts receivable / (payable)	Notional amount	Asset position	Liability position	Amounts receivable / (payable)
BNPP	Dollar					10,250	33,435	(31,137)	2,298	(229)
Total dollar-to-euro swap						10,250	33,435	(31,137)	2,298	(229)
BM&FBovespa	Real					1,641,378	-	-	(121)	28,503
Total DI future						1,641,378	-	-	(121)	28,503
							33,435	(31,137)	2,177	28,274

Forward DI contracts

The Company to hedge part or all of its exposure to assets whose interest rates are pre-fixed may obtain DI derivative operations on the stock exchange or the over-the-counter market, linking these assets to market trends. As of December 31, 2016 the Company held in its portfolio forward CDI rate contracts traded at B3 S.A. which totaled the notional amount of R$ 1.641 billion. 

The forward DI contract is defined as the accumulative value of the average daily DI rates of one day, calculated between the date of the transaction and the last trading date, being used to hedge and manage the interest rate risk of assets / liabilities in DI. The purchase and sale transactions, originally contracted in rate, will be converted into sale and purchase transactions, respectively, in PU.

The contract settlement is exclusively financial, on the due date and occurs daily until the maturity. The position held by the Company is set at the end of each session based on the difference of the day's settlement price (D0) compared to the previous day price (D-1), and is settled on the following day (D+1), according to the rules of B3 S.A.

 For as much as the Company maintains contracts traded on the B3 S.A, it is required by the clearing house a guarantee margin to cover those commitments in these contracts, which is only a percentage of the contract´s total amount. CSN maintains securities linked to this guarantee margin, consisting mainly of government bonds, which will be redeemed after the end position. The amounts of these investments are described in Note 4.

Dollar x Euro swap

The subsidiary Lusosider has derivative transactions to protect its dollar exposure versus euro.

·         Classification of the derivatives in the balance sheet and statement of income

					12/31/2017
Instruments	Assets		Liabilities		Net Financial Income (Note 24)
	Current	Total	Current	Total
Dollar - to - euro swap					(229)
Future DI					28,503
					28,274
					12/31/2016
Instruments	Assets		Liabilities		Net Financial Income (Note 24)
	Current	Total	Current	Total
Future Dollar BM&F					(805,760)
Dollar - to - euro swap	2,298	2,298			(6,467)
Fixed rate - to - CDI swap (*)					(299)
CDI - to - fixed rate swap (*)					(63)
Future DI			(121)	(121)	5,829
	2,298	2,298	(121)	(121)	(806,760)

(*) Swap positions were settled in October 2017.

·       Hedge accounting – cash flow

Beginning November 1, 2014, the Company formally designated cash flow hedging relationships to protect highly probable future cash flows against US dollar fluctuations.

In order to better reflect the accounting impacts of this foreign exchange hedging strategy on its profit, CSN designated part of its US dollar-denominated liabilities as a hedging instrument of its future exports. As a result, foreign exchange differences arising on translating the designated liabilities will be temporarily recognized in shareholders’ equity and allocated to profit or loss when such exports are carried out, which will allow recognizing the US dollar impact on liabilities and exports concurrently. Note that adopting hedge accounting does not entail contracting any financial instrument. As of December 31, 2017 the Company designated for hedge accounting US$1.3 billion in exports to be carried out between January, 2018 to October, 2022.

To support these designated amounts, the Company prepared formal documentation indicating how hedging is aligned with the goal and strategy of CSN’s Risk Management by identifying the hedging instruments used, the hedging purpose, the nature of the hedged risk, and showing the expected high effectiveness of the designated relationships. The designated debt instruments total an amount equivalent to the portion of future exports. Thus, the exchange differences on translating the instrument and the hedged item are similar. According to the Company’s accounting policy, continuous assessments of the prospective and retrospective effectiveness must be carried out by comparing the designated amounts with the expected amounts, approved in Management’s budgets, and the actual export amounts.

Through hedge accounting, the exchange gains and losses of the debt instruments do not immediately affect the Company’s profit or loss except to the extent that exports are carried out.

The table below shows a summary of the hedging relationships as of December 31, 2017:

									12/31/2017
Designation Date	Hedging Instrument	Hedged item	Type of hedged risk	Hedged period	Exchange rate on designation	Designated amounts (US$’000)	Amortizated part (USD'000)	Effect on Result (*) (R$'000)	Impact on Shareholders' equity (R$'000))
3/11/2014	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2016 - September 2019	2.4442	500,000	(133,334)	53,203	(316,726)
1/12/2014	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2015 - February 2019	2.5601	175,000	(114,999)	38,937	(44,880)
12/18/2014	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	May 2020	2.6781	100,000			(62,990)
07/21/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	July 2019 - March 2021	3.1813	60,000			(7,602)
07/23/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	July 2019 - March 2021	3.2850	100,000			(2,300)
07/23/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.2850	30,000			(690)
07/24/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3254	100,000			1,740
07/27/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3557	25,000			1,193
07/27/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3557	70,000			3,339
07/27/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3557	30,000			1,431
07/28/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3815	30,000			2,205
1/8/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	(1)	3.3940	(9,000)			(774)
3/8/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3940	355,000			30,530
Total						1,566,000	(248,333)	92,140	(395,524)

(*) The effect on the result was recorded in other operating expenses.

(1) During the designation on August 2015, we reviewed the future export projections and identified that the amount of US$ 9 million designated previously were not highly probable due to Platt’s quotation reduction. Therefore, the hedge relationship was discontinued from August 2015. The exchange rate of the effective period remains recorded in Stockholders' Equity until the time of debt settlement, in October 2022.

In the hedging relationships described above, the amounts of the debt instruments were fully designated for equivalent iron ore export portions.

The movements in the hedge accounting amounts recognized in shareholders’ equity as of December 31, 2017 are as follows:

	12/31/2015	Movement	Realization	12/31/2016	Movement	Realization	12/31/2017
Cash flow hedge accounting	1,520,089	(1,005,968)	(77,444)	436,677	50,987	(92,140)	395,524
Fair value of cash flow hedge, net of taxes	1,520,089	(1,005,968)	(77,444)	436,677	50,987	(92,140)	395,524

As of December 31, 2017 the hedging relationships established by the Company were effective, according to the prospective tests conducted. Thus, no reversal for hedge accounting ineffectiveness was recognized. 

Net investment hedge in foreign subsidiaries

CSN has a natural foreign exchange exposure in Euros substantially arising from a loan made by a foreign subsidiary with functional currency in Reais, for the acquisition of investments abroad whose functional currency is Euro. Such exposure arises from converting the balance sheets of these subsidiaries for consolidation in CSN, and the exchange rate of the loans affected the income statement in the financial result item and the exchange variation of the net assets of the foreign operation directly affected the equity in other comprehensive income.

As from September 1^st, 2015 CSN began to adopt hedge of net investment to eliminate exposure and cover future fluctuations of the Euro on such loans. Non-derivative financial liabilities have been designated represented by loan agreements with financial institutions in the amount of € 120 million. The carrying amounts on December 31, 2017 are:

						12/31/2017
Designation Date	Hedging Instrument	Hedged Item	Type of Hedged Risk	Exchange Rate on designation	Designated amounts (EUR'000)	Amortized part (USD’000)	Impact on shareholders' equity
09/01/2015	Non-derivative financial liabilities in EUR – Debt contract	Investments in subsidiaries which EUR is the functional currency	Foreign exchange - R$ vs. EUR spot rate	4.0825	120,000	(48,000)	(17,911)
Total					120,000	(48,000)	(17,911)

The changes in the amounts related to net investment hedge as of December 31, 2017 are presented below:

	12/31/2015	Movement	Realization	12/31/2016	Movement	Realization	12/31/2017
Net investment hedge accounting	20,148	(77,952)		(57,804)	39,893		(17,911)
Fair value of net investment hedge in foreign operations	20,148	(77,952)		(57,804)	39,893		(17,911)

On December 31, 2017 hedge relationships established by the Company found to be effective, according to prospective tests. Therefore, no reversal by ineffectiveness of the hedge was recorded.

12.c) Sensitivity analysis

 We present below the sensitivity analysis for currency risk and interest rate.

·       Sensitivity analysis of Derivative Financial Instruments and consolidated Foreign Exchange Exposure

The Company considered scenarios 1 and 2 as 25% and 50% of deterioration for volatility of the currency, using as reference

the closing exchange rate as of December 31, 2017.

The currencies used in the sensitivity analysis and its scenarios are shown below:

				12/31/2017
Currency	Exchange rate	Probable scenario	Scenario 1	Scenario 2
USD	3.3080	3.2381	4.1350	4.9620
EUR	3.9693	4.0295	4.9616	5.9540

			12/31/2017
Interest	Interest rate	Scenario 1	Scenario 2
CDI	6.89%	8.61%	10.34%
TJLP	7.00%	8.75%	10.50%
LIBOR	1.84%	2.30%	2.76%

The effects on income statement, considering the scenarios 1 and 2 are shown below:

					12/31/2017
Instruments	Notional	Risk	Probable scenario (*)	Scenario 1	Scenario 2
Hedge accounting of exports	1,317,667	Dollar	(92,105)	1,089,711	2,179,422
Currency position	(3,343,057)	Dollar	233,680	(2,764,708)	(5,529,416)
(not including exchange derivatives above)
Consolidated exchange position	(2,025,390)	Dollar	141,575	(1,674,997)	(3,349,994)
(including exchange derivatives above)
Net Investment hedge accounting	72,000	Euro	4,334	71,447	142,894
Currency position	(69,203)	Euro	(4,166)	(68,672)	(137,344)
Consolidated exchange position	2,797	Euro	168	2,775	5,550
(including exchange derivatives above)

(*) The probable sceneries were calculated considering the following variations to the specified risks: Real x Dollar – appreciation of Real in 2.11% / Real x Euro – appreciation of Real in 1.52%.  Source: Quotation from Central Bank of Brazil and Central Bank of Europe on 02/16/2018.

·       Sensitivity analysis of changes in interest rates

The Company considered the scenarios 1 and 2 as 25% and 50% of evolution for volatility of the interest as of December 31, 2017.

				Consolidated
					Impact on profit or loss
Changes in interest rates	% Yearly	Assets	Liabilities	Probable scenario (*)	Scenario 1	Scenario 2
TJLP	7.00		(1,003,712)	(3,202)	(17,565)	(35,130)
Libor	1.84		(4,844,015)	(44,657)	(22,247)	(44,494)
CDI	6.89	644,525	(13,550,383)	(206,061)	(222,303)	(444,606)

(*) The sensitivity analysis is based on the assumption of maintaining as probable scenario the market rates at December 31, 2017 recorded in the Company´s assets and liabilities.

12.d) Liquidity risk 

It is the risk that the Company may not have sufficient net funds to honor its financial commitments as a result of mismatching of terms or volumes between scheduled receipts and payments.

To manage cash liquidity in domestic and foreign currency, assumptions of future disbursements and receipts are established and daily monitored by the treasury area. The payment schedules for the long-term portions of borrowings, financing and debentures are shown in note 11.

The following table shows the contractual maturities of financial liabilities, including accrued interest.

At December 31, 2016	Less than one year	From one to two years	From two to five years	Over five years	Total
Borrowings, financing and debentures	6,551,764	14,812,478	4,249,106	3,956,369	29,569,717
Trade payables	2.460,774				2,460,774
Dividends and interest on capital	510,692				510,692

IV - Fair values of assets and liabilities as compared to their carrying amounts

Financial assets and liabilities at fair value through profit or loss are recognized in current and non-current assets and liabilities, and any gains and losses are recognized as financial income or financial costs, respectively.

The amounts are recognized in the financial statements at their carrying amounts, which are substantially similar to those that would be obtained if they were traded in the market. The fair values of other long-term assets and liabilities do not differ significantly from their carrying amounts, except the amounts below.

The estimated fair values for certain consolidated long-term borrowings and financing were calculated at prevailing market rates, taking into consideration the nature, terms and risks similar to those of the recorded contracts, as below:

		12/31/2017		12/31/2016
	Carrying amount	Fair value	Carrying amount	Fair value
Perpetual bonds	3,312,503	2,602,090	3,263,536	1,702,134
Fixed rate notes	5,751,526	6,207,946	5,666,506	4,907,339

(*) Source: Bloomberg

·         Credit risks

The exposure to credit risks of financial institutions complies with the parameters established by financial policy. The Company has as practice the detailed analysis of the patrimonial and financial situation of its clients, the establishment of a credit limit and permanent monitoring of its debit balance.

With regard to financial investments, the Company only made investments in institutions with low credit risk rated by rating agencies. Since part of the funds is invested in repurchase agreements that are backed by Brazilian Government Bonds, there is also exposure to the credit risk of the Brazilian State.

Regarding the exposure to credit risk in accounts receivable and other receivables, the company has a credit risk committee, in which each new customer is analyzed individually regarding their financial condition, prior to the granting of the credit limit and payment terms and periodically revised, according to the periodicity procedures of each business area.

·         Capital Management 

The Company seeks to optimize its capital structure in order to reduce its financial costs and maximize the return to its shareholders. The table below shows the evolution of the capital structure of the Company in the last three years, with financing by equity and third-party capital.

Thousands of reais	2017	2016
Shareholder's equity (equity)	8,288,229	7,384,521
Borrowings and Financing  (Third-party capital)	29,510,844	30,441,018
Gross Debit/Shareholder's equity	3.56	4.12

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13. OTHER PAYABLES

12 Months Ended

Dec. 31, 2017

Other Payables

OTHER PAYABLES

13. OTHER PAYABLES

The group of other payables classified in current and non-current liabilities is comprised as follows:

					Consolidated
	Current			Non-current
	12/31/2017	12/31/2016	12/31/2017		12/31/2016
Payables to related parties (Note 18 b)	57,008	10,927
Derivative financial instruments (Note 12 I)		121
Dividends and interest on capital payable (Note 12 I) (1)	510,692	484,570
Advances from customers	68,521	90,720
Taxes in installments (Note 15)	21,551	24,444		79,242	83,312
Profit sharing – employees	42,699	211,791
Freight provision	81,699	57,586
Provision for industrial restructuring	1,350	13,000
Taxes payable				8,410	8,518
Other provision	152,205	23,162
Third party materials in our possession	231	288
Other payables	123,945	105,115		41,671	39,307
	1,059,901	1,021,724		129,323	131,137

(1) Dividends payable by the subsidiary CSN Mineração.

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14. INCOME TAX AND SOCIAL CONTRIBUTION

12 Months Ended

Dec. 31, 2017

Income Tax And Social Contribution

INCOME TAX AND SOCIAL CONTRIBUTION

14.a) Income tax and social contribution recognized in profit or loss:

The income tax and social contribution recognized in profit or loss for the year are as follows:

			Consolidated
	12/31/2017	12/31/2016	12/31/2015
Income tax and social contribution income (expense)
Current	(358,981)	(206,178)	(135,671)
Deferred	(50,128)	(60,368)	(2,767,545)
	(409,109)	(266,546)	(2,903,216)

The reconciliation of consolidated income tax and social contribution expenses and income and the result from applying the effective rate to profit before income tax and social contribution are as follows:

			Consolidated
	12/31/2017	12/31/2016	12/31/2015
(Loss)/Profit before income tax and social contribution	520,338	(576,951)	1,685,341
Tax rate	34%	34%	34%
Income tax and social contribution at combined statutory rate	(176,915)	196,163	(573,016)
Adjustment to reflect the effective rate:
Equity in results of affiliated companies	42,431	22,072	394,492
Profit with differentiated rates or untaxed	37,605	(287,502)	798,603
Transfer pricing adjustment	(34,746)	(63,638)	(66,447)
Tax loss carryforwards without recognizing deferred taxes	(368,612)	(821,920)	(89,978)
Limit of Indebtedness	(39,378)	(35,391)	(54,091)
Unrecorded deferred taxes on temporary differences	541,655	643,990	(1,133,091)
(Losses)/Reversal for deferred income and social contribution tax credits	(403,080)	44,691	(2,949,003)
Refis Effect and early discharge program			(2,586)
Income tax and social contribution on foreign profit	(29,964)	(35,613)	72,376
Fair value gain of 59.76% interest held in Namisa			855,551
Goodwill amortization of Metalic	31,439	31,439
Tax incentives	14,358	22,673
Reversal of deferred tax in Namisa			(107,773)
Reversal of deferred tax in Prada			(46,681)
Other permanent deductions (additions)	7,537	16,490	(1,571)
Income tax and social contribution in profit for the period	(409,109)	(266,546)	(2,903,216)
	79%	-46%	172%

Currently, there is no sufficient evidence to support the recognition of deferred tax credits. For this reason, the Company maintains the tax credits arising from tax losses and negative basis of social contribution limited to 30% of the income tax and negative basis of deferred social contribution recognized in liabilities.

14.b) Deferred income tax and social contribution:

The deferred income tax and social contribution recorded in non-current assets refer solely to tax losses and social contribution and were limited to 30% of the deferred income tax and social contribution recorded in liabilities. The remaining balance of tax losses and social contribution and the total temporary differences were written off and maintained in the Company’s tax books for future utilization and amounted as of December 31, 2017 and 2016, respectively, to R$ 3,044,137 and R$ 1,093,321 in 2017 and R$3,067,726 and R $ 1,095,848 in 2016.

	Consolidated
	Opening Balance	Movement			Opening balance	Movement			Closing Balance
	12/31/2015	Shareholders' Equity	Profit or loss	Others	12/31/2016	Shareholders ' Equity	Profit or loss	Others	12/31/2017
Deferred
Income tax losses	417,256		556,397	(2,853)	970,800		245,846	(79,412)	1,137,234
Social contribution tax losses	161,769		179,887	(1,027)	340,629		94,843	(28,588)	406,884
Temporary differences	(1,572,992)	71,769	(796,652)	9,700	(2,288,175)	26,778	(390,817)	(2,344)	(2,654,558)
- Provision for tax social security, labor, civil and environmental risks			7,615	3,398	256,936		12,963		269,899
- Provision for envieionmental liabilities	89,290		5,758		95,048		(8,197)		86,851
- Assets impairmant losses	87,152		6,756		93,908		(5,475)		88,433
- Inventory imparment losses	29,048		5,234	1,421	35,703		10,111		45,814
- (Gains )/ losses in financial instruments	(5,454)		3,154		(2,300)		1,388		(912)
- (Gains )/losses on available - for - sale financial assets	947,989	(242,060)			705,929	316,563			1,022,492
- Actuarial liability (pension and healthcare plan)	164,167	(15,387)	(14,202)		134,578	180,834	(41,065)	(1,289)	273,058
- Acrrued supplies and services	92,401		30,625	75	123,101		(55,385)		67,716
- Allowance for doubtful debts	38,614		1,751	1,643	42,008		5,208		47,216
- Goodwil on merger	9,211		(283)	(8,113)	815		(207)		608
- Unrealized ex change differences   (1)	2,427,926		(838,275)		1,589,651	56,493	(134,992)		1,511,152
- (Gain) in control loss on Transnordestina	(224,096)		131,916		(92,180)				(92,180)
- Cash flow hedge accounting	516,831	(368,360)			148,471	(13,992)			134,479
- Aquisition Fair Value SWT/CBL	(299,574)	52,506	42,717	5,350	(199,001)	(21,143)	26,833		(193,311)
- Deferred taxes non computed	(1,673,904)	527,520	(175,915)	(2,138)	(1,324,437)	(566,173)	(3,255)	(115)	(1,893,980)
- (Losses) estimated/ reversals to deferred taxes credits	(3,173,048)	114,627	44,691		(3,013,730)	82,769	(123,056)		(3,054,017)
- Business Combination	(1,058,088)		(14,736)		(1,072,824)		32,288		(1,040,536)
- Others	212,620	2,923	(33,458)	8,064	190,149	(8,573)	(107,976)	(940)	72,660
Total	(993,967)	71,769	(60,368)	5,820	(976,746)	26,778	(50,128)	(110,344)	(1,110,440)
Total Deferred Assets	78,066				70,151				63,119
Total Deferred  Liabilities	(1,072,033)				(1,046,897)				(1,173,559)
Total Deferred	(993,967)				(976,746)				(1,110,440)

 (1) The Company taxes the foreign exchange differences on a cash basis to calculate income tax and social contribution.

The Company has foreign subsidiaries in its corporate structure, for which profits are taxed at income tax in the countries where they are domiciled by lower rates than those prevailing in Brazil. From 2013 up to 2017 such foreign subsidiaries generated profits amounting to R$ 926,161. If for some reason tax authorities understand that these profits are subject to additional taxation in Brazil in respect of income tax and social contribution, which if due, would total R$ 302,482.

The Company, based on its legal counsel’s opinion, assessed the likelihood of loss in a potential claiming by tax authorities which resulted in a possible risk of loss and, therefore, no provision was recognized in the financial statements.

14.c) Impairment test - Deferred taxes

Annually, CSN performs a technical study to demonstrate if the generation of future taxable profits support the realization of tax credits.

This study is prepared at Entity level, in accordance with the Brazilian tax legislation, and is performed considering substantially the parent company’s projections since the other group companies do not have material credits for purposes of this study. The parent company engages in the following businesses:

• Steel Brazil;

• Cement.

The deferred tax assets on tax losses and temporary differences refers mainly to the following:

Nature	Description
Tax losses	In recent periods, the Company started to incur in tax losses, mostly because of high financial expenses, as substantially all our loans and financings are on this level.
Exchange difference expenses	Since 2012 the Company opted by the taxation on a cash basis. As the Company have operated without taxable profit, it would not make sense to use this deductibility year by year (accrual basis). As a result of the cash basis tax treatment, taxes are only due and expenses are only deductible at the time of debt settlement.
Losses on Usiminas shares	The losses on Usiminas shares are recognized on an accrual basis, but the taxable event will occur only at the time of divestment, expected to occur in the period projected to compensate the deferred taxes.
Other provisions	Various accounting provisions are recognized on an accrual basis, but their taxation occurs only at the time of its realization, such as provisions for contingencies, impairment losses, environmental liabilities, etc.

The study is prepared based on the Company business plan of long-term in period reasonably estimated by management and considered several scenarios which vary according to different macroeconomic and operating assumptions.

The model for projection of taxable profit considers two main indicators:

·         Pre-Tax Profit, reflecting our projected EBITDA plus depreciation, other income and expenses and financial income (expenses); and                       

·         Taxable Profit, which is our pre-tax profit plus (minus) expenses and income items that are taxable at a time different from the time obtained on an accrual basis (temporary differences).

Taxable profit is obtained considering adjustments to pre-tax profits for the following main items:

·         Foreign Exchange differences: are expected to be offset against future profits based on the original in liquidation debts owed to third parties and rescheduling of intercompany debts (to match the periods of greater profitability);

·         Losses on Usiminas: the model assumed using the tax assets at the time of sale of the preferred shares (and realization of losses), exclusively;

·         Other provisions: in view of the unpredictability of the occurrence of losses for which we have recorded provisions, we assumed an even 10% utilization per year; and

·         Tax loss: utilization is limited under Brazilian law to 30% of the taxable income in a given year. Under Brazilian law income tax losses do not expire and may be used to offset future taxable income.

In addition, a sensitivity analysis of tax credits utilization considering a change in macroeconomic assumptions, operational performance and liquidity events took place.

On the other hand, as a negative factor, CSN has experienced income tax losses in most of the last five years resulting from the deterioration of the Brazilian political and macroeconomic environment, as well as due to the growth of financial leverage, which has unbalanced the relationship between operating and financial results.

In summary, the main positive and negative evidences we considered in making our projections were:

i.              Positive aspects: Operating profit, non-expiration on tax losses benefit and extinguishment of the financial expenses arising from the elimination pre-existing relationship between Namisa and CSN, and dividends to be received from CSN Mineração.

ii.             Negative aspects: history of tax losses, substantial generation of cash used for payment of debts and increase in iron ore costs since, from the business combination, the Company started purchasing iron ore at market price from CSN Mineração and, pursuant to the Brazilian legislation, the utilization of the tax loss is limited to 30% of the taxable profit in the year.

The existence of tax losses generated in the last years is a material negative evidence for being objectively verifiable, and, consequently, more weight is given to this evidence than to others which may have subjectivity features, according to the interpretation of IAS 12 standard.

Therefore, one considers that there are not sufficiently strong evidences that support the recording of the tax credits, limiting their recognition to 30% of the deferred tax liabilities.

14.d) Income tax and social contribution recognized in shareholders' equity:

The income tax and social contribution recognized directly in shareholders' equity are as follows:

	Consolidated
	12/31/2017	12/31/2016
Income tax and social contribution
Actuarial gains on defined benefit pension plan	171,473	30,234
Estimated losses for deferred income and social contribution tax credits - actuarial gains	(175,649)	(33,400)
Changes in the fair value on available-for-sale financial assets	(525,107)	(33,796)
Actuarial gains and assets available for sale by incorporation	525,107	33,796
Exchange differences on translating foreign operations	(369,017)	(425,510)
Cash flow hedge accounting	134,478	109,813
Estimated losses for deferred income and social contribution  tax credits - cash flow hedge	(134,478)	(109,813)
	(373,193)	(428,676)

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15. TAX INSTALLMENTS PROGRAMS

12 Months Ended

Dec. 31, 2017

Tax Installments Programs

TAX INSTALLMENTS PROGRAMS

15. Tax installments programs

The position of the REFIS debts (refinancing program) and other tax installment payment plans, were recorded in current and non-current liabilities, as stated in the table of Note 13, are as follows:

				Consolidated
	Current		Non-current
	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Federal REFIS Law 11.941/09	12,552	11,956	20,083	19,779
Federal REFIS Law 12.865/13	5,984	5,572	56,381	57,905
Other refinancing program	3,015	6,916	2,778	5,628
	21,551	24,444	79,242	83,312

REFIS debts refer to tax refinance programs launched by the Brazilian Federal Government to allow tax owners to pay their fiscal debts in installments. Usually, the adhesion to those programs by the companies allow them to benefit from relief of interest and penalties.

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16. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS

12 Months Ended

Dec. 31, 2017

Provision For Tax Social Security Labor Civil And Environmental Risks And Judicial Deposits

PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS

Claims of different nature are being challenged at the appropriate courts. Details of the accrued amounts and related judicial deposits are as follows:

				Consolidated
	Accrued liabilities		Judicial deposits
	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Tax	113,451	119,523	52,542	62,035
Social security	74,522	62,574	50,098	48,614
Labor	451,173	485,422	202,104	186,823
Civil	148,212	137,857	22,752	23,179
Environmental	37,733	7,716	1,826	2,220
Deposit of a guarantee			10,029	8,387
	825,091	813,092	339,351	331,258

Classification:
Current	105,958	108,607
Non- current	719,133	704,485	339,351	331,258
	825,091	813,092	339,351	331,258

The changes in the provision for tax, social security, labor, civil and environmental risks in the year ended December 31, 2017 were as follows:

					Consolidated
					Current + Non- current
Nature	12/31/2016	Additions	Accrued charges	Net utilization of reversal	12/31/2017
Tax	119,523	24,805	6,325	(37,202)	113,451
Social security	62,574	10,333	3,121	(1,506)	74,522
Labor	485,422	42,400	33,330	(109,979)	451,173
Civil	137,857	3,496	11,681	(4,822)	148,212
Environmental	7,716	33,549	221	(3,753)	37,733
	813,092	114,583	54,678	(157,262)	825,091

The provision for tax, social security, labor, civil and environmental liabilities was estimated by management and is mainly based on the legal counsel’s assessment and only proceedings for which the risk is classified as probable loss are accrued. Additionally, this provision includes tax liabilities resulting from lawsuits filed by the Company, subject to SELIC (Central Bank’s policy rate).

Tax lawsuits

The main tax lawsuits assessed by the outside legal counsel as probable losses to which CSN or its subsidiaries are parties are as follows: (i) Municipal tax assessments (ISS) incident in lease contracts; (ii) ICMS Assessment Notice for the alleged nonpayment of this tax on product imports; (iii) Tax Forfeiture to collect ICMS reported but not paid; (iv) collection of income tax and social contribution for the offset of nonexistent tax credits.

Labor lawsuits

As of December 31, 2017, the Group is a defendant in 8,778 labor lawsuits. Most of the claims relate to subsidiary and/or joint liability, salary equalization, health hazard premiums and hazardous duty premiums, overtime pay, difference in the 40% fine for the severance pay fund (FGTS) related to period prior to retirement and as a result of federal government economic plans, health care plan, indemnity claims resulting from alleged occupational diseases or on-the-job accidents, breaks between working hours, and differences in profit sharing from 1997 to 1999 and from 2000 to 2003.

During the year ended December 31, 2017 there were addition or write-off movements in labor lawsuits, due to court orders issued to terminate lawsuits and the constant revision of the Company’s accounting estimates related to the provision for contingencies that take into consideration the different nature of the claims made, as required by the Company’s accounting policies.

Civil lawsuits

Among the civil lawsuits in which the Company is a defendant are claims for compensation. Generally these lawsuits result from on-the-job accidents, occupational diseases and contractual litigation related to the industrial activities of the Group, real estate actions, healthcare plan, and reimbursement of costs incurred in labor courts.

Environmental lawsuits

The environmental administrative/judicial proceedings filed against the Company include mainly administrative proceedings for alleged environmental irregularities and the regularization of environmental permits; at the judicial level, the Company is a party to actions collecting the fines imposed for such alleged environmental irregularities and public civil actions claiming regularization coupled with compensation, in most cases claiming environmental recovery. In general these proceedings arise from alleged damages to the environment related to the Company’s industrial activities.

The environmental processes present high complexity for estimating the amount at risk, should be taken into consideration, among various aspects, procedural development, the extent of damage and the projection of repairing costs.

There are other environmental processes for which it is not yet possible to assess the risk and contingency value due to the aforementioned complexity estimation, the peculiarities of the matters involving them and also their procedural steps. The main processes of environmental nature are listed below:

·       In 2010 we signed a Term for Undertaking (Termos de Ajustamento de Conduta ), or (“TAC”) with the State of Rio de Janeiro to study and make investments to update environmental control equipment at the steel plant UPV. In the TAC it was initially estimated investments in the amount of R$216 million, increased to R$260 million after the cost of projects was determined more precisely. In 2013 we signed an addendum to the TAC in order to enlighten certain issues, as well as to include further obligations established by the State Environmental Institute (“Instituto Estadual do Ambiente” or “INEA”), which resulted in additional investments of R$165 million, already made. The TAC signed in 2010 expired in 2015 and CSN, the State of Rio de Janeiro and INEA signed a new TAC in April 2016, which determined new investments amounting to R$178.5 million to adopt measures of adequacy at UPV, the payment of environmental fines of R$16 million and the amount of R$6.1 million as a compensatory measure to be applied in environmental programs in Volta Redonda. UPV was authorized to fully operate during the period this new TAC is in force by the protocol nº IN034283 (“Autorização Ambiental de Funcionamento” or “AAF”).

Within the context of the TAC signed in April 2016, upon the expiration of the environmental authorization, a renewal of the authorization was issued in December 2017 by the Deliberation CECA/CFL nº 6.141 under nº IN042958, allowing the full operation of UPV for 180 days which will expire on June 20, 2018. During this period we will continue seeking a final consensual solution to the environmental issues of UPV under discussion with the environmental institutions of the State of Rio de Janeiro.

·       In July 2012, the Public Ministry of the State of Rio de Janeiro initiated a public civil action against us to require us to (i) remove wastings left in industrial landfill areas in the city of Volta Redonda and (ii) transfer 750 residences of the Volta Grande IV condominium, also in the city of Volta Redonda. These requirements were denied by the Court, which determined the presentation of a schedule to investigate the area and, if necessary, to remediate the potential issues raised by the Public Ministry. The aforementioned schedule was presented and all the surveys performed during the investigation including the risk assessment and intervention plan were concluded at the end of April 2014. Also, we were notified as to indemnification actions initiated by owners of the residential condominium mentioned above to be reimbursed for material and moral damages.

·       In August 2013, the Public Federal Ministry initiated a similar action as the one described above. Up to date we discuss the proper forum to judge both public civil actions.

·       With regards to other supposedly contaminated areas in Volta Redonda, the Public Ministry initiated three public civil actions claiming for environmental remediation and indemnification related to certain áreas denominated Marcia I, II, III and IV, Wandir I and II and Reciclam. These claims are at initial stage and we are currently performing environmental studies that will determine the extent of possible environmental damages related to soil contamination, as well as the action plan to fulfill with the legislation in force. As soon as the studies are concluded, they will be presented and added to the pleadings.

·       In 2015, the Public Federal Ministry initiated a public civil action against us claiming for the adequacy and regularization for the emission of particles from the UPV and the stoppage of its operations. In accordance with CONAMA Resolution  n.º 436/2011, we have to adjust the emission of particles to match to the current legal standards required by December 2018. We are fully compliant with the environmental rules in force.

·       In 2016, we were notified as to a new public civil action jointly initiated by the Public Federal Ministry and the Public Ministry of the State of Rio de Janeiro in relation to a supposedly irregular waste deposit in the landfill area named "Aterro Panco". The claims are for the recovery of degraded areas, compensation for damages to fauna and flora and to human health, as well as indemnification for material and moral damages caused to the environment. Due to the nature of this action and to the current stage of the pleading, this action is still considered as inestimable.

·       In 2004, the Public Federal Ministry initiated a public civil action against us for a supposedly environmental contamination and pollution of the Paraíba do Sul river caused by our industrial activities of UPV. The Court of the State of Rio de Janeiro maintained the condemnation previously given and reinforced the obligation of the Company to compensate eventual environmental damages. We appealed to the Superior Court of Justice which accepted the appeal and determined the pleading to return to the previous stage and nullified all the decisions previously given. A technical survey was also determined to be performed in the area.

·       A civil investigation is ongoing to assess (i) the environmental requisites to our project in the city of Arcos (cement plant); (ii) monitoring and mitigation of the environmental impacts of our productive activities; (iii) conformity of the conditions our our environmental licenses, including the creation of a museum in Corumbá ecological station and the establishment of a Private Reserve of the Natural Heritage; and (iv) measures for preservation of the cultural heritage and adoption of compensatory measures. In February 2011 a Term of Undertaking was signed (“TAC”) to assure the fulfillment of the obligations raised by the Public Ministry. The Ministerial Board has issued a clearance certificate to the major part of the TAC, except for three pending items that still remain open.

·       In 2009 and 2010, we signed Judicial Agreements (“TAJ”) with the Public Federal Ministry to recover environmental liabilities caused by our coal mining activities in the Southeast of Santa Catarina until the 90’s. The environmental liabilities reached by the TAJ include the restoration of certain degraded areas. We are currently under negotiation of a new execution schedule.

·       In relation to the mining activities matters, due to the accident involving a Brazilian mining company in November 2015, the State of Minas Gerais initiated several civil investigations based on the inventory of tailing dams of the State released in 2014. Those procedures seek to find structures not assured by external auditors due to technical unstability or the technical stability was not assured due to the lack of documentation or technical data.

·       In March 2016 we were notified of a public civil action initiated against the State of Minas Gerais and the State Environmental Foundation (“FEAM”) questioning the stability of the structure of our tailing dam known as “BAIA 4” – a small structure built within the industrial area and used to collect particles generated during the process of ore filtration. That pleading was filed before the defense takes place due to out-of-date information. CSN was able to prove that BAIA 4 structure was steady which led to the filing of the action. In August 2016, we were notified of a new public civil action questioning the stability of the structure of our tailing dam known as “Dique do Engenho” (Engenho dam). We presented the documentation to the State authorities to prove the stability and safety of the Engenho dam “Dique do Engenho”. We expect this action to be also filed shortly.

·         Other administrative and judicial proceedings

The table below shows a summary of the carrying amounts of the main legal matters with possible risk of loss on December 31, 2017and 2016.

		Consolidated
	12/31/2017	12/31/2016
Income tax / Social contribution - Assessment Notice and imposition of fine (AIIM) - Capital gain for an alleged sale of the shares of its subsidiary NAMISA (1)  .	11,073,961	8,415,142
Income tax / Social contribution - Assessment Notice and imposition of fine (AIIM) - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by Namisa	2,623,179	2,457,855
Assessment Notice and Imposition of fine (AIIM) - Income tax/ Social contribution - gloss of interest on prepayment arising from  supply contracts of iron ore and port services	2,500,606	2,327,499
Notices of violation and imposition of fine - Income taxes and social contribution due to profits from foreign subsidiaries (years 2008,2010 and 2011)	1,858,640	1,644,898
Tax foreclosures - ICMS - Electricity credits	920,306	838,192
Installments MP 470 - alleged insufficiency of tax losses	704,739	652,553
Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS e IPI	1,685,648	1,505,079
Disallowance of the ICMS credits - Transfer of iron ore	499,006	570,997
ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation	275,233	279,511
Disallowance of the tax losses arising on adjustments to the SAPLI	491,862	455,214
Assessment Notice - ICMS - shipping and return merchandise for Industrialization	816,199	749,492
Assessment Notice- Income tax- Capital Gain of CFM vendors located outside	203,185	185,249
CFEM - Divergence on the understanding between CSN and DNPM on the calculation basis	290,249	348,512
Other tax (federal, state, and municipal) lawsuits	3,065,131	2,727,258
Assessment Notice  - ICMS - Questions about sales to incentive zone	170,330
Social security lawsuits	278,600	263,951
Law suit applied by Brazilian antitrust authorities (CADE)	98,189	96,316
Other civil lawsuits	1,111,944	814,440
Labor and social security lawsuits	1,569,712	1,138,155
Environmental lawsuits - ACP TAC/PAC - Compliance with environmental obligations (2)  .	216,878	203,486
Tax foreclosures  - Fine of Volta Grande  IV (3)	67,620	58,045
Others Enviromental lawsuits	117,858	113,741
	30,639,075	25,845,585

 1.    In February 2017, we were notified of the judgment of the Amendment of Judgment filed due the CARF’s decision on case, in which the Federal Revenue Service of Brazil challenges the capital gain on the alleged sale of 40% of NAMISA (currently CSN Mineração S.A.). The CARF, in short, agreed with the infringement notice. The Company, however, is taking of the lawfulness of the operation and, therefore, is evaluating the appropriate legal and procedural measures to reverse the decision. Currently we have been discussing the subject in several processes and there is a fiscal execution by which a portion of our assets, such as buildings, equipment, land, vehicles and fixtures and furniture, has been given as a guarantee. This processual scenario does not change our assessment and, accordingly, we maintain that contingency as possible.

2.      In 1995, the Municipality of Volta Redonda filed a civil action requesting compliance with the requirements of the Environmental Compensation Program (PAC) agreed between the municipality and CSN. In May 2008, despite the fact that CSN had demonstrated its compliance with the TAC / 1995, involving an approximate amount of R$ 16 million, the Municipality of Volta Redonda disagreed and requested payment of the obligations considered by the Municipality as outstanding. After the initial discussions, the Municipality of Volta Redonda filed a petition to execute the allegedly unfulfilled items, in the original amount of R$ 172 million, which was duly contested by the Company. The First Instance Judge appointed a team of experts to determine the outstanding obligations and the respective value involved. Currently, the process is suspended, at the request of both parties, with a view to negotiations for a possible agreement.

3.      On April 8, 2013, INEA imposed on CSN a fine of R$ 35 million in respect of the aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the civil suit filed in July 2012. In connection with the application of this fine, an annulment action was distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, seeking the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action in order to enforce the amount of the fine imposed. The aforementioned Tax Enforcement action was distributed in May 2014 to the 4th Volta Redonda Active Debt Registry in the State of Rio de Janeiro. Currently, said enforcement action is suspended until the judgment of the annulment action, in order to avoid conflicting decisions.

The assessments made by the legal counsel define these administrative and judicial proceedings as entailing risk of possible loss and, therefore, no provision was recorded in conformity with Management’s judgment and accounting practices adopted in Brazil.

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17. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2017

Provision For Environmental Liabilities And Asset Retirement Obligations

PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS

17. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS

The balance of the provision for environmental liabilities and asset retirement obligation - ARO are as follows:

		Consolidated
	12/31/2017	12/31/2016
Environmental liabilities	255,517	273,475
Asset retirement obligations	81,496	73,589
	337,013	347,064

17. a) Environmental liabilities

As of December 31, 2017, there is a provision recognized for expenditures relating to environmental investigation and recovery services for potentially contaminated areas surrounding establishments in the States of Rio de Janeiro, Minas Gerais and Santa Catarina. Estimated expenditures will be reviewed periodically and the amounts already recognized will be adjusted whenever necessary. These are Management’s best estimates based on the environmental remediation studies and projects. This provision is recognized as other operating expenses.

The provision is measured at the present value of the expenditures required to settle the obligation, using a pretax rate that reflects current market assessments of the time value of money and the specific risks of the obligation. The increase in the obligation due to passage of time is recognized as other operating expenses.

The discount rate used to calculate the provision to present value through December 31, 2017 was 10.54% in real terms. The liability recognized is periodically updated based on the general market price index (IGP-M) for the period.

Some contingent environmental liabilities are monitored by environmental department were not recorded in provisions due to its characteristics, they do not meet the recognition criteria present in IAS 37.

17. b) Asset retirement obligations

Asset retirement obligations refer to estimated costs for decommissioning, retirement or restoration of areas upon the termination of activities related to mining resources. The initial measurement is recognized as a liability discounted to present value and subsequently through increase in expenses over time.  The asset retirement cost equivalent to the initial liability is capitalized as part of the carrying amount of the asset, being depreciated over the useful life of the asset.

In 2015, the Company completed a new certification of iron mineral reserves in the Casa de Pedra and Engenho mines. This certification, prepared by a specialized company, has certified reserves of 3,021 million tons of iron ore.

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18. RELATED-PARTY BALANCES AND TRANSACTIONS

12 Months Ended

Dec. 31, 2017

Related-party Balances And Transactions

RELATED-PARTY BALANCES AND TRANSACTIONS

18.a) Transactions with Holding Companies

Vicunha Siderurgia S.A. is the Company’s main shareholder, with 49.21% of the voting shares.

Also integrating the Company’s control block are Rio Iaco Participações S.A., CFL Participações S.A. and Vicunha Têxtil, which hold interest in CSN’s voting capital of 4.29%, 0.29% and 0.36%, respectively.

Vicunha steel’s corporate structure is as follows:

Vicunha Steel S.A. – holds 67.92% of Vicunha Aços S.A.

CFL Participações S.A. – holds 12.82% of National Steel S.A. and holds 40% of Vicunha Steel S.A.

Rio Purus Participações S.A. – holds 19.24% of Vicunha Aços S.A. and holds 60% of Vicunha Steel S.A.

18.b) Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties

·       By transaction – Assets and Liabilities

	Consolidated
		Current		Non-Current		Total
		12/31/2017	12/31/2016	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Assets
Trade receivables (note 5)		115,388	129,837			115,388	129,837
Dividends receivable (note 5)		41,528	37,679			41,528	37,679
Actuarial asset (note 7)				111,281	119,854	111,281	119,854
Short-term investments/Investments		53	315,319			53	315,319
Loans (note 7)		2,441		554,694	479,960	557,135	479,960
Other receivables (note 7)		3,577	5,768	30,770	32,020	34,347	37,788
		162,987	488,603	696,745	631,834	859,732	1,120,437
Liabilities
Other payables (Note 13)
Accounts payable		57,008	10,927			57,008	10,927
Trade payables		81,063	50,623			81,063	50,623
Actuarial liabilities				41,937	28,004	41,937	28,004
		138,071	61,550	41,937	28,004	180,008	89,554

By transaction – Statement of Income

	12/31/2017	12/31/2016	12/31/2015
Revenues
Sales	880,145	878,992	725,285
Interest (Note 24)	61,549	60,964	65,084
Expenses
Purchases	(1,176,930)	(1,099,851)	(1,103,428)
Interest (Note 24)		(3,185)	(1,333)
Foreign exchange and monetary variation, net		(18,398)
	(235,236)	(181,478)	(314,392)

·       By company - Assets and Liabilities

						Consolidated
		Assets			Liabilities
	Current	Non-current	Total	Current	Non-current	Total
Joint-venture and Joint-operation
Itá Energética S.A.				2,741		2,741
MRS Logística S.A.	40,828		40,828	100,749		100,749
CBSI - Companhia Brasileira de Serviços e	714		714	23,874		23,874
Infraestrutura
Transnordestina Logística S.A (1)	248	554,694	554,942	3,245		3,245
	41,790	554,694	596,484	130,609		130,609
Other related parties
CBS Previdência		111,281	111,281		41,937	41,937
Fundação CSN	1,829		1,829	518		518
Banco Fibra (2)	53		53
Usiminas				410		410
Panatlântica (3)	109,565	1,750	111,315	6,534		6,534
Ibis Participações e Serviços
Partifib Projetos Imobiliários	100		100
Vicunha Imóveis Ltda.
Vicunha Serviços Ltda.
	111,547	113,031	224,578	7,462	41,937	49,399
Associates
Arvedi Metalfer do Brasil S.A.	9,650	29,020	38,670
Total at 12/31/2017	162,987	696,745	859,732	138,071	41,937	180,008
Total at 12/31/2016	488,603	631,834	1,120,437	61,550	28,004	89,554

·       By company - Statement of Income

				12/31/2017					12/31/2016				12/31/2015
	Sales	Purchases	Finance income and costs, net	Total	Sales	Purchases	Finance income and costs, net	Foreign exchange and monetary variation, net	Total	Sales	Purchases	Finance income and costs, net	Total
Joint ventures and Joint Operation
Nacional Minérios S,A, (2)										113,563	(198,378)	6,424	(78,391)
Itá Energética S.A		(32,275)		(32,275)		(32,363)			(32,363)
MRS Logística S,A,		(934,279)		(934,279)		(903,030)			(903,030)		(725,710)		(725,710)
CBSI - Companhia Brasileira de Serviços e Infraestrutura	55	(150,758)		(150,703)	18	(138,374)			(138,356)	48	(166,945)		(166,897)
Transnordestina Logística S,A (3)	2,549	(7,916)	53,261	47,894	5,039	(8,505)	55,758		52,292			23,380	23,380
	2,604	(1,125,228)	53,261	(1,069,363)	5,057	(1,082,272)	55,758		(1,021,457)	113,611	(1,091,033)	29,804	(947,618)
Other related parties
CBS Previdência
Fundação CSN	13	(1,118)		(1,105)		(4,045)			(4,045)		(2,152)	3	(2,149)
Banco Fibra (2)			6,290	6,290			(844)	(18,398)	(19,242)			15,592	15,592
Usiminas		(427)		(427)	17,027	(6,026)			11,001	12,289	(1,230)		11,059
Panatlântica (3)	872,047	(43,949)		828,098	779,503				779,503	597,998			597,998
Ibis Participações e Serviços		(5,915)		(5,915)	47	(7,370)			(7,323)		(4,324)		(4,324)
Taquari Participações S,A											(130)		(130)
Partfib Projetos Imobiliários	2,821			2,821	3,082				3,082
Vicunha Imóveis Ltda.		(232)		(232)
Vicunha Serviços Ltda.		(61)		(61)
	874,881	(51,702)	6,290	829,469	799,659	(17,441)	(844)	(18,398)	762,976	610,287	(7,836)	15,595	618,046
Associates
Arvedi Metalfer do Brasil S,A,	2,660		1,998	4,658	31,026		2,995		34,021	1,387		2,465	3,852
Discontinued Operation
Cia Metalic Nordeste					43,250	(138)	(130)		42,982	61,684	(951)		60,733
Total	880,145	(1,176,930)	61,549	(235,236)	878,992	(1,099,851)	57,779	(18,398)	(181,478)	786,969	(1,099,820)	47,864	(264,987)

(1) Transnordestina Logística S.A: Assets: Refers mainly to contracts in R$: interest equivalent to 102.0% and 115.0% of CDI. On December 31, 2017, the borrowings carrying amounts totaled to R$507,009 (R$459,762 as of December 31, 2016).
(2) Banco Fibra S.A: Assets: Refers to financial investments in CDB and Time deposit – at market rate
(3) Panatlantica:Receivables from the sale of steel products.

18.c) Other unconsolidated related parties

·       CBS Previdência

The Company is the main sponsor of this non-profit entity established in July 1960, primarily engaged in the payment of benefits that supplement the official government Social Security benefits to participants. In its capacity as sponsor, CSN carries out transactions involving the payment of contributions and recognition of actuarial liabilities calculated in defined benefit plans.

·       Fundação CSN

The Company develops socially responsible policies concentrated today in Fundação CSN, of which it is the founding. The transactions between the parties relate to the operating and financial support for Fundação CSN to carry out the social projects undertaken mainly in the locations where the Company operates.

·       Ibis Participações e Serviços Ltda, Ibis Agraria e Partifib Projetos Imobiliários

These companies are under the control of a member of the Company's management.

·       Banco Fibra

Banco Fibra is under the control structure of Vicunha Aços S.A., a direct owner of the Company and the financial transactions carried out with this bank are limited to movements in checking accounts and financial investments in fixed-income securities.

·       Taquari Asset

Belonging to the Vicunha Group, Taquari Asset is the company responsible for managing the third-party funds, funds and / or portfolios.

·       Companies under control of one of the Company’s Board member

·         Ibis Participações e Serviços Ltd.

·         Ibis Agrária Ltd.

·         Partifib Projetos Imobiliários Ltd.

·         Vicunha Imóveis Ltd.

·         Vicunha Serviços Ltd.

18.d) Key management personnel

The key management personnel with authority and responsibility for planning, directing and controlling the Company’s activities, include the members of the Board of Directors and statutory directors. The following is information on the compensation of such personnel and the related balances as of December 31, 2017.

	12/31/2017	12/31/2016	12/31/2015
	Statement of Income
Short-term benefits for employees and officers	39,721	71,852	47,578
Post-employment benefits	110	306	311
	39,831	72,158	47,889

The remuneration of key management personnel in 2016 includes payments of contracts with executives that were linked to parameters that were achieved mainly in the first quarter 2016.

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19. SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2017

Shareholders Equity

SHAREHOLDERS' EQUITY

19.a) Paid-in capital

Fully subscribed and paid-in capital as of December 31, 2017 and December 31, 2016 is R$4,540,000 comprising 1,387,524,047 book-entry common shares without par value. Each common share entitles its holder to one vote in Shareholders’ Meetings.

19.b) Authorized capital

The Company’s bylaws in effect as of December 31, 2017 determine that the capital can be raised to up to 2,400,000,000 shares by decision of the Board of Directors.

19.c) Legal reserve

This reserve is recognized at the rate of 5% of the profit for each period, as provided for by Article 193 of Law 6.404/76, up to the ceiling of 20% of share capital.  

19.d) Ownership structure

As of December 31, 2017, the Company’s ownership structure was as follows:

			12/31/2017			12/31/2016
	Number of common shares	% of total shares	% of voting capital	Number of common shares	% of total shares	% of voting capital
Vicunha Aços S.A.	682,855,454	49.21%	50.32%	682,855,454	49.21%	50.32%
Rio Iaco Participações S.A. (*)	58,193,503	4.19%	4.29%	58,193,503	4.19%	4.29%
CFL Participações S.A. (*)	3,977,536	0.29%	0.29%	3,977,536	0.29%	0.29%
Vicunha Textil S.A. (*)	4,927,000	0.36%	0.36%	4,927,000	0.36%	0.36%
Caixa Beneficente dos Empregados da CSN - CBS	20,143,031	1.45%	1.48%	20,143,031	1.45%	1.48%
BNDES Participações S.A. – BNDESPAR	8,794,890	0.63%	0.65%	8,794,890	0.63%	0.65%
NYSE (ADRs)	303,590,364	21.88%	22.37%	323,546,664	23.32%	23.84%
BM&FBovespa	274,651,269	19.79%	20.24%	254,694,969	18.36%	18.77%
Total shares outstanding	1,357,133,047	97.81%	100.00%	1,357,133,047	97.81%	100.00%
Treasury shares	30,391,000	2.19%		30,391,000	2.19%
Total shares	1,387,524,047	100.00%		1,387,524,047	100.00%

(*) Controlling group companies.

19.e) Treasury shares

The Board of Directors authorized various share buyback programs in order to hold shares in treasury for subsequent disposal and/or cancelation with a view to maximizing the generation of value to the shareholder through an efficient capital structure management, as shown in the table below:

Program	Board’s Authorization	Authorized quantity	Program period	Average buyback price	Minimum and maximum buyback price	Number bought back	Share cancelation		Balance in treasury
1º	3/13/2014	70,205,661	From 3/14/2014 to 4/14/2014	R$ 9.34	R$ 9.22 and R$ 9.45	2,350,000			2,350,000
2º	4/15/2014	67,855,661	From 4/16/2014 to 5/23/2014	R$ 8.97	R$ 8.70 and R$ 9.48	9,529,500			11,879,500
3º	5/23/2014	58,326,161	From 5/26/2014 to 6/25/2014	R$ 9.21	R$ 8.61 e R$ 9.72	31,544,500			43,424,000
4º	6/26/2014	26,781,661	From 6/26/2014 to 7/17/2014	R$ 10.42	R$ 9.33 and R$ 11.54	26,781,661			70,205,661
	7/18/2014			Not applicable	Not applicable		60,000,000	(1)	10,205,661
5º	7/18/2014	64,205,661	From 7/18/2014 to 8/18/2014	R$ 11.40	R$ 11.40	240,400			10,446,061
	8/19/2014			Not applicable	Not applicable		10,446,061	(1)
6º	8/19/2014	63,161,055	From 8/19/2014 to 9/25/2014	R$ 9.82	R$ 9.47 and R$ 10.07	6,791,300			6,791,300
7º	9/29/2014	56,369,755	From 9/29/2014 to 2/29/2014	R$ 7.49	R$ 4.48 and R$ 9.16	21,758,600			28,549,900
8º	12/30/2014	34,611,155	From 12/31/2014 to 3/31/2015	R$ 5.10	R$ 4.90 and R$ 5.39	1,841,100			30,391,000
9º (*)	03/31/2015	32,770,055	From 4/01/2015 to 6/30/2015

(*) There were no share buyback in this program.

(1)    In 2014 the Board of Directors approved the cancelation of 70,446,061 treasury shares without change in the Company’s share capital.

As of December 31, 2017, the position of the treasury shares was as follows:

Quantity purchased (in units)	Amount	Share price			Share
	paid for				market price
	the shares	Minimum	Maximum	Average	as of 12/31/2017(*)
30,391,000	R$ 238,976	R$       4.48	R$ 10.07	R$           7.86	R$ 253,765

(*) Using the last share average quotation on B3 S.A. - Brasil, Bolsa, Balcão (former BM&FBovespa) as of December 31, 2017 of R$8.35 per share.

19.f) Policy on investments and payment of interest on capital and dividends  

At a meeting held on December 11, 2000, the Board of Directors decided to adopt a profit distribution policy which, after compliance with the provisions in Law 6.404/76, as amended by Law 9.457/97, will entail the allocation of all the profit to the Company’s shareholders, provided that the following priorities are observed, irrespective of their order: (i) carrying out the business strategy; (ii) fulfilling its obligations; (iii) making the required investments; and (iv) maintaining a healthy financial situation of the Company.

19.g) Earnings/(loss) per share:

Basic earnings per share were calculated based on the profit/(loss) attributable to the owners of CSN divided by the weighted average number of common shares outstanding during the year, excluding the common shares purchased and held as treasury shares, as follows:

	12/31/2017	12/31/2016	12/31/2015
	Common Shares
(Loss) profit for the year
Continued operations	10,272	(925,186)	(1,216,033)
Discontinued operations	-	(9,561)	1,911
	10,272	(934,747)	(1,214,122)
Weighted average number of shares	1,357,133,047	1,357,133,047	1,357,150,010
Basic and diluted EPS
Continued operations	0.00757	(0.68172)	(0.89602)
Discontinued operations	-	(0.00704)	0.00141
	0.00757	(0.68876)	(0.89461)

The Company does not hold potential dilutable outstanding ordinary shares that could result in dilution of earnings per share.

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20. PAYMENT TO SHAREHOLDERS

12 Months Ended

Dec. 31, 2017

Payment To Shareholders

PAYMENT TO SHAREHOLDERS

20. PAYMENT TO SHAREHOLDERS

The Company's Bylaws provide the distribution of 25% minimum dividends of adjusted net income under the law, to the shareholders. The dividends are calculated in accordance with the Company’s Bylaws and in accordance with the Brazilian Corporate Law.

On March 11,2015, the Board of Directors approved the proposal distribution of dividends the profit reserve account (statutory reserve of working capital), in the amount of R$275,000, corresponding to R$ 0.202633043 per share. Dividends were paid as of March 19, 2015, without monetary update.

The following table shows the history of deliberate and paid dividends:

Approval		Payment
Approval Year	Dividends	Payment Year	Dividends
2014	700,000	2014	424,939
	-	2015	274,917
2015	275,000	2015	274,918
2016 (*)		2016	53
2017 (*)		2017
Total approved	975,000	Total paid	974,827

(*) There is no dividend deliberation on the year of 2016 and 2017.

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21. NET SALES AND SERVICES REVENUE

12 Months Ended

Dec. 31, 2017

Net Sales And Services Revenue

NET SALES AND SERVICES REVENUE

21. NET SALES AND SERVICES REVENUE

Net sales and services revenue is comprised as follows:

	12/31/2017	12/31/2016	12/31/2015
Gross revenue
Domestic market	11,487,011	10,206,195	10,212,748
Foreign market	9,980,572	9,571,630	7,725,818
	21,467,583	19,777,825	17,938,566
Deductions
Sales returns and discounts	(262,989)	(190,415)	(297,957)
Taxes on sales	(2,679,993)	(2,438,461)	(2,378,912)
	(2,942,982)	(2,628,876)	(2,676,869)
Net revenue	18,524,601	17,148,949	15,261,697

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22. EXPENSES BY NATURE

12 Months Ended

Dec. 31, 2017

Expenses By Nature

EXPENSES BY NATURE

22 . EXPENSES BY NATURE

	12/31/2017	12/31/2016	12/31/2015
Raw materials and inputs	(5,404,801)	(4,518,718)	(4,858,070)
Labor cost	(2,400,579)	(2,482,111)	(1,887,735)
Supplies	(1,451,437)	(1,384,437)	(1,095,576)
Maintenance cost (services and materials)	(1,145,974)	(1,203,294)	(1,069,404)
Outsourcing services	(3,424,439)	(3,492,520)	(3,284,238)
Depreciation, amortization and depletion (Note 11 a)	(1,408,765)	(1,278,816)	(1,130,869)
Other	(591,094)	(495,274)	(314,730)
	(15,827,089)	(14,855,170)	(13,640,622)
Classified as:
Cost of sales and services	(13,596,141)	(12,640,042)	(11,740,101)
Selling expenses	(1,815,107)	(1,696,896)	(1,430,189)
General and administrative expenses	(415,841)	(518,232)	(470,332)
	(15,827,089)	(14,855,170)	(13,640,622)

The depreciation, amortization and depletion additions for the year were distributed as follows:

		Consolidated
	12/31/2017	12/31/2016
Production costs	1,376,862	1,241,425
Sales expenses	8,851	9,163
General and Administrative Expenses	23,052	28,228
	1,408,765	1,278,816
Other operating expenses (*)	44,570	43,681
	1,453,335	1,322,497

(*) Refers mainly to the amortization of intangible assets, see note 23.

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23. OTHER OPERATING INCOME (EXPENSES)

12 Months Ended

Dec. 31, 2017

Other Operating Income Expenses

OTHER OPERATING INCOME (EXPENSES)

23 . OTHER OPERATING INCOME (EXPENSES)

	12/31/2017	12/31/2016	12/31/2015
Other operating income
Indemnities/gains on lawsuits	6,106	26,871	5,189
Rentals and leases	1,841	1,483	1,150
Reversal of provisions			5,020
Dividends received	3,248	567	5,794
Extemporaneous PIS/COFINS credits		203,504	234,287
Contractual fines	2,970	2,501	2,200
Gain on business combination		66,496	3,297,499
Actuarial pension plan	36,952	48,790	8,702
Gain on sales of assets held for sale		252,023
Monetary adjustment related to the Eletrobrás compulsory loan (*)	755,151
Other revenues	18,018	61,274	50,506
	824,286	663,509	3,610,347
Other operating expenses
Taxes and fees	(136,348)	(88,249)	(13,999)
Write-off / (Provision) of judicial deposits	(38,258)	(64,886)	(24,145)
Expenses with environmental liabilities, net	(7,156)	(5,023)	(41,697)
Expenses from tax, social security, labor, civil and environmental law suits	(95,744)	(151,534)	(273,890)
Contractual fines		(16,624)	(309)
Depreciation of unused equipment and amortization of intangible assets (Note 22)	(44,570)	(43,681)	(41,068)
Write off of PP&E and Intangible assets (Note 9 and 10)	(28,127)	(88,339)	(6,466)
Losses /reversals estimated in inventories	(12,903)	(17,236)	1,154
Losses on spare parts	(2,872)	(12,080)	(55,790)
Studies and project engineering expenses	(32,956)	(31,156)	(38,138)
Research and development expenses	(3,944)	(2,269)	(3,363)
Advisory expenses	(3,419)	(20,865)	(15,888)
Healthcare plan expenses (Note 28 f)	(97,837)	(80,489)	(56,838)
Impairment of available-for-sale financial assets			(555,298)
REFIS effect - Law 11,941/09 and Law 12,865/13			(4,801)
Provisions/(Provision) for industrial restructuring	5,807	96,390	(122,854)
Hedge cash flow realized (Note 12 b)	(92,140)	(77,444)	(11,439)
Impairment of fair value of Transnordestina		(387,989)
Other expenses	(56,477)	(85,256)	(76,362)
	(646,944)	(1,076,730)	(1,341,191)
Other operating income (expenses), net	177,342	(413,221)	2,269,156

(*) This is a net amount, certain and due, arising from the final judicial decision favorable to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in sentencing the Eletrobrás to the payment of the correct interest and monetary correction of the Compulsory Loan. The final judicial decision, as well as the certainty about the amounts involved in the settlement of the judgment (judicial procedure to request the satisfaction of the right), allowed the conclusion that the right to receive this value is certain. Thus, in line with our legal and accounting advisors, we recognize the credits in noncurrent assets against the result of Other Operating Revenues.

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24. FINANCIAL INCOME (EXPENSES)

12 Months Ended

Dec. 31, 2017

Financial Income Expenses

FINANCIAL INCOME (EXPENSES)

24. FINANCIAL INCOME (EXPENSES)

	12/31/2017		12/31/2016	12/31/2015
Financial income
Related parties (Note 18 b)	61,549		60,964	65,084
Income from short-term investments	162,292		301,401	212,826
Gain from derivative	28,503		5,829	870
Gain on repurchase of debt securities			146,214	166,642
Other income (*)	42,730		129,182	42,298
	295,074		643,590	487,720
Financial expenses
Borrowings and financing - foreign currency		(827,841)	(930,508)	(938,047)
Borrowings and financing - local currency		(1,610,714)	(2,229,849)	(2,116,149)
Related parties (Note 18 b)			(3,185)	(1,333)
Capitalized interest (Notes 9 and 29)		91,957	215,794	166,366
Losses on derivatives			(362)	(4,956)
Interest, fines and late payment charges		(72,343)	(38,002)	(20,511)
Commission and bank fees		(159,088)	(155,249)	(81,594)
PIS/COFINS over financial income		(21,926)	(39,154)	(23,699)
REFIS effect net- Law 11,941/09
Other financial expenses (**)		(142,296)	(102,450)	(105,050)
		(2,742,251)	(3,282,965)	(3,124,973)
Inflation adjustment and exchange differences, net
Inflation adjustments, net	(10,556)		7,865	44,422
Exchange differences, net	(5,665)		921,310	(1,618,659)
Exchange gain (losses) on derivatives	(229)		(812,227)	846,328
	(16,450)		116,948	(727,909)
Financial expenses	(2,758,701)		(3,166,017)	(3,852,882)
Financial expenses, net	(2,463,627)		(2,522,427)	(3,365,162)
Statement of gains and (losses) on derivative transactions
Dollar-to-CDI swap				(18)
Dollar-to-real swap (NDF)				785,702
Future Dollar			(805,760)	25,381
Dollar-to-euro swap (NDF)				39,668
Dollar-to-euro swap	(229)		(6,467)	(4,405)
	(229)		(812,227)	846,328
Swap Pré x CDI			(299)	(4,956)
Swap CDI x Pré			(63)	870
Future DI	28,503		5,829
	28,503		5,467	(4,086)
	28,274		(806,760)	842,242

(*) Refers substantially an updating of tax credits.

(**) Refers substantially IOF (tax on financial transactions) and provision for IRRF (Corporate Income Tax) / CSLL (Social Contribution on Profit).

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25. SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2017

Segment Information

SEGMENT INFORMATION

According to the Group´s structure, the businesses are distributed and managed in five operating segments as follows:

·          Steel

The Steel Segment consolidates all the operations related to the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel, with operations in Brazil, United States, Portugal and Germany. The Segment supplies the following markets: construction, steel containers for the Brazilian chemical and food industries, home appliances, automobile and OEM (motors and compressors). The Company’s steel units produce hot and cold rolled steel, galvanized and pre-painted steel of great durability. They also produce tinplate, a raw material used to produce metallic containers.

Overseas, Lusosider, which is based in Portugal, produces cold rolled steel and galvanized steel. CSN LLC in the U.S.A. meets local market needs by supplying cold rolled and galvanized steel.  In January 2012, CSN acquired Stahlwerk Thüringen (SWT), a manufacturer of long steel located in Unterwellenborn, Germany. SWT is specialized in the production of shapes used for construction.

In January 2014 the production of long steel products started in Brazil, consolidating the company as a source of complete construction solutions, complementing its portfolio of products with high value added in the steel chain.

·          Mining

This segment encompasses the activities of iron ore and tin mining.

The high quality iron ore operations are located in the Iron Quadrilateral in Minas Gerais, which has its own mines and sells third party iron ore.

At the end of 2015, CSN and the Asian Consortium formalized a shareholders' agreement for the combination of assets linked to iron ore operations and the related logistics structure, forming a new company that has focused in mining of the Group activities from December 2015. In this context, the new company, currently named CSN Mineração S.A., holds the TECAR arraignment, the Casa de Pedra mine and all the shares of Namisa, which was incorporated on December 31, 2015. CSN still owns 100% of Minérios Nacional which includes the mines of Fernandinho (operational), Cayman and Pedras Pretas (mineral resources), all located in Minas Gerais.

Moreover, CSN controls the Estanho de Rondônia S.A., company with mining units and tin casting, in the state of Rondonia.

·          Logistics

i. Railroad

CSN has equity interests in three railroad companies: MRS Logística, which manages the former Southeast Network of Rede Ferroviária Federal S.A. (RFFSA), Transnordestina Logística S.A. and FTL - Ferrovia Transnordestina Logística S.A., which has the concession to operate the former Northeast Network of the RFFSA in the states of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas.

a) MRS

The railroad transportation services provided by MRS are fundamental to the supply of raw materials and the shipment of final products. The total amount of iron ore, coal and coke consumed by the Presidente Vargas Mill as well as part of the steel produced by CSN for the domestic market and for export are carried by MRS.

The Southeast Brazilian railroad system, encompassing 1,674 kilometers of tracks, serves the tri-state industrial area of São Paulo-Rio de Janeiro-Minas Gerais, in the southeast region, linking the mines located in Minas Gerais to the ports located in São Paulo and Rio de Janeiro, and the steel mills of CSN, Companhia Siderúrgica Paulista, or Cosipa, and Gerdau Açominas.  Besides serving other customers, the railroad system carries iron ore from the Company’s mines in Casa de Pedra, Minas Gerais, and coke and coal from the Itaguaí Port, in Rio de Janeiro, to Volta Redonda, and carries CSN’s export products to the ports of Itaguaí and Rio de Janeiro.

b) TLSA and FTL

TLSA and FTL hold the concession of the former RFFSA’s Northeast Network. The Northeast Network totals 4,238 km, divided into two sections: i) Network I, which comprises the São Luiz–Mucuripe, Arrojado–Recife, Itabaiana–Cabedelo, Paula Cavalcante–Macau–Recife, and Propriá–Jorge Lins (Network I) ;and ii) Network II, which comprises the Missão Velha–Salgueiro, Salgueiro–Trindade, Trindade– Eliseu Martins, Salgueiro–Porto de Suape, and Missão Velha–Porto de Pecém sections.

The Network links up with the main ports in the region, offering an important competitive advantage by means of opportunities for combined transportation solutions and logistics projects tailored to customer needs. 

II. Port Logistics

The Port Logistics Segment consolidates the operation of the terminal built during the post-privatization period of the ports, Sepetiba Tecon.. The Sepetiba terminal features complete infrastructure to meet all the needs of exporters, importers and ship owners. Its installed capacity exceeds that of most other Brazilian terminals. It has mooring berths and a huge storage area, as well as the most modern and appropriate equipment, systems and intermodal connections.

The Company’s constant investment in projects in the terminals consolidates the Itaguaí Port Complex as one of the most modern in Brazil.

·       Energy

CSN is one of the largest industrial consumers of electric power in Brazil. As energy is fundamental in its production process, the Company invests in assets for generation of electric power to guarantee its self-sufficiency. These assets are as follows: Itá hydroelectric power plant, in the State of Santa Catarina, with rated capacity of 1,450 MW, where CSN has a share of 29.5%; Igarapava hydroelectric power plant, Minas Gerais, with rated capacity of 210 MW, in which CSN holds 17.9% of the capital; and a thermoelectric co-generation Central unit with rated capacity of 238 MW, which has been operating at the UPV since 1999, that uses the residual gases produced by the steel mill itself.

·       Cement

The cement division consolidates the cement production, distribution and sale operations, which use the slag produced by the Volta Redonda plant’s blast furnaces.

In the second half of 2016, the Company started the operation of a new clinker kiln in Arcos/MG, where the Company already operates a clinker kiln using its limestone of a company-owned mine and also two cement mills in additions to the mills that already operate in Volta Redonda/RJ.

The information presented to Management regarding the performance of each business segment is generally derived directly from the accounting records, combined with some intercompany allocations.

·       Sales by geographic area

Sales by geographic area are determined based on the customers’ location. On a consolidated basis, domestic sales are represented by revenues from customers located in Brazil and export sales are represented by revenues from customers located abroad.

·       Results per segment

As from 2013, the Company no longer proportionately consolidates the joint ventures MRS and CBSI. For segment information preparation and presentation purposes, Management decided to maintain the proportionate consolidation of the joint ventures, as historically presented. For consolidated profit reconciliation purposes, the amounts of these companies were eliminated in the column “Corporate expenses/elimination”.

								12/31/2017
P&L	Steel	Mining	Logistics		Energy	Cement	Corporate expenses/elimination	Consolidated
			Port	Railroads	#N/D
Metric tons (Thou)- (unaudited (*)	4,921,719	32,576,843				3,313,061	(5,359,571)
Net revenues
Domestic market	7,818,552	829,268	238,240	1,416,612	407,671	487,129	(2,491,006)	8,706,466
Foreign market	5,140,471	3,791,703					885,961	9,818,135
Total Net Revenue (note 21)	12,959,023	4,620,971	238,240	1,416,612	407,671	487,129	(1,605,045)	18,524,601
Cost of sales and services	(10,537,547)	(3,005,840)	(156,997)	(1,024,696)	(285,085)	(512,762)	1,926,786	(13,596,141)
Gross profit	2,421,476	1,615,131	81,243	391,916	122,586	(25,633)	321,741	4,928,460
General and administrative expenses	(963,822)	(158,958)	(27,943)	(94,921)	(27,098)	(80,823)	(877,383)	(2,230,948)
Depreciation (note 22)	658,587	490,805	15,752	294,571	17,265	121,801	(190,016)	1,408,765
Proportionate EBITDA of joint ventures							538,170	538,170
Adjusted EBITDA	2,116,241	1,946,978	69,052	591,566	112,753	15,345	(207,488)	4,644,447
Sales by geographic area
Asia	23,364	3,592,226					885,961	4,501,551
North America	2,009,337							2,009,337
Latin America	506,951							506,951
Europe	2,564,823	197,701						2,762,524
Others	35,996	1,776						37,772
Foreign market	5,140,471	3,791,703					885,961	9,818,135
Domestic market	7,818,552	829,268	238,240	1,416,612	407,671	487,129	(2,491,006)	8,706,466
Total	12,959,023	4,620,971	238,240	1,416,612	407,671	487,129	(1,605,045)	18,524,601

								12/31/2016
P&L	Steel	Mining	Logistics		Energy	Cement	Corporate expenses/elimination	Consolidated
			Port	Railroads
Metric tons (Thou). - (unaudited)(*)	4,857,174	36,983,297				2,814,476	(4,062,774)
Net revenues
Domestic market	6,980,087	542,028	207,722	1,319,907	269,095	490,608	(2,079,534)	7,729,913
Foreign market	4,535,821	4,039,875					843,340	9,419,036
Total Net Revenue (note 21)	11,515,908	4,581,903	207,722	1,319,907	269,095	490,608	(1,236,194)	17,148,949
Cost of sales and services	(9,393,237)	(3,099,236)	(141,542)	(914,361)	(195,994)	(467,373)	1,571,701	(12,640,042)
Gross profit	2,122,671	1,482,667	66,180	405,546	73,101	23,235	335,507	4,508,907
General and administrative expenses	(914,927)	(185,149)	(25,180)	(83,020)	(25,196)	(74,528)	(907,128)	(2,215,128)
Depreciation (note 22)	679,074	461,287	13,430	227,792	17,140	73,030	(192,937)	1,278,816
Proportionate EBITDA of joint ventures							502,345	502,345
Adjusted EBITDA	1,886,818	1,758,805	54,430	550,318	65,045	21,737	(262,213)	4,074,940
Sales by geographic area
Asia	30,815	3,519,713					843,340	4,393,868
North America	1,891,865							1,891,865
Latin America	259,640							259,640
Europe	2,324,580	434,378						2,758,958
Others	28,921	85,784						114,705
Foreign market	4,535,821	4,039,875					843,340	9,419,036
Domestic market	6,980,087	542,028	207,722	1,319,907	269,095	490,608	(2,079,534)	7,729,913
Total	11,515,908	4,581,903	207,722	1,319,907	269,095	490,608	(1,236,194)	17,148,949

							12/31/2015
P&L	Steel	Mining	Logistics		Energy	Cement	Corporate expenses / elimination	Consolidated
			Port	Railroads
Metric tons (Thou.) - (unaudited)(*)	4,990,299	23,861,003				2,181,731
Net revenues
Domestic market	6,757,186	175,223	212,729	1,156,933	244,549	431,820	(1,295,907)	7,682,533
Foreign market	4,445,813	3,012,027					121,324	7,579,164
Total Net Revenue (note 23)	11,202,999	3,187,250	212,729	1,156,933	244,549	431,820	(1,174,583)	15,261,697
Cost of sales and services	(9,126,889)	(2,323,687)	(141,809)	(788,046)	(195,644)	(330,263)	1,166,237	(11,740,101)
Gross profit	2,076,110	863,563	70,920	368,887	48,905	101,557	(8,346)	3,521,596
General and administrative expenses	(955,247)	(69,602)	(20,473)	(89,678)	(23,186)	(72,894)	(669,441)	(1,900,521)
Depreciation (note 11 a)	670,496	377,344	12,777	189,361	17,073	46,505	(182,687)	1,130,869
Proportionate EBITDA of joint ventures							499,475	499,475
Adjusted EBITDA	1,791,359	1,171,305	63,224	468,570	42,792	75,168	(360,999)	3,251,419

Sales by geographic area
Asia	16,980	2,836,505					122,267	2,975,752
North America	1,901,989							1,901,989
Latin America	376,458	42,730					(943)	418,245
Europe	2,104,944	132,792						2,237,736
Others	45,442							45,442
Foreign market	4,445,813	3,012,027					121,324	7,579,164
Domestic market	6,757,186	175,223	212,729	1,156,933	244,549	431,820	(1,295,907)	7,682,533
Total	11,202,999	3,187,250	212,729	1,156,933	244,549	431,820	(1,174,583)	15,261,697

(*) The ore sales volumes presented in this note take into consideration Company sales and the interest in its subsidiaries and joint ventures .

·         EBITDA and Adjusted EBITDA

Adjusted EBITDA is the measurement based on which the chief operating decision maker assesses the segment performance and the capacity to generate recurring operating cash, consisting of profit for the year less net financial income (costs), income tax and social contribution, depreciation and amortization, equity in results of affiliated companies, results of discontinued operations and other operating income (expenses), plus the proportionate EBITDA of joint ventures.

Even though it is an indicator used in segment performance measurement, EBITDA is not a measurement recognized by accounting practices adopted in Brazil or IFRS, it does not have a standard definition, and may not be comparable with measurements using similar names provided by other entities.

As required by IFRS 8, the table below shows the reconciliation of the measurement used by the chief operating decision maker with the results determined using the accounting practices:

	12/31/2017	12/31/2016	12/31/2015
Net income (loss) for the year	111,229	(853,058)	(1,215,964)
Result from Discontinued Operations		9,561	(1,911)
Depreciation/Amortization/Depletion (Note 22)	1,408,765	1,278,816	1,130,869
Income tax and social contribution (Note 14)	409,109	266,546	2,903,216
Financial income (cost) (Note 24)	2,463,627	2,522,427	3,365,162
EBITDA	4,392,730	3,224,292	6,181,372
Other operating (income) expenses (Note 23)	(177,342)	413,221	(2,269,156)
Equity in results of affiliated companies	(109,111)	(64,918)	(1,160,272)
Proportionate EBITDA of joint ventures	538,170	502,345	499,475
Adjusted EBITDA (*)	4,644,447	4,074,940	3,251,419

(*) The Company discloses its adjusted EBITDA net of its share of investments and other operating income (expenses) because it understands that these should not be included in the calculation of recurring operating cash generation.

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26. EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2017

Employee Benefits

EMPLOYEE BENEFITS

26. EMPLOYEE BENEFITS

The pension plans granted by the Company cover substantially all employees. The plans are administered by Caixa Beneficente dos Empregados da CSN (‘CBS”), a private non-profit pension fund established in July 1960 which has as members the employees (and former employees) of the Company and some subsidiaries who joined the fund through an agreement, and the employees of CBS itself. The Executive Officers of CBS is formed by a CEO and two other executive officers, all appointed by CSN. The Decision-Making Board is the higher decision-making and guideline-setting body of CBS, composed by the president and ten members, six chosen by CSN, and four elected by the fund’s participants.

Until December 1995, CBS Previdência administered two defined benefit plans based on years of service, salary and Social Security benefits. On December 27, 1995 the then Private Pension Secretariat (“SPC”) approved the implementation of a new benefit plan, effective beginning that date, called Mixed Supplementary Benefit Plan (‘Mixed Plan”), structured in the form of a variable contribution plan that was discontinued on September 16, 2013. As from that date, all new employees must join the CBSPrev Plan, structured in the defined contribution modality, created also in September 2013.

As of December 31, 2017 CBS had 35,176 participants (34,051 as of December 31, 2016), of whom 20,734 were active contributors (19,442 as of December 31, 2016), 13,587 were retired employees (13,783 as of December 31, 2016), and 855 were related beneficiaries (826 as of December 31, 2016). Out of the total participants as of December 31, 2017, 11,367 belonged to the defined benefit plan, 12,567 to the mixed plan, 1,141 to the CBSPrev Namisa plan, and 10,101 to the CBSPrev plan.

The plan assets of CBS are primarily invested in repurchase agreements (backed by federal government securities), federal government securities indexed to inflation, shares, loans and real estate. As of December 31, 2017 and 2016 CBS held 20,143,031 common shares of CSN. The total plan assets of the entity amounted to R$5.1 billion as of December 31, 2017 (R$5.0 billion as of December 31, 2016). The administrators of the CBS funds seek to match plan assets with benefit obligations payable on a long-term basis. Pension funds in Brazil are subject to certain restrictions regarding their capacity for investment in foreign assets and, therefore, these funds invest mainly in Brazilian securities.

Plan Assets are all available assets and the benefit plans’ investments, not including the amounts of debts to sponsors.

For the defined benefit plans 35% of the average salary” and “average salary supplementation plan, the Company holds a financial guarantee with CBS Previdência, the entity that administers said plans, to ensure their financial and actuarial balance, in the event of any future actuarial loss or actuarial gain.

As provided for in the prevailing law that governs the pension fund market, for the years ended December 31, 2017 and 2016, CSN did not have to pay the installments because the defined benefit plans posted actuarial gains for the period.

26. a) Description of the pension plans

Plan covering 35% of the average salary

This plan began on February 1, 1966 and is a defined benefit plan aimed at paying pensions (for length of service, special situations, disability or old age) on a lifetime basis, equivalent to 35% of the adjusted average of the participant’s salary for the last 12 months. The plan also guarantees sick pay to participants on Official Social Security leaves of absence and further ensures payments of savings fund, funeral allowance and pecuniary aid. This plan was discontinued on October 31, 1977 when the new supplementary plan based on average salary took effect.

Average salary supplementation plan

This plan began on November 1, 1977 and is a defined benefit plan aimed at complementing the difference between the adjusted average of the participant’s salary for the last 12 months and the Official Social Security benefit for retirement, also on a lifetime basis. As in the 35% plan, there is coverage for the benefits of sick pay, death and pension. This plan was discontinued on December 26, 1995 with the creation of the mixed supplementary benefit plan.

Mixed supplementary benefit plan

This plan began on December 27, 1995 and is a variable contribution plan. Besides the scheduled retirement benefit, it also covers the payment of risk benefits (pension paid while the participant is still working, disability compensation and sick/accident pay). Under this plan, the retirement benefit is calculated based on the amount accumulated by the monthly contributions of the participants and sponsors, as well as on each participant’s option for the manner in which they receive them, which can be lifetime (with or without continuity of pension for death) or through a percentage applied to the balance of the benefit-generating fund (loss for indefinite period). After retirement is granted, the plan takes on the characteristics of a defined benefit plan if the participant has chosen to receive his benefit in the form of monthly income for life. This plan was discontinued on September 16, 2013 when the CBS Prev plan became effective.

CBS Prev Plan

The new CBS Prev Plan, which is a defined contribution plan, started on September 16, 2013. Under this plan, the retirement benefit is determined based on the accumulated amount by monthly contributions of participants and sponsors. To receive the benefit, each participant can opt for: (a) receiving part in cash (up to 25%) and the remaining balance through a monthly income through a percentage applied to the benefit-generating fund, not being applicable to death pension benefits, or (b) receive only a monthly income through a percentage applied to the benefit-generating fund.

With the creation of the CBS Prev Plan, the mixed supplementary benefit plan was discontinued for the entry of new participants as from September 16, 2013.

CBSPREV Namisa Plan

It is a Defined Contribution plan with benefits of risks during the activity (projection of the balances in case of disability or death and sickness / accident allowanced). It has been in operation since January 6, 2012, when it was created exclusively for the employees of Nacional Minérios S.A. After the corporate reorganization, which took place in 2016, other Sponsors joined this Plan, among them CSN Mineração S.A. (Previously Congonhas Minérios S.A.)

Under this plan, all the benefits offered are calculated based on the accumulated amount from the monthly contributions of participants and sponsors, and are paid through a percentage applied to the balance of the benefit generating fund. The CBSPREV Namisa Plan is closed since July 2017.

26.b) Investment policy

The investment policy establishes the principles and guidelines that will govern the investments of funds entrusted to the entity, in order to foster the security, liquidity and profitability required to ensure equilibrium between the plan’s assets and liabilities based on an ALM (Asset Liability Management) study that takes into consideration the benefits of participants and beneficiaries for each plan.

The investment plan is reviewed annually and approved by the Decision-Making Board considering a five-year horizon, as established by resolution CGPC 7 of December 4, 2003. The investment limits and criteria established in the policy are based on Resolution 3,792/09 published by the National Monetary Council (“CMN”).

26.c) Employee benefits

The actuarial calculations are updated at the end of each annual reporting period by outside actuaries and presented in the financial statements pursuant to IAS 19 Employee Benefits.

	12/31/2017	12/31/2016	12/31/2017	12/31/2016
	Actuarial asset		Actuarial liabilities
Pension plan benefits (Note 9 and 15)	(111,281)	(119,854)	41,937	28,004
Post-employment healthcare benefits			866,784	691,262
	(111,281)	(119,854)	908,721	719,266

The reconciliation of employee benefits’ assets and liabilities is as follows:

	12/31/2017	12/31/2016
Present value of defined benefit obligation	3,077,849	2,872,442
Fair value of plan assets	(3,305,356)	(3,193,493)
Deficit (Surplus)	(227,507)	(321,051)
Restriction to actuarial assets due to recovery limitation	158,163	229,201
Liabilities (Assets), net	(69,344)	(91,850)
Liabilities	41,937	28,004
Assets	(111,281)	(119,854)
(Assets) liabilities recognized in the balance sheet	(69,344)	(91,850)

The movement in the present value of the defined benefit obligation during 2017 is as follows:

	12/31/2017	12/31/2016
Present value of obligations at the beginning of the year	2,872,442	2,430,381
Cost of service	1,285	1,244
Interest cost	322,359	311,361
Benefits paid	(284,777)	(264,287)
Actuarial loss/(gain)	166,540	393,743
Present value of obligations at the end of the year	3,077,849	2,872,442

The movement in the fair value of the plan assets during 2017 is as follows:

	12/31/2017	12/31/2016
Fair value of plan assets at the beginning of the year	(3,193,493)	(2,684,736)
Interest income	(360,013)	(345,521)
Benefits paid	284,777	264,287
Expected return on plan assets (less interest income)	(36,627)	(427,523)
Fair value of plan assets at the end of the year	(3,305,356)	(3,193,493)

The amounts recognized in the income statement for the year ended December 31, 2017 and 2016 are comprised as follows:

	12/31/2017	12/31/2016	12/31/2015
Cost of current service	1,285	1,244	1,807
Interest cost	322,359	311,361	293,533
Expected return on plan assets	(360,013)	(345,521)	(322,460)
Interest on the asset ceiling effect	26,843	22,189	18,422
	(9,526)	(10,727)	(8,698)
Total unrecognized costs (income) (*)	6	7	4
Total (income) recognized in the income statement	(9,532)	(10,734)	(8,702)
Total (income), net (*)	(9,526)	(10,727)	(8,698)

(*) Effect of the limit of IAS 19 Employee Benefits.

The (cost)/income is recognized in the income statement in other operating expenses.

The movement in the actuarial gains and losses in 2017 is as follows:

	12/31/2017	12/31/2016	12/31/2015
Actuarial losses and (gains)	166,540	393,743	(137,859)
Return on plan assets (less interest income)	(36,627)	(427,523)	147,728
Change in the asset’s limit (excluding the interest revenue)	(97,882)	41,796	(4,208)
	32,031	8,016	5,661
Actuarial losses and (gains) recognized in other comprehensive income	32,037	8,023	5,665
Unrecognized actuarial (gains)	(6)	(7)	(4)
Total cost of actuarial losses and (gains) (*)	32,031	8,016	5,661

(*) Actuarial (gain)/loss results from the fluctuation in the investments comprised in the CBS’s asset portfolio.

Breakdown of actuarial gains or losses, required by IAS 19:

	12/31/2017
Loss due to change in demographic assumptions	(3,488)
Loss due to change in financial assumptions	264,638
Loss due to experience adjustments	(94,610)
Return on plan assets (less interest income)	(36,627)
Change in the asset’s limit (excluding the interest revenue)	(97,882)
Actuarial losses and (gains)	32,031

The main actuarial assumptions used were as follows:

	12/31/2017	12/31/2016
Actuarial financing method	Projected unit credit	Projected unit credit
Functional currency	Real (R$)	Real (R$)
Recognition of plan assets	Fair value	Fair value
Nominal discount rate	Milênnium Plan : 10.42% Plan 35%: 10.30% and Supplementation: 10.32%	Milenium Plan: 11.68%, Plan 35% and Suplementation: 11.72%
Inflation rate	5.00%	5.50%
Nominal salary increase rate	6.05%	6.56%
Nominal benefit increase rate	5.00%	5.50%
Rate of return on investments	Milênnium Plan: 10.42% Plan 35% :10.30% and Supplementation: 10.32%	Milenium Plan: 11.68%, Plan 35% and Suplementation: 11.72%
General mortality table	35% and Average Salary Supplementation  Plans :  AT 2000 segregated by gender (10% smoothed)	Milenium Plan, 35% and Average Salary Supplementation Plans: AT 2000 segregated by gender (10% smoothed)
Disability table	Plan 35% and Supplementation: Light Média Millênnium Plan: Prudential ( retirement)	Light Median
Disability mortality table	Winklevoss - 1%	Winklevoss - 1%
Turnover table	Millennium plan 5% p.a., nil for DB plans	Millennium plan 5% p.a., nil for DB plans
Retirement age	100% on the first date he/she becomes eligible for programmed retirement benefit under the plan	100% on the first date he/she becomes eligible for programmed retirement benefit under the plan
Household of active participants	95% will be married at the time of retirement, with the wife being 4 years younger than the husband	95% will be married at the time of retirement, with the wife being 4 years younger than the husband

The assumptions related to the mortality table are based on published statistics and mortality tables. These tables represent an average life expectancy in years of employees who retire at the age of 65, as shown below:

	12/31/2017		12/31/2016
	BD Plan (*)	Milênio Plan (*)	BD Plan (*)	Milênio Plan (*)
Longevity at age of 65 for current participants
Male	20.45	19.55	20.45	19.55
Female	23.02	22.17	23.02	22.17
Longevity at age of 65 for current participants who are 40
Male	42.69	41.59	42.69	41.59
Female	46.29	45.30	46.29	45.30

(*) The BD Plan is part of the 35% and Average Salary Supplementation Plan and the Milênio Plan is part of the Mixed Supplementary Benefit Plan.

Allocation of plan assets:

		12/31/2017		12/31/2016
Variable income	50,966	1.54%	62,904	1.97%
Fixed income	3,085,783	93.36%	2,966,272	92.88%
Real estate	44,083	1.33%	42,383	1.33%
Others	124,524	3.77%	121,934	3.82%
Total	3,305,356	100.00%	3,193,493	100.00%

Variable-income assets comprise mainly CSN shares.

Fixed-income assets comprise mostly debentures, Interbank Deposit Certificates (“CDI”) and National Treasury Notes (“NTN-B”).

Real estate refers to buildings appraised by a specialized asset appraisal firm. There are no assets in use by CSN and its subsidiaries.

For the pension plan, the expense as of December 31, 2017 was R$41,544 (R$35,798 as of December 31, 2016).

26.d) Expected contributions

No contributions are expected to be paid to the defined benefit plans in 2017.

For the mixed supplementary benefit plan, contributions in the amount of R$26,170 are forecasted to be paid in 2018 for the portion of defined contribution and R$784 for the portion of defined benefit (risk benefit).

26.e) Sensitivity analysis

The quantitative sensitivity analysis regarding the significant assumptions for the pension plans as of December 31, 2017 is as follows:

12/31/2017

	Plan covering 35% of the average salary		Average salary supplementation plan		Mixed supplementary benefit plan (Milênio Plan)
Assumption: Discount rate
Sensitivity level	0.5%	-0.5%	0.5%	-0.5%	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations	246	(320)	879	(919)	(656)	491
Effect on present value of obligations	(15,691)	15,342	(75,107)	82,773	(46,256)	49,545
Assumption: Salary growth
Sensitivity level	0.5%	-0.5%	0.5%	-0.5%	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations					330	(283)
Effect on present value of obligations					2,588	(2,221)
Assumption: Mortality table
Sensitivity level	0.5%	-0.5%	0.5%	-0.5%	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations	1,799	(1,646)	8,896	(8,120)	5,555	(4,993)
Effect on present value of obligations	17,563	(16,073)	86,537	(79,006)	53,031	(47,660)
Assumption: Benefit adjustment
Sensitivity level	1.0%	-1.0%	1.0%	-1.0%	1.0%	-1.0%
Effect on current service cost and on interest on actuarial obligations	(1,045)	1,041	(4,623)	4,564	(894)	904
Effect on present value of obligations	(10,158)	10,116	(44,773)	44,205	(9,417)	9,425

The forecast benefit payments of the defined benefit plans for future years are as follows:

Forecast benefit payments	2017
Year 1	276,660
Year 2	285,841
Year 3	294,923
Year 4	303,858
Year 5	312,591
Next 5 years	1,682,216
Total forecast payments	3,156,089

26.f) Post-employment health care plan

Refers to a healthcare plan created on December 1, 1996 exclusively for former retired employees, pensioners, those who received an amnesty, war veterans, widows of employees who died as a result of on-the-job accidents and former employees who retired on or before March 20, 1997 and their dependents. Since then, the healthcare plan does not allow the inclusion of new beneficiaries. The plan is sponsored by CSN.

The amounts recognized in the balance sheet were determined as follows:

	12/31/2017	12/31/2016
Present value of obligations	866,784	691,262
Liabilities	866,784	691,262

The reconciliation of the healthcare liabilities is as follows:

	12/31/2017	12/31/2016
Actuarial liability at the beginning of the year	691,262	489,074
Expenses recognized in income for the year	77,269	62,342
Sponsor's contributions transferred in prior year	(72,192)	(70,411)
Recognition of loss/(gain) for the year	170,445	210,257
Actuarial liability at the end of the year	866,784	691,262

The actuarial gains and losses recognized in shareholders' equity are as follows:

	12/31/2017	12/31/2016	12/31/2015
Actuarial gain (loss) on obligation	170,445	210,257	(97,501)
Gain (loss) recognized in shareholders' equity	170,445	210,257	(97,501)

The weighted average life expectancy based on the mortality table used to determined actuarial obligations is as follows:

	12/31/2017	12/31/2016
Longevity at age of 65 for current participants
Male	19.55	19.55
Female	22.17	22.17
Longevity at age of 65 for current participants who are 40
Male	41.59	41.59
Female	45.30	45.30

The actuarial assumptions used for calculating postemployment healthcare benefits were:

	12/31/2017	12/31/2016
Biometrics
General mortality table	AT 2000 segregated by gender	AT 2000 segregated by gender
Disability moratality table	Winklevoss with death probabilities reduced by 1% in all ages	Winklevoss with death probabilities reduced by 1% in all ages
Financial
Actuarial nominal discount rate	10.34%	11.73%
Inflation	5.00%	5.50%
Nominal increase in medical cost based on age	0.5% - 3.00%real a.a	0.5% - 3.00%real a.a
Nominal medical costs growth rate	8.41%	8.93%
Average medical cost	1,001.69	698,57

26.g) Sensitivity analysis

The quantitative sensitivity analysis regarding the significant assumptions for the postemployment healthcare plans as of December 31, 2017 is as follows:

		12/31/2017
	Healthcare Plan
	Assumption: Discount rate
Sensitivity level	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations	248	660
Effect on present value of obligations	(33,996)	36,985
	Assumption: Medical Inflation
Sensitivity level	1.0%	-1.0%
Effect on current service cost and on interest on actuarial obligations	8,150	(6,698)
Effect on present value of obligations	78,813	(67,670)
	Assumption: Mortality table
Sensitivity level	1.0%	-1.0%
Effect on current service cost and on interest on actuarial obligations	(2,059)	2,040
Effect on present value of obligations	(19,906)	19,728

The forecast benefit payments of the postemployment healthcare plans for future years are as follows:

Forecast benefit payments	2017
Year 1	75,009
Year 2	78,161
Year 3	81,121
Year 4	83,850
Year 5	86,296
Next 5 years	456,301

Total forecast payments                  860,738

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27. COMMITMENTS

12 Months Ended

Dec. 31, 2017

Commitments

COMMITMENTS

27. COMMITMENTS

27. a) Take-or-pay contracts

As of December 31, 2017 and 2016, the Company was a party to take-or-pay contracts as shown in the following table:

	Payments in the period (in millions of R$)
Type of service	2016	2017	2018	2019	2020	2021	After 2021	Total
Transportation of iron ore, coal, coke, steel products, cement and mining products.	873,186	957,373	877,288	877,288	854,609	732,391	3,602,687	6,944,263
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets.	621,551	563,743	246,624	36,159	36,159	36,159		355,101
Processing of slag generated during pig iron and steel production	49,487	8,880	6,012	6,012	6,012	6,012	7,515	31,563
Manufacturing, repair, recovery and production of ingot casting machine units.	36,765	52,103	18,118	5,665				23,783
	1,580,989	1,582,099	1,148,042	925,124	896,780	774,562	3,610,202	7,354,710

27. b) Concession agreements

Minimum future payments related to government concessions as of December 31, 2017 fall due according to the schedule set out in the following table:

Concession	Type of service	2018	2019	2020	2021	After 2021	Total
FTL (Ferrovia Transnordestina Logística)	30-year concession granted on December 31, 1997, renewable for another 30 years, to develop public service and operating the railway system in northeastern Brazil. The northeastern railway system covers 4238 kilometers of railway network and operates in Maranhão, Piauí, Ceará, Paraíba, Pernambuco, Alagoas and Rio Grande do Norte.	9,069	9,069	9,069	9,069	54,414	90,690
Tecar	Concession to operate the TECAR, a solid bulk terminal, one of the four terminals that make up the Port of Itaguai, located in Rio de Janeiro. The concession was renewable and the agreement expires in 2047.	107,296	107,296	107,296	107,296	2,789,696	3,218,880
Tecon	25-year concession started in July 2001. On May 10, 2017,, was approved the Decree nº 9,048, which changes de concession extension period for port operations. It was established that the requested extension period, added to the initial period, cannot exceed 70 years.	30,958	30,958	30,958	30,958	139,309	263,141
		147,323	147,323	147,323	147,323	2,983,419	3,572,711

27.c) Projects and other commitments

·                  Transnordestina project

The Transnordestina project which corresponds to rail network II of the Northeast Railway System, includes building 1,753 km of new, next-generation, wide-gauge tracks. The project posts a 52% progress which was estimated to be concluded in 2017 (completion period currently under review and discussion with the responsible agencies). The Company expects that the investments will permit Transnordestina Logística S.A.,the concessionaire that holds the Transnordestina project, to transport of several products, such as iron ore, limestone, soy, cotton, sugarcane, fertilizers, oil, and fuel. The concession will expire in 2057 and can be terminated before this date if the minimum return agreed with the Government is reached. Transnordestina has already obtained the required environmental permits, purchased part of the equipment, contracted some of the services, and in certain regions the project is at an advanced implementation stage.

The sources of financing for the project are: (i) financing granted by Banco do Nordeste/ FNE and the BNDES, (ii) debentures issued by FDNE, (iii) Permanent Track Use contracts, and (iv) capital contribution by CSN and public shareholders. The approved construction investment is R$7,542,000 and the balance of disbursable funds will be adjusted using the IPCA as from April 2012. Should additional funds be required, they will be provided by CSN and/or third parties under Permanent Track Use contracts.

The budget to conclude the project is under review, currently it is being analyzed by the competent agencies (shareholders), and it is expected that the reviewed budget will be as follows: Missão Velha-Salgueiro: R$0.4 billion, Salgueiro-Trindade: R$0.7 billion, Trindade-Eliseu Martins: R$2.4 billion, Missão Velha-Porto de Pecém: R$3 billion, Salgueiro-Porto de Suape: R$4.7 billion, amounting R$ 11.2 billion.

The Company guarantees 100% of TLSA’s financing granted by Banco do Nordeste/FNE and the BNDES, and 49.15% of the debentures issued by FDNE (includes the corporate guarantee of 48.47%, a collateral letter of 1.25% issued to BNB and the corporate guarantee of 1.25% pledged to BNB). Under the FDNE charter, approved by Federal Decree 6,952/2009, and the Investment Agreement entered into with the public shareholders/ financiers, 50% of the debentures may be converted into TLSA shares.

The Court of Auditors of the Union - TCU through a protective order issued in May 2016, regarding the case TC 012.179/2016, forbade new transfers of public resources to TLSA from Valec Engenharia, Construções e Ferrovias S.A., Fundo de Investimento do Nordeste – FINOR, Fundo Constitucional de Financiamento do Nordeste – FNE, Fundo de Desenvolvimento do Nordeste – FDNE, Banco Nacional de Desenvolvimento Econômico e Social – BNDES and BNDES Participações S.A.– BNDESPar. After filing an appeal against the protective order and providing the necessary explanations, in June 2016 the order issued by TCU was withdrawn unanimously by the members of this court, with the continuity of investments planned having been restored.

By means of another protective order issued in January 2017, relating to the case TC 012.179/2016, the Court of Auditors of the Union forbade new transfers of public resources to TLSA by Valec Engenharia, Construções e Ferrovias S.A., Fundo de Investimento do Nordeste – FINOR, Fundo Constitucional de Financiamento do Nordeste – FNE, Fundo de Desenvolvimento do Nordeste – FDNE, Banco Nacional de Desenvolvimento Econômico e Social – BNDES and BNDES Participações S.A.– BNDESPar. The Company has provided the required clarifications to the TCU and has acted firmly in order that the decision can be repealed soon and the flow of investments planned can be restored.

There is an administrative procedure with the ANTT (National Land Transportation Agency) which evaluates the regular compliance with the obligations of the Concession Agreement corresponding to System II by Concessionaire TLSA. ANTT’s technical area, in a unilateral opinion, understood that non-compliance with the contractual obligations by the Concessionaire is evidenced. The technical area’s opinion is under evaluation and, if the irregularity is proven, ANTT may apply the applicable penalties, among them, forfeiture. The procedure is in fact finding phase and until the moment there is not final decision on the merit.

In relation to the rail network I, operated by Ferrovia Transnordestina Logística S.A.(“FTL”), there is an administrative procedure with the National Agency for Land Transportation (“ANTT”) that analyzes the regular fulfillment of the obligations of the Concession Agreement by the Concessionaire FTL. In view of a unilateral analysis, ANTT informed that FTL would have failed to comply with the TAC (Terms of Undertaking) signed in 2013 as a result of the non-compliance with the production target for 2013. ANTT decided to file an administrative proceeding to investigate the non-compliance with the concession agreement and, if the irregularity is proved, it can apply the related penalties, among them the forfeiture. The Concessionaire has not appealed against such decision, and the proceeding is at the finding-of-facts stage and, so far, there is no final decision on the merit.

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28. INSURANCE

12 Months Ended

Dec. 31, 2017

Insurance

INSURANCE

28. INSURANCE

Aiming to properly mitigate risk and in view of the nature of its operations, the Company and its subsidiaries have taken out several different types of insurance policies. Such policies are contracted in line with the CSN Risk Management policy and are similar to the insurance taken out by other companies operating in the same lines of business as CSN and its subsidiaries. The risks covered under such policies include the following: Domestic Transportation, International Transportation, Life and Casualty, Health Coverage, Fleet Vehicles, D&O (Civil Liability Insurance for Directors and Officers), General Civil Liability, Engineering Risks, naming Risks, Export Credit, Insurance guarantee and Port Operator’s Civil Liability.

In 2017, after negotiation with insurers and reinsurers in Brazil and abroad, an insurance policy was issued for the contracting of a policy of Operational Risk of Property Damages and Loss of Profits, with effect from September 30, 2017 to March 31, 2019. Under the insurance policy, the LMI (Maximum Limit of Indemnity) is US$600 million and covers the following units and subsidiaries of the Company: Presidente Vargas steelworks, CSN Mineração, and Sepetiba Tecon. CSN takes responsibility for a range of retention of US$375 million in excess of the deductibles for property damages and loss of profits.

In view of their nature, the risk assumptions adopted are not part of the scope of an audit of the financial statements and, accordingly, were not audited by our independent auditors.

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29. ADDITIONAL INFORMATION TO CASH FLOWS

12 Months Ended

Dec. 31, 2017

Additional Information To Cash Flows

ADDITIONAL INFORMATION TO CASH FLOWS

29. ADDITIONAL INFORMATION TO CASH FLOWS

The following table provides additional information on transactions related to the statement of cash flows:

			Consolidated
	12/31/2017	12/31/2016	12/31/2015
Income tax and social contribution paid	268,847	456,227	134,920
Addition to PP&E with interest capitalization (note 9 and 24)	91,957	215,794	166,366
Acquisition of fixed assets through loans.	4,265	7,437	566,413
Capitalization in subsidiaries without cash	20,264		3,229
	385,333	679,458	870,928

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30. INDEPENDENT INVESTIGATION - CONSTRUCTION OF THE LONG STEEL PLANT

12 Months Ended

Dec. 31, 2017

Independent Investigation - Construction Of Long Steel Plant

INDEPENDENT INVESTIGATION - CONSTRUCTION OF THE LONG STEEL PLANT

30. INDEPENDENT INVESTIGATION – CONSTRUCTION OF THE LONG STEEL PLANT

Considering the information from a Company’s executive published in the press in April 2017, based on testimonials to the Court, the Audit Committee decided to engage a specialized forensic service to conduct an external independent investigation of the contractual relationship related to the construction of CSN’s Long Steel Plant (contract on which there would have been alleged undue payments, in the form of bonus, in order to reimburse payments made to political parties), as well as to analyze the extent of the business relationships between the contracting parties. The conclusion of the investigation is that nothing from the testimonials referred to above was confirmed, and there are no contingencies deriving from the issues investigated. Consequently, the Company understands that there is no basis to justify the recording of any provision for losses or the disclosure of contingency. In October 2017, following what was determined by the Federal Supreme Court in Brazil, the Federal Police Department initiated an investigation to clear the facts mentioned in the given testimony. Until this date, nothing was confirmed by the investigation.

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31. SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2017

Subsequent Events

SUBSEQUENT EVENTS

31. SUBSEQUENT EVENTS

· Debt renegotiation

In February 2018 the Company concluded the renegotiation of its debt of R$4.9 billion with Banco do Brasil S.A. (“BB”) related to the issuance of its own Export Credit Notes as well as the issuances of its subsidiary CSN Mineração, moving maturity dates from 2018 through 2022 to dates until December 2024, giving as collateral some of our preferred shares of Usiminas (USIM5). Additionally, the Company is under similar negotiation with Caixa Econômica Federal (“CEF”) to postpone maturity dates of its debt, having the primary conditions favorably appreciated by the Directive Council of CEF.

· Debt issuance

In February 2018 the Company issued debt instruments (“Notes”) through its wholly-owned subsidiary CSN Resources S.A. in the amount of US$350 million, with maturity date in 2023 and annual interests of 7.625%. In conjunction with the debt issuance, the Company made a repurchase offer (“Tender Offer”) of the outstanding Notes previously issued by CSN Islands XI Corp and CSN Resources S.A., wholly-owned subsidiaries of the Company, having been repurchased US$350 million in Notes with maturities scheduled for 2019 and 2020. The Notes are unconditionally and irrevocably guaranteed by the Company.

• Debt Amortization

The Company paid in advance on February 15 and March 5, 2018 the amounts of US$ 208 million and US$ 148 million, respectively, of foreign debt ("Bonds") totaling US$ 356 million.

•    Transaction with the related party Banco Fibra

During the first quarter of 2018 we purchased US$23 million of 8,125% p.a. of Notes issued by Banco Fibra, with maturity date in February 2028.
 

•    Sale of shares held in treasury

In April 2018 we sold 22,981,500 shares that were held in treasury at the unit average price of R$7.86, equivalent to R$181MM, and were sold at the unit average price of R$9.29, totaling cash inflows in the amount of R$213MM. The surplus of R$32MM between the sale price of the shares and their purchase price was recognized in the capital reserve.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2017

Summary Of Significant Accounting Policies Policies

Basis of preparation

2.a) Basis of preparation

The consolidated financial statements have been prepared and are being presented in accordance with International Financial Reporting Standards “IFRS” issued by the International Accounting Standards Board (IASB). All the relevant information of the financial statements, and only this information, are being highlighted and correspond to those used by the Company's management.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. It is disclosed in the notes to this report all subjects involving a high degree of judgment or complexity or when assumptions and estimates are significant to the consolidated financial statements, those subjects are related to the allowance for doubtful debts, provision for inventory losses, provision for labor, civil, tax, environmental and social security contingences, depreciation, amortization, depletion, provision for impairment, deferred taxes, financial instruments and employee benefits. Actual results may differ from these estimates.

The financial statements are presented in thousands of Brazilian Reais (R$). Depending on the applicable IFRS standard, the measurement criteria used in preparing the financial statements considers the historical cost, net realizable value, fair value or recoverable amount. When the IFRS allows us to option between acquisition cost and other measurement criteria, the acquisition cost was the criteria used.

The consolidated financial statements were approved by the Board of Directors on April 30, 2018.

Consolidated financial statements

2.b) Consolidated financial statements

The accounting policies have been consistently applied to all consolidated companies. The consolidated financial statements for the years ended December 31, 2017 and 2016 include the following direct and indirect subsidiaries, joint ventures and joint operations, as well as the exclusive funds, as follows:

	Equity interests (%)
Companies	12/31/2017	12/31/2016	Core business
Direct interest in subsidiaries: full consolidation
CSN Islands VII Corp.	100.00	100.00	Financial transactions
CSN Islands XI Corp.	100.00	100.00	Financial transactions
CSN Islands XII Corp.	100.00	100.00	Financial transactions
CSN Minerals S.L.U. (1)	100.00	100.00	Equity interests
CSN Export Europe, S.L.U. (1)	100.00	100.00	Financial transactions and Equity interests
CSN Metals S.L.U. (1)	100.00	100.00	Equity interests and Financial transactions
CSN Americas S.L.U. (1)	100.00	100.00	Equity interests and Financial transactions
CSN Steel S.L.U.	100.00	100.00	Equity interests and Financial transactions
TdBB S.A (*)	100.00	100.00	Equity interests
Sepetiba Tecon S.A.	99.99	99.99	Port services
Minérios Nacional  S.A.	99.99	99.99	Mining and Equity interests
Companhia Florestal do Brasil	99.99	99.99	Reforestation
Estanho de Rondônia S.A.	99.99	99.99	Tin Mining
Companhia Metalúrgica Prada	99.99	99.99	Manufacture of containers and distribution of steel products
CSN Gestão de Recursos Financeiros Ltda. (*)	99.99	99.99	Management of funds and securities portfolio
CSN Mineração S.A.	87.52	87.52	Mining and Equity interests
CSN Energia S.A. (2)	99.99	100.00	Sale of electric power
FTL - Ferrovia Transnordestina Logística S.A.	90.78	90.78	Railroad logistics
Nordeste Logística S.A.	99.99	99.99	Port services
CGPAR - Construção Pesada S.A. (3)	-	100.00	Mining support services and Equity interests
Indirect interest in subsidiaries: full consolidation
Companhia Siderúrgica Nacional LLC	100.00	100.00	Steel
CSN Europe Lda.(4)	-	100.00	Financial transactions, product sales and Equity interests
CSN Ibéria Lda. (4)	-	100.00	Financial transactions, product sales and Equity interests
Lusosider Projectos Siderúrgicos S.A.	99.94	99.94	Equity interests and product sales
Lusosider Aços Planos, S. A.	99.99	99.99	Steel and Equity interests
CSN Resources S.A.	100.00	100.00	Financial transactions and Equity interests
Companhia Brasileira de Latas (2)	99.99	100.00	Sale of cans and containers in general and Equity interests
Companhia de Embalagens Metálicas MMSA	99.67	99.67	Production and sale of cans and related activities
Companhia de Embalagens Metálicas - MTM	99.67	99.67	Production and sale of cans and related activities
CSN Steel Holdings 1, S.L.U.	100.00	100.00	Financial transactions, product sales and Equity interests
CSN Productos Siderúrgicos S.L.	100.00	100.00	Financial transactions, product sales and Equity interests
Stalhwerk Thüringen GmbH	100.00	100.00	Production and sale of long steel and related activities
CSN Steel Sections UK Limited (*)	100.00	100.00	Sale of long steel
CSN Steel Sections Polska Sp.Z.o.o	100.00	100.00	Financial transactions, product sales and Equity interests
CSN Asia Limited	100.00	100.00	Commercial representation
CSN Mining Holding, S.L  (5)	87.52	87.52	Financial transactions, product sales and Equity interests
CSN Mining GmbH	87.52	87.52	Financial transactions, product sales and Equity interests
CSN Mining Asia Limited	87.52	87.52	Commercial representation
Aceros México CSN	100.00	100.00	Commercial representation,sale of steel and related activity
Lusosider Ibérica S.A. (6)	99.94		Steel, commercial and industrial activities and equity interests
CSN Mining Portugal, Unipessoal Lda. (6)	87.52		Sale and commercial representation
Direct interest in joint operations: proportionate consolidation
Itá Energética S.A.	48.75	48.75	Electric power generation
Consórcio da Usina Hidrelétrica de Igarapava	17.92	17.92	Electric power consortium
Direct interest in joint ventures: equity method
MRS Logística S.A.	18.64	18.64	Railroad transportation
Aceros Del Orinoco S.A.	31.82	31.82	Dormant company
CBSI - Companhia Brasileira de Serviços de Infraestrutura	50.00	50.00	Equity interests and product sales and iron ore
Transnordestina Logística S.A.	46.30	49.02	Railroad logistics
Indirect interest in joint ventures: equity method
MRS Logística S.A.	16.30	16.30	Railroad transportation
Direct interest in associates: equity method
Arvedi Metalfer do Brasil S.A.	20.00	20.00	Metallurgy and Equity interests

(*) They are Dormant Companies, therefore they do not appear in the note 8.a, where is disclosed business information under the equity method and classified as available for sale.

· Events in 2017:

(1) On February 6, 2018, the Spanish commercial registry recognized the merger by absorption of the companies by CSN Steel, S.L.U., date from which the companies were considered legally extinct. In addition, before third parties and for the purposes of commercial law, the merger is retroactive to the date of December 28, 2017;

(2) Transfer of 1 share in August 2017;

(3) Company sold to the CSN Mineração and in August 2017 was incorporated by the same subsidiary;

(4) Companies liquidated in July 2017;

(5) New corporate name of Namisa International Minérios SLU, amended in September 2017;

(6) Companies constituted in 2017;

• Exclusive funds 

	Equity Interests (%)
Exclusive funds	12/31/2017	12/31/2016	Core business
Direct interest: full consolidation
Diplic II- Private credit balanced mutual fund	100.00	100.00	Investment fund
Caixa Vértice - Private credit balanced mutual fund	100.00	100.00	Investment fund
VR1 – Private Credit balanced mutual fund	100.00	100.00	Investment fund

In preparing the consolidated financial statements, we have adopted the following consolidation procedures:

·                  Transactions between subsidiaries, associates, joint ventures and joint operations

Unrealized gains on transactions with subsidiaries, joint ventures and associates are eliminated to the extent of CSN’s equity interests in the related entity by the consolidation process. Unrealized losses are eliminated in the same manner as unrealized gains, although only to the extent that there are not indications of impairment. The Company eliminates the effect on profit or loss of transactions carried out with joint ventures and, as a result, reclassifies part of the equity in results of joint ventures to financial costs, cost of sales and income tax and social contribution.

The base date to the financial statements of the subsidiaries and joint ventures is the same as of the Company, and their accounting policies are also in line with the policies adopted by the CSN.

Subsidiaries

Subsidiaries are all entities (including special purpose entities) which financial and operating policies can be conducted by the Company and when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to use its power to affect its returns. The existence and effect of potential voting rights that are actually exercisable or convertible are taken into consideration when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date when the control is transferred to the Company and are deconsolidated from the date when such control ceases.

Joint ventures and joint operations

Joint arrangements are all entities over which the Company has joint control with one or more other parties. The investments in joint arrangements are classified as joint operations or joint ventures depending on the contractual rights and obligations of each investor.

Joint operations are accounted for in the financial statements in order to represent the Company's contractual rights and obligations. Therefore, the assets, liabilities, revenues and expenses related to its interests in joint operations are accounted for individually in the financial statements.

Joint ventures are accounted for under the equity method and are not consolidated.

The Company eliminates the effect on profit or loss of transactions carried out with joint ventures and, as a result, eliminates part of the equity in results of joint ventures to financial costs, cost of sales, net sales and income tax and social contribution.

Associates

Associates are all entities over which the Company has significant influence but not control, generally through a shareholding percentage from 20% up to 50% of the voting rights. Investments in associates are accounted for under the equity method and are initially recognized at cost.

·                  Transactions and non-controlling interests

The Company treats transactions with non-controlling interests as transactions with owners of the Company. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of subsidiary net assets is recorded in shareholders' equity. Gains and losses on disposals to non-controlling interests are also recognized directly in shareholders' equity.

When the Company no longer holds control, any retained interest in the entity is remeasured to its fair value, with the change in the carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest in an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Company had disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

Foreign currencies

2. c) Foreign currencies

i.                  Functional and presentation currency

Items included in the financial statements are related to each one of the Company's subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates (“functional currency”). The consolidated financial statements are presented in Brazilian Reais (R$), which is the Company’s functional currency and the Group’s presentation currency.

ii.                Transactions and balances

Transactions in foreign currencies are translated into the functional currency using the exchange rates in effect at the dates of the transactions or valuations when their values are remeasured. Foreign exchange gains and losses resulting from the settlement of those transactions and from the translation at exchange rates in effect as of December 31, 2017 related to monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, except when they are recognized in shareholders' equity as a result of foreign operation characterized as foreign investment.

The balances of assets and liabilities are translated by exchange rates prevailing at the end of the reporting period. As of December 31, 2017, US$1 is equal to R$3.3080 (R$3.2591 at December 31, 2016) and €1 is equal to R$3.9693 (R$3.4384 at December 31, 2016).

All other foreign exchange gains and losses, including foreign exchange gains and losses related to borrowings and cash and cash equivalents, are presented in the income statement as financial income or costs.

Changes in the fair value of monetary securities denominated in foreign currency, classified as available-for-sale, are segregated into exchange differences related to the amortized cost of the security and other changes in the carrying amount of the security. Exchange differences related to amortized cost are recognized in profit or loss, and other changes in the carrying amount are recognized in shareholders' equity.

Exchange differences on non-monetary financial assets and liabilities classified as measured at fair value through profit or loss are recognized in profit or loss as part of the gain or loss on the fair value. Exchange differences on investments classified as available-for-sale are included in comprehensive income in shareholders' equity.

iii.               Group companies

The results and financial position of all the Group’s entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

·        The assets and liabilities of each balance sheet presented are translated by exchange rate at the end of the reporting period;

·        The income and expenses of each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates at the transaction dates, in which case income and expenses are translated at the rate in effect at the transaction dates);

·        All resulting exchange differences are recognized as a separate component in other comprehensive income; and

·        Gains and losses accumulated in shareholders' equity are included in the income statement when the foreign operation is partially disposed or sold.

On consolidation, exchange differences resulting from the translation of monetary items with characteristics of net investment in foreign operations are recognized in shareholders' equity. When a foreign operation is partly disposed of or sold, exchange differences previously recorded into other comprehensive income are recognized in the income statement as part of the gain or loss on sale.

Cash and cash equivalents

2. d) Cash and cash equivalents

Cash and cash equivalents include cash on hand, in bank accounts and other short-term highly liquid investments redeemable within 90 days from the end of the reporting period, readily convertible into a known amount of cash and subject to an insignificant risk of change in value. Bank certificates of deposit and government securities that do not meet the above criteria are not considered cash equivalents and are classified as financial investments, according to note 4.

Trade receivables

2. e) Trade receivables

Trade receivables are initially recognized at fair value, including the related taxes and expenses. Foreign currency-denominated trade receivables are adjusted at the exchange rate in effect at the end of the reporting period. The allowance for estimated losses on doubtful debts were recognized in an amount considered sufficient to cover any losses. Management’s assessment takes into consideration the customer’s history and financial position, as well as the opinion of their legal counsel regarding the collection of these receivables for recognizing the allowance for estimated losses.

Inventories

2. f) Inventories

Inventories are carried at the lower of cost and net realizable value. Cost is determined using the weighted average cost method on the acquisition of raw materials. The costs of finished goods and work in process comprise raw materials, labor and other direct costs (based on the normal production capacity). Net realizable value represents the estimated selling price in the normal course of business, less estimated costs of completion and costs necessary to make the sale. The allowance for estimated losses on slow-moving or obsolete inventories are recognized when considered necessary.

Stockpiled ore inventories are accounted for as processed when removed from the mine. The cost of finished goods comprises all direct costs necessary to transform stockpiled inventories into finished goods.

Investments

2. g) Investments

Investments in subsidiaries, joint ventures and associates are accounted for under the equity method of accounting and are initially recognized at cost. The gains or losses are recognized in profit or loss as operating income (or expenses). In the case of foreign exchange differences arising on translating foreign investments that have a functional currency different from the Company’s, changes in investments due exclusively to foreign exchange differences, as well as adjustments to pension plans and available-for-sale investments that impact the subsidiaries’ shareholders' equity, are recognized in line item “Cumulative translation adjustments”, in the Company’s shareholders' equity, and are only recognized in profit or loss when the investment is disposed or written off due to impairment loss. Other investments are recognized at cost or fair value.

When necessary, the accounting policies of subsidiaries, joint ventures and associates are changed to ensure consistency with the policies adopted by the Company.

Business combination

2h) Business combination

The acquisition method is used to account for on each business combination conducted by the Company. The payment obligation transferred by acquiring an entity is measured by the fair value of the assets transferred, liabilities incurred and equity instruments issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement, where applicable. Acquisition-related costs are recognized in profit or loss for the year, as incurred. Identifiable assets acquired and liabilities assumed in a business combination are initially measured at their fair values at the acquisition date.

Property, plant and equipment

2. i) Property, plant and equipment

Property, plant and equipment are carried at cost of acquisition, formation or construction, less accumulated depreciation or depletion and any impairment loss. Depreciation is calculated under the straight-line method based on the remaining economic useful economic lives of assets, as mentioned in note 9. The depletion of mines is calculated based on the quantity of ore mined. Land is not depreciated since their useful life is considered indefinite. However, if the tangible assets are mine-specific, that is, used in the mining activity, they are depreciated over the shorter between the normal useful lives of such assets and the useful life of the mine. The Company recognizes in the carrying amount of property, plant and equipment the cost of replacement and consequently reducing the carrying amount of the part that is replaced if it is probable that future economic benefits embodied therein will revert to the Company, and if the cost of the asset can be reliably measured. All other disbursements are expensed as incurred. Borrowing costs related to funds obtained for construction in progress are capitalized until these projects are completed.

If some components of property, plant and equipment have different useful lives, these components are accounted for in separate line items of property, plant and equipment.

Gains and losses on disposal are determined by comparing the sale value less the residual value and are recognized in ‘Other operating income (expenses)’.

Exploration expenditures are recognized as expenses until the viability of mining activities is established, after this period the subsequent development costs are capitalized. Exploration and valuation expenditures include:

·        Research and analysis of historical data related to area exploration;

·        Topographic, geological, geochemical and geophysical studies;

·        Determine the mineral asset’s volume and quality/grade;

·        Examine and test the extraction processes and methods;

·        Topographic surveys of transportation and infrastructure needs;

·        Market and financial studies;

The development costs from new mineral deposits or from capacity expansion in mine operations are capitalized and amortized using the produced (extracted) units method based on the probable and proven ore quantities. The development stage includes:

·        Drillings to define the ore body;

·        Access and draining plans;

·        Advance removal of overburden (top soil and waste material removed prior to initial mining of the ore body) and waste material (non-economic material that is intermingled with the ore body).

Stripping costs (the costs associated with the removal of overburden and other waste materials) incurred during the development of a mine, before production commences, they are capitalized as part of the depreciable cost of developing the property. Such costs are subsequently amortized over the useful life of the mine based on proven and probable reserves.

Stripping costs in the production phase are included in the cost of the inventory produced, except when a specific extraction campaign is made to access deeper deposits of where ore body is located. In these cases, costs are capitalized and taken to noncurrent assets when the mineral ore deposit is extracted and are amortized over the useful life of the ore body.

The Company holds spare parts that will be used to replace parts of property, plant and equipment and that used to increase the asset’s useful life when it exceeds 12 months. These spare parts are classified in property, plant and equipment and not in inventories.

Intangible assets

2. j) Intangible assets

Intangible assets comprise assets acquired from third parties, including through business combinations.

These assets are recognized at cost of acquisition or formation, less amortization calculated on a straight-line basis method based on the estimated periods of exploration or recovery

Mineral rights acquired are classified in line item “other assets” in intangible assets.

Intangible assets with indefinite useful lives and goodwill based on expected future profitability are not amortized.

· Goodwill

Goodwill represents the positive difference between the amount paid and/or payable for the acquisition of a business and the net fair values of the acquiree´s assets and liabilities. Goodwill on acquisitions from business combination is recognized as intangible assets in the consolidated financial statements. The gain from a bargain purchase is recognized directly in the statement of income at the acquisition date. Goodwill is annually tested for impairment. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of a Cash-Generating Unit (CGU) include the carrying amount of goodwill related to the CGU sold.

Goodwill is allocated to CGUs for impairment testing purposes. The allocation is made to CGUs of CGUs that are expected to benefit from the business combination in which the goodwill arose, and recalling that unit is not greater than the operating segment.

· Software

Software licenses purchased are capitalized based on the costs incurred to purchase the software and make it ready for use. These costs are amortized on a straight-line basis over the estimated useful lives from one to five years.

Impairment of non-financial assets

2. k) Impairment of non-financial assets

Assets with infinite useful lives, such as goodwill, are not subject to amortization and are annually tested for impairment. Assets subject to amortization and/or depreciation, such as property, plant and equipment, are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment loss is recognized by determining an asset´s recoverable amount. The recoverable amount is the higher of the fair value of an asset less costs to sell and its value in use. For impairment testing purposes, assets are grouped at their lowest levels for which there are separately identifiable cash flows (Cash Generating Units, or CGUs). Non-financial assets, except for goodwill, are subsequently reviewed for possible reversal of the impairment at the reporting date.

Employee benefits

2. l) Employee benefits

i. Employee benefits

Defined contribution plans

A defined contribution plan is as a post-employment benefit plan whereby an entity pays fixed contributions to a separate entity (pension fund) and will not have any legal or constructive obligation to pay additional amounts. Obligations for contributions to defined contribution pension plans are recognized as employee benefit expenses in the periods during which services are provided by employees. Contributions paid in advance are recognized for an asset since it is agreed that either cash reimbursement or future reduction on payables will flow back to CSN. Contributions to a defined contribution plan that is expected to mature twelve (12) months after the end of the period in which the employee provides services are discounted to their present values.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation regarding defined pension benefit plans is calculated individually for each plan by estimating the value of the future benefit that the employees accrue as return for services provided in the current period and in prior periods; such benefit is discounted to its present value. The discount rate is the yield presented at the end of the reporting period for top line debt securities whose maturity dates approximate the terms and conditions of the Company’s obligations and which are denominated in the same currency as the one in which it is expected that the benefits will be paid. The calculation is made annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit for the Company, the asset to be recognized is limited to the total amount of any unrecognized costs of past services and the present value of the economic benefits available in the form of future plan reimbursements or reduction in future contributions to the plan. The present value of economic benefits is calculated taking into account the funding requirements applicable to the Company’s plans. An economic benefit is available to the Company if it is realizable during the life of the plan or upon settlement of the plan’s liabilities.

The Company and some of its subsidiaries offered a postretirement healthcare benefit to its employees. The right to these benefits is usually contingent to their remaining in employment until the retirement age and the completion of the minimum length of service. The expected costs of these benefits are accumulated during the employment period, and are calculated using the same accounting method used for defined benefit pension plans. These obligations are annually valued by qualified independent actuaries.

When the benefits of a plan are increased, the portion of the increased benefit related to past services of employees is recognized in profit or loss until the benefits become vested. When benefits became vesting rights, all actuarial gains or losses are immediately recognized in profit or loss.

The Company recognizes all actuarial gains and losses resulting from defined benefit plans immediately in other comprehensive income. If the plan is extinguished, actuarial gains and losses are recognized in profit or loss.

ii. Profit sharing and bonus

Employee profit sharing and executives’ variable compensation are linked to the achievement of operating and financial targets. The Company recognizes a liability and an expense substantially allocated to production cost and, where applicable, to general and administrative expenses when such goals are met.

Provisions

2. m) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation and it has reliable cost estimation.

The amount recognized as a provision is the best value estimation required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). Success fees are accrued to the extent that they make it probable that disbursements will occur. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is probable that reimbursement will be received and that the amount of the receivable can be measured reliably.

Concessions

2. n) Concessions

The Company has governmental concessions to provide the following types of services: railway and port transportation managed by Company´s subsidiaries and joint-ventures. The concessions included in the consolidated financial statements are related to the rail network in the Northeast area, managed by the subsidiary FTL, the container terminal in Itaguaí, managed by the subsidiary Sepetiba Tecon and the port terminal TECAR for exporting ore and importing coal, which is managed by the subsidiary CSN Mineração.

The Company´s concession contracts are not within the scope of the international interpretative standard IFRIC 12, considering that the grantor (refers to the government) has effectively no control over what, to whom and at what price the services will be provided by the dealer (refers to the private part) to the customers. In essence, all concession contracts has operating leasing characteristics. Therefore, the accounting should follow the accounting rules applicable to leases. Our concession agreements provide for the use of a specific asset for an agreed period of time, but without any transfer of ownership to the Company or option to buy these assets after the completion of these contracts.

Payments made under operating leases are recognized in the income statement on a straight line basis over the period of the contracts.

There are assets related to our concessions which are subject to reversion to the grantor at the end of the concession agreement.

The residual carrying amounts of these assets on December 31, 2017 are listed below with an indication of their classification in our financial statements:

Concession	Net book value (R$)		Classification in balance sheet
Sepetiba Tecon S.A. (TECON)	313	million	Fixed assets
			intangible: Software
Tecar	1,528	million	Fixed assets
			intangible: Software
Ferrovia Transnordestina Logística S.A. (FTL)	230	million	Fixed assets
Transnordestina Logística S.A. (TLSA)	7,934	million (1)	Investment
MRS Logística S.A. (MRS)	3,428	million (2)	Investment

(1)       The amount of fixed and intangible assets is recognized in TLSA’s financial statements. We recognize our interest in the net assets of TLSA under the equity method and our investment balance in TLSA as of December 31, 2017 was R$1,473,298.

(2)       The amount of fixed and intangible assets is recognized in MRS’s financial statements. We recognize our interest in the net assets of MRS by the equity method and our investment balance consolidated in MRS as of December 31, 2017 was R$ 1,325,032.

Share capital

2. o) Share capital

Common shares are classified in shareholders' equity.

Incremental costs directly attributable to the issue of new shares or options are shown in shareholders' equity as a deduction to the amount received, net of taxes.

When any Company of the Group buys Company shares (treasury shares), the amount paid, including any directly additional costs (net of income tax), is deducted from shareholders' equity attributable to owners of the Company until the shares are canceled or sold. When these shares are subsequently sold, any amount received, net of any directly attributable additional transaction costs and the related income tax and social contribution effects, is included in shareholders' equity attributable to owners of the Company.

Revenue recognition

2. p) Revenue recognition

Operating revenue from the sale of goods in the normal course of business is measured at the fair value of the receivables. Revenue is recognized when there is convincing evidence that the most significant risks and rewards of ownership of goods have been transferred to the buyer, it is probable that future economic benefits will flow to the entity, the associated costs and possible return of goods can be reliably estimated, there is no continued involvement with the goods sold, and the amount of the operating revenue can be reliably measured. If it is probable that discounts will be granted and the value thereof can be reliably measured, then the discount is recognized as a reduction of the operating revenue as sales are recognized. Revenue from services provided is recognized as it is realized.

The appropriate timing for transfer of risks and rewards varies depending on the individual terms and conditions of the sales contract. For international sales, this timing depends on the type of term of the contract term.

Financial income and financial expenses

2. q) Financial income and financial expenses

Financial income includes interest income from funds invested (except available-for-sale financial assets), dividend income not accounted for under the equity method, gains on disposal of available-for-sale financial assets, changes in the fair value of financial assets measured at fair value through profit or loss, and gains on derivative instruments that are recognized in profit or loss. Interest income is recognized in profit or loss under the effective interest method. Dividend income is recognized in profit or loss when the Company’s right to receive payment has been established. Distributions received from investees accounted for under the equity method reduce the investment value.

Financial expenses comprise interest expenses on borrowings, losses on the fair value of financial instruments measured at fair value through profit or loss, impairment losses recognized in financial assets, and losses on derivative instruments that are recognized in profit or loss. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are measured through profit or loss under the effective interest method.

Foreign exchange gains and losses are reported on a net basis.

Income tax and social contribution

2. r) Income tax and social contribution

Current income tax and social contribution are calculated based on the tax laws enacted by the end of the reporting period, including in the countries where the Group entities operate and generate taxable profit. Management periodically assesses the positions taken in the tax calculations with respect to situations where applicable tax regulations are open to interpretations. The Group recognizes provisions where appropriate, based on the estimated payments to tax authorities. The income tax and social contribution expense comprises current and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they are related to business combinations or items recognized directly in shareholders' equity.

Current tax is the expected tax payable or receivable on taxable profit or loss for the year at tax rates that have been enacted by the end of the reporting period and any adjustment to taxes payable in relation to prior years.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax is not recognized for the following temporary differences: initial recognition of assets and liabilities in a transaction that is not a business combination and does not affect either the accounting or taxable profit or loss, and differences associated with investments in subsidiaries and joint ventures when it is probable that they will not reverse in the foreseeable future.

Moreover, a deferred tax liability is not recognized for taxable temporary differences resulting from the initial recognition of goodwill. The deferred tax is measured at the rates that are expected to be applied on temporary differences when they reverse, based on the laws enacted by the end of the reporting period.

Current income tax and social contribution are carried at their net amounts by the taxpayer, in liabilities when there are amounts payable or in assets when prepaid amounts exceed the total amount due at the end of the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on the same entity subject to taxation.

A deferred income tax and social contribution asset is recognized for all tax losses, tax credits, and deductible temporary differences to the extent that it is probable that taxable profits will be available against which those tax losses, tax credits, and deductible temporary differences can be utilized. Annually, the Company reviews and verifies the existence of future taxable income and a provision for loss is recognized when the realization of these credits is not likely.

Earnings/(Loss) per share

2. s) Earnings/(Loss) per share

Basic earnings/loss per share are calculated by means of the profit/loss for the year attributable to owners of the Group and the weighted average number of common shares outstanding in the related period. Diluted earnings/loss per share are calculated by means of the average number of shares outstanding, adjusted by instruments potentially convertible into shares, with diluting effect, in the reported periods. The Group does not have any instruments potentially convertible into shares and, accordingly, diluted earnings/loss per share are equal to basic earnings/loss per share.

Environmental and restoration costs

2. t) Environmental and restoration costs

The Company recognizes a provision for the recovery costs and fines when a loss is probable and the amounts of the related costs can be reliably measured. Generally, the period when the provision for recovery is recognized coincides with the end of a feasibility study or the commitment to adopt a formal action plan.

Expenses related to compliance with environmental regulations are charged to profit or loss or capitalized, as appropriate. Capitalization is considered appropriate when the expenses refer to items that will continue to benefit the Group and that are basically related to the acquisition and installation of equipment to control and/or prevent pollution.

The Company make the provisions for asset retirement obligations which refer to estimated costs for decommissioning, retirement or restoration of areas upon the termination of activities of our mining resources. The initial measurement is recognized as a liability discounted to present value and subsequently through increase in expenses over time. The asset retirement cost equivalent to the initial liability is capitalized as part of the carrying amount of the asset and is depreciated over the useful life of the asset.

Research and development

2. u) Research and development

Research expenditures are recognized as expenses when incurred. Expenditures on project developments (related to the design and testing stages of new or improved products) are recognized as intangible assets when it is probable that projects will be successful, based on their commercial and technological feasibility, and only when the cost can be reliably measured. When capitalized, development expenditures are amortized from the start of a product commercial production, on a straight-line basis and over the period of the expected benefit.

Financial instruments

2. v) Financial instruments

i)     Financial assets

Financial assets are classified into the following categories: measured at fair value through profit or loss, loans and receivables, held-to-maturity and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at the time of initial recognition.

· Recognition and measurement

The Company classifies, at initial recognition, its financial assets into four categories: i) fair value through profit or loss, ii) loans and receivables, iii) held-to-maturity assets, and iv) available-for-sale financial assets. Assets are recognized at fair value, plus (with the exception of assets recognized at fair value through profit or loss) transaction costs that are directly attributable to the acquisition or issuance of financial asset.

In the subsequent measurement, loans and receivables are carried at amortized cost using the effective interest method.

Gains or losses resulting from changes in the fair value of financial assets measured at fair value through profit or loss are presented in the income statement under “financial income” in the period in which they arise. Dividend income from financial assets at fair value through profit or loss is recognized in the income statement as part of other financial income when the Company’s right to receive the dividends has been established.

The changes in the fair value of available-for-sale financial assets are recognized as follows: (i) the effects of foreign exchange differences and the changes in the fair value of the investment in the investee’s capital are recognized directly in the Company’s shareholders’ equity, in “Other comprehensive income” and; (ii) the effects of foreign exchange differences and the changes in the option’s fair value are recognized in the income statement for the year.

Interest on available-for-sale securities, calculated under the effective interest method, is recognized in the income statement as part of other income. Dividends from available-for-sale equity instruments, such as shares, are recognized in the income statement as part of other financial income when the Company’s right to receive payments has been established.

The fair values of publicly quoted investments are based on current purchase prices. If the market for a financial asset (and for instruments not listed on a stock exchange) is not active, the Company establishes the fair value by using valuation techniques. These techniques include the use of recent transactions contracted with third parties, reference to other instruments that are substantially similar, analysis of discounted cash flows, and option pricing models that make maximum use of market inputs and relies as little as possible on entity-specific inputs.

Regular purchases and sales of financial assets are recognized at the trading date on which the Company undertakes to buy or sell the asset.

· Derecognized

Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred, in the latter case, provided that the Company has transferred significantly all risks and rewards of ownership.

· Financial assets measured at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets held for active and frequent trading. Derivatives are also categorized as held for trading and, accordingly, are classified in this category unless they have been designed as cash flow hedging instruments. Assets in this category are classified in current assets.

· Loans and receivables

This category includes loans and receivables that are non-derivative financial assets with fixed or determinable payments not quoted in an active market. They are included in current assets, except those with maturity of more than 12 months after the end of the reporting period (which are classified as non-current assets). Loans and receivables include loans to associates, trade receivables, other receivables and cash and cash equivalents, except short-term investments. Cash and cash equivalents are recognized at fair value. Loans and receivables are carried at amortized cost using the effective interest method.

· Held-to-maturity assets

These are basically financial assets acquired with the positive intent and ability to hold to maturity. Held-to-maturity investments are initially recognized at their value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method, less any impairment loss.

· Available-for-sale financial assets

These are non-derivative financial assets, designated as available-for-sale, that are not classified in any other category established. They are included in non-current assets when they are strategic investments for the Company, unless Management intends to dispose of the investment within 12 months from the end of the reporting period. Available-for-sale financial assets are recognized at fair value.

ii)                Impairment of financial assets

The Company evaluates at each reporting period whether there is an evidence of impairment in a financial asset or a group of financial assets. This evaluation should consider objective evidence of the occurrence of events that may impact the estimated cash flows of an individual financial asset or group of financial assets.

· Assets measured at amortized cost

A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there are evidences of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”), such loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets and the future cash flow estimation can be reliably calculated.

The criteria used by CSN to determine whether there are evidences of impairment loss includes:

· significant financial weakness related to the issuer or counterparty;

· a breach of contract, such as default or delinquency at interest or principal payments;

· the issuer, for economic or legal reasons relating to the borrower’s financial weakness, grants to the borrower a concession that the lender would not otherwise consider;

· it becomes probable that the borrower will incur in bankruptcy or other financial reorganization;

· the disappearance of an active market for the related financial asset because of financial weakness; or

· observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of such assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including:

- Adverse changes in the payment status of borrowers in the portfolio;

- National or local economic conditions that correlate with defaults on the assets in the portfolio.

The amount of the loss is measured by the difference between the carrying amount of the asset and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the original effective interest rate of the financial asset. The carrying amount of the asset is reduced and the amount of the loss is recognized in the income statement. If a loan or held-to-maturity investment has a variable interest rate, the discount rate to measure an impairment loss is the current effective interest rate determined pursuant to the contract. As a practical expedient, the Company may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor’s credit rating), the previously recognized impairment loss is reversed and recognized in the consolidated income statement.

· Assets classified as available-for-sale

In the case of equity securities classified as available-for-sale, a significant or prolonged decline at the fair value of an investment in an equity instrument below of its cost is also an evidence of impairment. Determining what is considered a “significant” or “prolonged” decline requires judgment. For this judgment we assess, among other factors, the historical changes in the equity prices, the duration and proportion in which the fair value of the investment is lower than its cost as well as the financial health and short-term business prospects for the investee, including factors such as: industry and segment performance, changes in technology and operating/financial cash flows. If any of the impairment evidences is observed for available-for-sale financial assets, the cumulative loss—measured as the difference between the acquisition cost and the current fair value, less any impairment loss on the financial asset previously recorded in profit or loss—is reclassified from equity to profit or loss. Impairment losses recognized in the income statement as available-for-sale instruments are not reversed.

CSN tested for impairment its available-for-sale investment in Usiminas shares, see note 12 – Financial Instruments.

iii)               Financial liabilities

Financial liabilities are classified under the following categories ‘’measured at fair value through profit or loss’’ and ‘’other financial liabilities’’. Management determines the classification of its financial liabilities at the time of initial recognition.

· Financial liabilities measured at fair value through profit or loss

Financial liabilities classified in category fair value through profit or loss are financial liabilities held for trading or those designated at the time of initial recognition.

Derivatives are also classified as trading securities, and thereby are classified so, unless they have been designated as effective hedging instruments.

Gains and losses on financial liabilities classified at fair value through profit or loss are recognized in profit or loss

· Other financial liabilities

Other financial liabilities are measured at amortized cost using the effective interest method. The Company holds the following non-derivative financial liabilities: borrowings, financing and debentures as well as trade payables.

Write-off of financial liabilities

Financial liabilities are written off only when the obligations are terminated and canceled or when they mature. The difference between the carrying amount of the financial liability written off and the consideration paid and payable is recognized in profit or loss.

· Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to set off the recognized amounts as well as the intention to either settle them on a net basis or to realize the asset and settle the liability simultaneously.

iv)               Derivative instruments and hedging activities

· Derivatives measured at fair value through profit or loss

Derivatives are initially recognized at fair value on the date when a derivative contract is entered, thereafter they are subsequently measured at their fair value and any changes are recognized as “Financial income (costs)” in the income statement.

· Cash flow Hedge

The Company adopts hedge accounting and designates certain financial liabilities as a hedging instrument of a foreign exchange risk associated to the cash flows from forecast, highly probable exports (cash flow hedges).

At the inception of the transaction, the Company documents the relationships between the hedging instruments and the hedged items, as well as its risk management objectives and strategy for undertaking hedging transactions. The Company also documents its assessment, both at the inception of the hedge and on an ongoing basis, of whether the hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items.

The effective portion of the changes in the fair value of financial liabilities designated and qualifying as cash flow hedge is recognized on equity, in line item "Hedge accounting”. Any gain or loss related to the ineffective portion is recognized immediately in other operational income(expenses), if applicable.

The amounts accumulated in equity are reclassified to the income statement in the periods when the forecast exports affect profit or loss.

When a hedging instrument expires, is settled in advance or the hedging relationship no longer meets the hedge accounting criteria, or even when Management decides to discontinue hedge accounting, all cumulative gains or losses recorded in equity at the time remain recognized in equity and, from that moment, the exchange variations are recorded in the financial income (expenses). When the forecast transaction is completed, the gain or loss is reclassified to profit or loss. When a forecast transaction is no longer expected to take place, the cumulative gain or loss previously recognized in shareholders’ equity is immediately transferred to the income statement, in line item “Other operating income (expenses)”.

The movements in the hedge amounts designated as exporting cash flow hedges are stated in note 12 – Financial instruments.

· Net investment hedge

For net investment hedge, the Company designates part of its financial liabilities as hedging instruments of its overseas investments with functional currencies other than the Group’s functional currency, according to IAS39. Such relationship occurs since the financial liabilities are related to the investments in the amounts required for the effective relationship.

At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking out hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values of the hedged item.

The effective portion of changes in the fair value of financial liabilities that are designated and qualify as a net investment hedge is recognized in equity in line item “Hedge Accounting”. The gain or loss relating to the ineffective portion is recognized in financial income (costs), when applicable. If at some point of the hedging relationship the balance of the debt is higher than the balance of the investment, the exchange variation on the excess debt will be reclassified to the statement of profit or loss as Other operating income/(expenses) (ineffectiveness of the hedge).

The amounts accumulated in equity will be realized in the statement of profit or loss upon disposal or partial disposal of the foreign operation.

The changes in the amounts of hedge denominated as Net investment hedge are shown in note 12 – Financial Instruments.

Segment information

2. w) Segment information

An operating segment is a component of the Group committed to the business activities from which it can obtain revenues and incur expenses, including revenues and expenses related to transactions with any other components of the Group. All the operating results of operating segments are reviewed regularly by the Executive Officers of CSN to enable decisions regarding resources to be allocated to the segment and assessment of its performance. The Company maintains distinct financial information for the distinct segments.

Government grants

2. x) Government grants

Government grants are not recognized until there is reasonable assurance that the Company will comply to the conditions attaching to them and assurance that the grants will be received, so then they will be recognized in profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants are intended to compensate.

The Company has state tax incentives in the North and Northeast regions, which are recognized in profit or loss as a reduction of the corresponding costs, expenses and taxes.

Noncurrent assets held for sale and discontinued operations

2. y) Noncurrent assets held for sale and discontinued operations

Noncurrent assets and groups of assets are classified as held for sale if their carrying amount is recovered mainly through a sale transaction and not through continued use.

The criteria for classification of items held for sale are considered to be met only when the sale is highly probable and the asset or group of assets is available for immediate sale.

Assets and liabilities classified as held for sale are presented separately as current items in the balance sheet.

Classification as a discontinued operation occurs through disposal, or when the transaction meets the criteria to be classified as held for sale if this occurs earlier. A discontinued operation is a component of a Group business which comprises operations and cash flows that may be clearly distinct from the rest of the Group and represent a separate business line or geographical area of ​​operations.

The result of discontinued operations is presented in a single amount in the income statement, including the total income after income tax of these operations, less any impairment loss.

New standards and interpretations issued and not yet adopted

2. z) New standards and interpretations issued and not yet adopted

The following standards and interpretations have been issued and will be mandatory for subsequent accounting periods and were not early adopted by the Group for the year ended December 31, 2017:

Standard	Main items introduced by the standard	Effective date
IFRS 9 – Financial Instruments	The standard retains but simplifies the combined measurement model and establishes two main measurement categories of financial assets: amortized cost and fair value. The classification basis depends on the entity business model and the characteristics of the financial asset’s contractual cash flow. IFRS 9 retains most of IAS 39 requirements for financial liabilities. The main change refers to those cases where the fair value of the financial liabilities must be segregated so that the fair value portion related to the entities credit risk is recognized in “other comprehensive income” and not in profit or loss for the period. The standard introduces an expected credit loss model for the measurement of the impairment of financial assets. However, it is no longer necessary for a credit event to have occurred before a credit loss is recognized. Finally, IFRS 9 introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures. The requirements for derecognition of financial assets and liabilities under IFRS 9 are carried forward from IAS 39.	January 1, 2018
IFRS15 – Revenue from Contracts with Customers	This new standard introduces the principles that an entity will apply to determine the revenue measurement and when such revenue shall be recognized. IFRS 15 replaces IAS 11 – Construction Contracts, IAS 18 - Revenue and related interpretations.	January 1, 2018
IFRS16 - Leases	This new standard defines the principles for recognition, measurement, presentation and disclosure of leases and introduces a single model for the accounting of leases in the balance sheet for the lessees. A lessee recognizes a right-of-use asset that represents his obligation to make lease payments. Optional exemptions are available for short- term leases and low-value items. For lessors, accounting treatment remains practically the same, with the classification of leases as operating leases or financial leases, and accounting for these two types of lease differently. IFRS 16 replaces existing lease standards, including IAS 17 – Leasing Operations and IFRIC 4, SIC 5 and SIC 27 – Complementary Aspects of Leasing Operations.	January 1, 2019
IFRIC 22 – Foreign Currency Transaction and Advance Consideration	The Interpretation covers foreign currency transactions (or part of them) when an entity recognizes a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognizes the related asset, expense or income (or part of it).	January 1, 2018
IFRIC 23 – Uncertainty over Income Tax Treatments	Can be unclear how tax law applies to a particular transaction or circumstance. This interpretation complements the IAS 12 – Income Tax, clarify how to reflect the effects of uncertainty over income tax treatments.	January 1, 2019

The following information presents the possible impacts on the adoption of IFRS 9 and IFRS 15 which were available at the time of the preparation of these financial statements. In this way, these preliminary assessments and their potential impacts are subject to change until the initial adoption be disclosed in the 2018 financial statements.

-         IFRS 9 – Financial Instruments

Classification and measurement of financial assets: Management evaluated the classification and measurement of financial assets offered by the new pronouncement based on its diagnosis, business model, expectations of the company’s cash flow and the financial assets management model. In this way, was concluded that the investment in Usiminas shares would be appropriately classified in the category of "fair value through profit or loss" and that the loans and receivables would be classified in the category of measured at "amortized cost".

In the classification of the category of "fair value through profit or loss", the gains or losses arising from the variation of the quotation of the shares are recorded directly in the statement of income at the time of adoption and throughout all future periods. On the other hand, since it is an initial adoption, the Company evaluated the possible impacts related to the investment in Usiminas shares and the gain of R$1.5 billion previously recognized and accumulated in Other comprehensive income was reclassified to “Other operating income” in the statement of income on January 1st, 2018. , arising from the recording of the accumulated balance currently recognized in other comprehensive income.

-         IFRS 15 - Revenue from Contracts with Customers

The Company's Management evaluated all stages of the new standard for the recognition of revenue from contracts with customers. Based on this analysis, the Company did not identify material measurement impacts on the application of this standard.

The observed impacts are related to the review of internal procedures, with the objective to ensure that the new contracts with clients will be properly evaluated and accounted in accordance with the principles of the new standard.

-         IFRS 16 – Leases

During 2018, the Company will evaluate, in the main contracts, the effects of applying the new standard.

The Company does not expect material impacts arising from the application of the new standard.

-         IFRIC 22 - Foreign Currency Transaction and Advance Consideration

For IFRIC 22, the Company will evaluate the effects of applying the new interpretation during 2018, in its operations in foreign currency.

-IFRIC 23 - Uncertainty over Income Tax Treatments

For IFRIC 23, during 2018 the Company will study this interpretation to assets how it applies to the Brazilian tax environment.

The Company does not expect material impacts arising from the application of the interpretation.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2017

Summary Of Significant Accounting Policies Tables

Subsidiaries, joint ventures and joint operations

The consolidated financial statements for the years ended December 31, 2017 and 2016 include the following direct and indirect subsidiaries, joint ventures and joint operations, as well as the exclusive funds, as follows:

	Equity interests (%)
Companies	12/31/2017	12/31/2016	Core business
Direct interest in subsidiaries: full consolidation
CSN Islands VII Corp.	100.00	100.00	Financial transactions
CSN Islands XI Corp.	100.00	100.00	Financial transactions
CSN Islands XII Corp.	100.00	100.00	Financial transactions
CSN Minerals S.L.U. (1)	100.00	100.00	Equity interests
CSN Export Europe, S.L.U. (1)	100.00	100.00	Financial transactions and Equity interests
CSN Metals S.L.U. (1)	100.00	100.00	Equity interests and Financial transactions
CSN Americas S.L.U. (1)	100.00	100.00	Equity interests and Financial transactions
CSN Steel S.L.U.	100.00	100.00	Equity interests and Financial transactions
TdBB S.A (*)	100.00	100.00	Equity interests
Sepetiba Tecon S.A.	99.99	99.99	Port services
Minérios Nacional  S.A.	99.99	99.99	Mining and Equity interests
Companhia Florestal do Brasil	99.99	99.99	Reforestation
Estanho de Rondônia S.A.	99.99	99.99	Tin Mining
Companhia Metalúrgica Prada	99.99	99.99	Manufacture of containers and distribution of steel products
CSN Gestão de Recursos Financeiros Ltda. (*)	99.99	99.99	Management of funds and securities portfolio
CSN Mineração S.A.	87.52	87.52	Mining and Equity interests
CSN Energia S.A. (2)	99.99	100.00	Sale of electric power
FTL - Ferrovia Transnordestina Logística S.A.	90.78	90.78	Railroad logistics
Nordeste Logística S.A.	99.99	99.99	Port services
CGPAR - Construção Pesada S.A. (3)	-	100.00	Mining support services and Equity interests
Indirect interest in subsidiaries: full consolidation
Companhia Siderúrgica Nacional LLC	100.00	100.00	Steel
CSN Europe Lda.(4)	-	100.00	Financial transactions, product sales and Equity interests
CSN Ibéria Lda. (4)	-	100.00	Financial transactions, product sales and Equity interests
Lusosider Projectos Siderúrgicos S.A.	99.94	99.94	Equity interests and product sales
Lusosider Aços Planos, S. A.	99.99	99.99	Steel and Equity interests
CSN Resources S.A.	100.00	100.00	Financial transactions and Equity interests
Companhia Brasileira de Latas (2)	99.99	100.00	Sale of cans and containers in general and Equity interests
Companhia de Embalagens Metálicas MMSA	99.67	99.67	Production and sale of cans and related activities
Companhia de Embalagens Metálicas - MTM	99.67	99.67	Production and sale of cans and related activities
CSN Steel Holdings 1, S.L.U.	100.00	100.00	Financial transactions, product sales and Equity interests
CSN Productos Siderúrgicos S.L.	100.00	100.00	Financial transactions, product sales and Equity interests
Stalhwerk Thüringen GmbH	100.00	100.00	Production and sale of long steel and related activities
CSN Steel Sections UK Limited (*)	100.00	100.00	Sale of long steel
CSN Steel Sections Polska Sp.Z.o.o	100.00	100.00	Financial transactions, product sales and Equity interests
CSN Asia Limited	100.00	100.00	Commercial representation
CSN Mining Holding, S.L  (5)	87.52	87.52	Financial transactions, product sales and Equity interests
CSN Mining GmbH	87.52	87.52	Financial transactions, product sales and Equity interests
CSN Mining Asia Limited	87.52	87.52	Commercial representation
Aceros México CSN	100.00	100.00	Commercial representation,sale of steel and related activity
Lusosider Ibérica S.A. (6)	99.94		Steel, commercial and industrial activities and equity interests
CSN Mining Portugal, Unipessoal Lda. (6)	87.52		Sale and commercial representation
Direct interest in joint operations: proportionate consolidation
Itá Energética S.A.	48.75	48.75	Electric power generation
Consórcio da Usina Hidrelétrica de Igarapava	17.92	17.92	Electric power consortium
Direct interest in joint ventures: equity method
MRS Logística S.A.	18.64	18.64	Railroad transportation
Aceros Del Orinoco S.A.	31.82	31.82	Dormant company
CBSI - Companhia Brasileira de Serviços de Infraestrutura	50.00	50.00	Equity interests and product sales and iron ore
Transnordestina Logística S.A.	46.30	49.02	Railroad logistics
Indirect interest in joint ventures: equity method
MRS Logística S.A.	16.30	16.30	Railroad transportation
Direct interest in associates: equity method
Arvedi Metalfer do Brasil S.A.	20.00	20.00	Metallurgy and Equity interests

(*) They are Dormant Companies, therefore they do not appear in the note 8.a, where is disclosed business information under the equity method and classified as available for sale.

Exclusive funds

	Equity Interests (%)
Exclusive funds	12/31/2017	12/31/2016	Core business
Direct interest: full consolidation
Diplic II- Private credit balanced mutual fund	100.00	100.00	Investment fund
Caixa Vértice - Private credit balanced mutual fund	100.00	100.00	Investment fund
VR1 – Private Credit balanced mutual fund	100.00	100.00	Investment fund

Concessions

The residual carrying amounts of these assets on December 31, 2017 are listed below with an indication of their classification in our financial statements:

Concession	Net book value (R$)		Classification in balance sheet
Sepetiba Tecon S.A. (TECON)	313	million	Fixed assets
			intangible: Software
Tecar	1,528	million	Fixed assets
			intangible: Software
Ferrovia Transnordestina Logística S.A. (FTL)	230	million	Fixed assets
Transnordestina Logística S.A. (TLSA)	7,934	million (1)	Investment
MRS Logística S.A. (MRS)	3,428	million (2)	Investment

(1)       The amount of fixed and intangible assets is recognized in TLSA’s financial statements. We recognize our interest in the net assets of TLSA under the equity method and our investment balance in TLSA as of December 31, 2017 was R$1,473,298.

(2)       The amount of fixed and intangible assets is recognized in MRS’s financial statements. We recognize our interest in the net assets of MRS by the equity method and our investment balance consolidated in MRS as of December 31, 2017 was R$ 1,325,032.

New standards and interpretations issued and not yet adopted

The following standards and interpretations have been issued and will be mandatory for subsequent accounting periods and were not early adopted by the Group for the year ended December 31, 2017:

Standard	Main items introduced by the standard	Effective date
IFRS 9 – Financial Instruments	The standard retains but simplifies the combined measurement model and establishes two main measurement categories of financial assets: amortized cost and fair value. The classification basis depends on the entity business model and the characteristics of the financial asset’s contractual cash flow. IFRS 9 retains most of IAS 39 requirements for financial liabilities. The main change refers to those cases where the fair value of the financial liabilities must be segregated so that the fair value portion related to the entities credit risk is recognized in “other comprehensive income” and not in profit or loss for the period. The standard introduces an expected credit loss model for the measurement of the impairment of financial assets. However, it is no longer necessary for a credit event to have occurred before a credit loss is recognized. Finally, IFRS 9 introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures. The requirements for derecognition of financial assets and liabilities under IFRS 9 are carried forward from IAS 39.	January 1, 2018
IFRS15 – Revenue from Contracts with Customers	This new standard introduces the principles that an entity will apply to determine the revenue measurement and when such revenue shall be recognized. IFRS 15 replaces IAS 11 – Construction Contracts, IAS 18 - Revenue and related interpretations.	January 1, 2018
IFRS16 - Leases	This new standard defines the principles for recognition, measurement, presentation and disclosure of leases and introduces a single model for the accounting of leases in the balance sheet for the lessees. A lessee recognizes a right-of-use asset that represents his obligation to make lease payments. Optional exemptions are available for short- term leases and low-value items. For lessors, accounting treatment remains practically the same, with the classification of leases as operating leases or financial leases, and accounting for these two types of lease differently. IFRS 16 replaces existing lease standards, including IAS 17 – Leasing Operations and IFRIC 4, SIC 5 and SIC 27 – Complementary Aspects of Leasing Operations.	January 1, 2019
IFRIC 22 – Foreign Currency Transaction and Advance Consideration	The Interpretation covers foreign currency transactions (or part of them) when an entity recognizes a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognizes the related asset, expense or income (or part of it).	January 1, 2018
IFRIC 23 – Uncertainty over Income Tax Treatments	Can be unclear how tax law applies to a particular transaction or circumstance. This interpretation complements the IAS 12 – Income Tax, clarify how to reflect the effects of uncertainty over income tax treatments.	January 1, 2019

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3. CASH AND CASH EQUIVALENTS (Tables)

12 Months Ended

Dec. 31, 2017

Cash And Cash Equivalents Tables

Cash and cash equivalents

		Consolidated
	12/31/2017	12/31/2016
Current
Cash and cash equivalents
Cash and banks	193,702	502,480
Short-term investments
In Brazil:
Government securities	12,100	17,929
Private securities	644,525	1,390,707
	656,625	1,408,636
Abroad:
Time deposits	2,561,245	2,960,046
Total short-term investments	3,217,870	4,368,682
Cash and cash equivalents	3,411,572	4,871,162

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4. FINANCIAL INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Financial Investments Tables

FINANCIAL INVESTMENTS

		Consolidated
	12/31/2017	12/31/2016
CDB - Bank Certificate of Deposit (1)	716,218	658,476
Government securities (2)	19,494	101,915
	735,712	760,391

(1) Financial investments linked to Bank Certificates of Deposit (CDBs), to be used as a collateral to a guarantee letter, of certain loans.

(2) Financial investments in Public Securities (Financial Treasury Bills) managed by its exclusive funds. In 2016, in addition to the Financial Treasury Bills, the Company had a financial investment in Public Securities managed by its exclusive funds which were used as collateral for future CDI rate’s contracts in the period as detailed in note 12 (b). These investments were settled in October 2017.

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5. TRADE RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2017

Trade Receivables Tables

Trade receivables

		Consolidated
	12/31/2017	12/31/2016
Trade receivables
Third parties
Domestic market	1,290,823	1,027,639
Foreign market	982,846	919,936
	2,273,669	1,947,575
Allowance for doubtful accounts	(191,979)	(172,782)
	2,081,690	1,774,793
Related parties (Note 18 b)	115,388	129,837
	2,197,078	1,904,630
Other receivables
Dividends receivable (Note 18 b) (*)	41,528	37,679
Advances to employees	33,942	34,607
Other receivables	3,667	20,300
	79,137	92,586
	2,276,215	1,997,216

(*) Refers mainly to dividends from CSN Mineração S.A. totaling R$ 837,084 received in February 2018.

Gross trade receivables from third parties

The breakdown of gross trade receivables from third parties is as follows:

		Consolidated
	12/31/2017	12/31/2016
Current	1,391,839	1,381,255
Past-due up to 180 days	310,106	245,012
Past-due over 180 days	571,724	321,308
	2,273,669	1,947,575

Changes in allowance for doubtful debts

The movements in the Group’s allowance for doubtful debts are as follows:

		Consolidated
	12/31/2017	12/31/2016
Opening balance	(172,782)	(151,733)
Estimated losses	(36,697)	(25,474)
Recovery of receivables	17,500	4,425
Closing balance	(191,979)	(172,782)

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6. INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2017

Inventories Tables

Inventory

		Consolidated
	12/31/2017	12/31/2016
Finished goods	1,308,802	1,183,619
Work in progress	1,135,589	674,860
Raw materials	1,050,588	1,124,158
Spare parts	814,725	824,478
Iron ore	278,041	255,029
Advances to suppliers	12,514	3,168
(-) Provision for losses	(135,840)	(101,176)
	4,464,419	3,964,136

Changes in provision for inventory losses

The movements in the provision for inventory losses are as follows:

		Consolidated
	12/31/2017	12/31/2016
Opening balance	(101,176)	(111,427)
Reversal / (losses) for slow-moving and obsolescence	(34,664)	10,251
Closing balance	(135,840)	(101,176)

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7. OTHER CURRENT AND NON-CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2017

Other Current And Non-current Assets Tables

Other current and non-current assets

The group of other current and non-current assets is comprised as follows:

				Consolidated
	Current		Non-current
	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Judicial deposits (Note 16)			339,351	331,258
Credits with the PGFN (1)			46,774	46,774
Recoverable taxes (2)	866,986	780,715	401,071	386,872
Prepaid expenses	50,078	27,011	30,741	20,421
Actuarial asset - related party (Note 18 b)			111,281	119,854
Derivative financial instruments (Note 12 I)		2,298
Securities held for trading (Note 12 I )	2,952	2,966
Iron ore inventory (3)			144,499	144,499
Northeast Investment Fund – FINOR			26,598	26,598
Other receivables (Note 12 I)			20,024	15,291
Loans with related parties (Note 18 b and 12 I)	2,441		554,694	479,960
Other receivables from related parties (Note 18 b)	3,577	5,768	30,770	32,020
Monetary adjustment related to the Eletrobrás's compulsory loan (Note 23)			755,151
Other	67,544	33,255	67,521	72,273
	993,578	852,013	2,528,475	1,675,820

(1)  Refers to the excess of judicial deposit originated by the 2009 REFIS (Tax Debt Refinancing Program). After the settlement of the tax debt refinancing program, the amount related to one of the lawsuits was fully redeemed through a judicial authorization.

(2)  Refers mainly to taxes on revenue (PIS/COFINS) and State VAT (ICMS) recoverable and income tax and social contribution for offset.

(3)  Long-term iron ore inventories that will be used after the construction of the processing plant, which will produce pellet feed, expected to start operating in the first half of 2020.

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8. INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Investments Tables

Sale of the Subsidiary - CGPAR

	R$ (000)
Consideration paid	99,452
Net assets acquired at book value	(64,063)
Capital distribution	(35,389)

Direct equity interests in subsidiaries, joint ventures, joint operations, associates and other investments

12/31/2017									12/ 31/ 2016
Companies		Number of shares held by		% Direct equity interest	Participation In				% Direct equity interest		Participation In
					Assets	Liabilities	Shareholders' equity	Profit (loss) for period		Assets	Liabilities	Shareholder s' equity	Profit (loss) for period
		CSN in units
		Common	Preferred
Investments under the equity method
Subsidiaries
CSN Islands VII Corp.		20,001,000		100.00	5,242,890	5,421,043	(178,153)	(385,919)	100.00	6,436,140	6,228,374	207,766	167,767
CSN Islands IX Corp.	(1)												(388)
CSN Islands XI Corp.		50,000		100.00	2,514,894	2,557,398	(42,504)	(63,201)	100.00	2,530,563	2,509,866	20,697	(1,295)
CSN Islands XII Corp.		1,540		100.00	2,166,682	3,312,505	(1,145,823)	(126,524)	100.00	2,244,240	3,263,539	(1,019,299)	75,787
CSN Minerals S.L.U.	(2)							331,897	100.00	3,833,669	9,840	3,823,829	(927,265)
CSN Export Europe, S.L.U.	(2)							22,600	100.00	666,362	30,077	636,285	(185,057)
CSN Metals S.L.U.	(2)							23,188	100.00	636,408	20,668	615,740	(175,236)
CSN Americas S.L.U.	(2)							193,652	100.00	1,492,678	4,445	1,488,233	(220,412)
CSN Steel S.L.U.	(2)	2,042,688		100.00	6,905,164	322,963	6,582,201	108,427	100.00	2,537,179	1,585,977	951,202	323,043
Sepetiba Tecon S.A.		254,015,052		99.99	459,647	160,402	299,245	29,768	99.99	441,214	165,172	276,042	22,794
M inérios Nacional S.A.		66,393,587		99.99	105,586	65,290	40,296	(13,600)	99.99	74,738	28,038	46,700	(12,548)
Fair Value - M inérios Nacional							2,123,507					2,123,507
Estanho de Rondônia S.A.		121,861,697		99.99	46,005	41,032	4,973	(6,291)	99.99	32,816	21,552	11,264	(13,061)
Companhia M etalúrgica Prada		313,651,399		99.99	655,748	485,915	169,833	(29,258)	99.99	769,337	620,509	148,828	(45,783)
CSN Mineração S.A.		158,419,480		87.52	14,273,290	5,620,137	8,653,153	767,568	87.52	13,039,767	4,943,090	8,096,677	580,146
CSN Energia S.A.		43,149		99.99	146,130	55,030	91,100	56,987	100.00	109,290	39,654	69,636	26,240
FTL - Ferrovia Transnordestina
Logística S.A.		395,302,149		90.78	419,388	138,888	280,500	(77,384)	90.78	484,218	126,334	357,884	(11,376)
Companhia Florestal do Brasil		41,673,302		99.99	34,910	3,734	31,176	(1,499)	99.99	35,206	5,179.0	30,027	(2,215)
Nordeste Logística		99,999		99.99	80	55	25	(1)	99.99	81	55	26	(74)
CGPAR - Construção Pesada S.A	(3)							723	100.00	40,889	27,558	13,331	5,887
Fair value fixed assets - CGPAR								(3,940)				53,949	(3,940)
					32,970,414	18,184,392	16,909,529	827,193		35,404,795	19,629,927	17,952,324	(396,986)
Jo int-venture and Jo int-o peratio n
Itá Energética S.A.		253,606,846		48.75	265,476	18,104	247,372	10,789	48.75	282,383	27,728	254,655	8,591
M RS Logística S.A.		26,611,282	2,673,312	18.64	1,520,264	857,581	662,683	85,974	18.64	1,411,526	795,903	615,623	77,828
CBSI - Companhia Brasileira de		1,876,146		50.00	16,005	13,654	2,351	1,785	50.00	13,574	11,517	2,057	2,953
Serviços de Infraestrutura
Transnordestina Logística S.A.		24,168,304		46.28	3,806,380	2,604,198	1,202,182	(21,357)	49.02	3,786,556	2,566,315	1,220,241	(52,127)
Fair Value allocated to TLSA in loss of control							271,116					271,116
					5,608,125	3,493,537	2,385,704	77,191		5,494,039	3,401,463	2,363,692	37,245
A sso ciates
Arvedi M etalfer do Brasil		46,994,971		20.00	43,653	23,978	19,675	(4,368)	20.00	53,101	48,258	4,843	1,372
					43,653	23,978	19,675	(4,368)		53,101	48,258	4,843	1,372
C lassified as available fo r sale (no te 12 I)
Usiminas							2,200,459					1,353,664
Panatlântica							21,974					20,604
							2,222,433					1,374,268
Other investments
							(72,473)	1,985				(74,459)	7,583
Others							63,537	(165)				63,541	(19,557)
							(8,936)	1,820				(10,918)	(11,974)
T o tal Investments							21,528,405	901,836				21,684,209	(370,343)
C lassificatio n o f investiments in the balance sheet
Investments in assets							22,894,885					22,703,508
Investments whith short liabilities							(1,366,480)					(1,019,299)
							21,528,405					21,684,209

(1) Company terminated in 2016;
(2) Merger of the companies by the subsidiary CSN Steel S.L.U. in December 2017, according to note 2;

(3) Company sold in July 2017, to the subsidiary CSN Mineração.

Changes of investments balances in subsidiaries, joint ventures, joint operations, associates and other investments

Changes of investments balances in subsidiaries, joint ventures, joint operations, associates and other investments

		Consolidated
	12/31/2017	12/31/2016
Opening balance of investments	4,568,451	3,998,239
Capital increase/acquisition of shares	20,579	190,651
Dividends (1)	(79,189)	(36,765)
Comprehensive income (2)	850,640	713,442
Equity in results of affiliated companies (4)	147,800	108,031
Amortization of fair value – investment in MRS	(11,746)	(11,746)
Amortization of fair value – investment in CGPAR		(3,940)
Impairment of the Fair Value of Transnordestina (3)		(387,989)
Others	3,460	(1,472)
Closing balance of investments	5,499,995	4,568,451
Total	5,499,995	4,568,451

(1) In 2017 refers to the allocation of dividends from subsidiaries Sepetiba Tecon, MRS Logistica, CSN Energia, Itá Energética, CBSI – Companhia Brasileira de Serviços de Infraestrutura, CSN Minerals, CSN Steel, CSN Metals, CSN Mineração and CSN Americas.

(2) Refers to the mark-to-market of investments classified as available for sale and translation to the reporting currency of the foreign investments (the functional currency of which is not the Brazilian Reais), actuarial gain/loss and gain/loss on net investment hedge from investments measured by equity method.

(3) Refers to impairment of the fair value of Transnordestina Logística S.A, see note 8.d).

(4) The reconciliation of the equity in results of affiliated companies included on investment balance with the amount disclosed in the income statement and it is due to the elimination of the results of the CSN´s transactions with these companies

Equity in results

		Consolidated
	12/31/2017	12/31/2016
Equity in results of affiliated companies
MRS Logística S.A.	171,905	155,617
CBSI - Companhia Brasileira de Serviços de Infraestrutura	1,785	2,953
Transnordestina	(21,357)	(52,127)
Arvedi Metalfer do Brasil	(4,368)	1,372
Others	(165)	216
	147,800	108,031
Eliminations
To cost of sales	(40,823)	(41,556)
To taxes	13,880	14,129
Others
Amortization of fair value -  Investments in MRS	(11,746)	(11,746)
Amortization of fair value - Investments in CGPAR		(3,940)
Equity in results	109,111	64,918

Joint ventures and joint operations financial information

The balances of the balance sheets and income statements of joint venture and joint operation are presented as follows and refer to 100% of the companies´ profit/loss:

				12/31/2017					12/31/2016
	Joint-Venture			Joint-Operation		Joint venture			Joint-Operation
Equity interest (%)	MRS Logística	CBSI	Transnordestina Logística	Itá Energética		MRS Logística	CBSI	Transnordestina Logística	Itá Energética
	34.94%	50.00%	46.30%	48.75%		34.94%	50.00%	49.02%	48.75%
Balance sheet
Current assets
Cash and cash equivalents	484,978	101	5,763	16,231		345,164	2,925	1,899	17,689
Advances to suppliers	14,911	37		22		7,452	951		99
Other current assets	685,311	28,475	49,494	16,447		406,170	19,603	54,652	16,054
Total current assets	1,185,200	28,613	55,257	32,700		758,786	23,479	56,551	33,842
Non-current assets
Other non-current assets	693,434	974	238,004	27,459		598,577	234	261,292	29,219
Investments, PP&E and intangible assets	6,277,550	2,423	7,927,881	484,406		6,215,442	3,434	7,407,189	516,186
Total non-current assets	6,970,984	3,397	8,165,885	511,865		6,814,019	3,668	7,668,481	545,405
Total Assets	8,156,184	32,010	8,221,142	544,565		7,572,805	27,147	7,725,032	579,247
Current liabilities
Borrowings and financing	668,947	1,411	52,691			653,491		76,441
Other current liabilities	1,272,365	25,898	113,739	33,666		740,319	23,034	134,747	53,858
Total current liabilities	1,941,312	27,309	166,430	33,666		1,393,810	23,034	211,188	53,858
Non-current liabilities
Borrowings and financing	2,084,422		5,457,768			2,176,357		5,024,404
Other non-current liabilities	575,170	-	434	3,471		699,830	-	-	3,020
Total non-current liabilities	2,659,592	-	5,458,202	3,471		2,876,187	-	5,024,404	3,020
Shareholders’ equity	3,555,280	4,701	2,596,510	507,428		3,302,808	4,113	2,489,440	522,369
Total liabilities and shareholders’ equity	8,156,184	32,010	8,221,142	544,565		7,572,805	27,147	7,725,032	579,247
				01/01/2017 to 12/31/2017					01/01/2016 to 12/31/2016
	Joint-Venture			Joint-Operation	Joint venture				Joint-Operation
Equity interest (%)	MRS Logística	CBSI	Transnordestina Logística	Itá Energética		MRS Logística	CBSI	Transnordestina Logística	Itá Energética
	34.94%	50.00%	46.30%	48.75%		34.94%	50.00%	49.02%	48.75%
Statements of Income
Net revenue	3,492,805	135,399		168,194		3,279,420	122,870		172,263
Cost of sales and services	(2,307,108)	(120,647)		(76,810)		(2,208,786)	(105,692)		(91,568)
Gross profit	1,185,697	14,752	-	91,384		1,070,634	17,178	-	80,695
Operating (expenses) income	(283,151)	(8,340)	(32,245)	(58,465)		(160,187)	(8,367)	(97,596)	(54,616)
Finance income (costs), net	(187,295)	(1,004)	(13,938)	317		(249,300)	(1,676)	(6,032)	397
Income before income tax and social contribution	715,251	5,408	(46,183)	33,236		661,147	7,135	(103,628)	26,476
Current and deferred income tax and social contribution	(254,001)	(1,838)		(11,105)		(243,602)	(1,229)		(8,854)
(Loss) profit for the year, net	461,250	3,570	(46,183)	22,131		417,545	5,906	(103,628)	17,622

Assumptions for impairment test

Measurement of recoverable value:

Cash Flow Projection	Until 2057
Gross Margin	Based on market studies to capture operations costs and loads, according studied of market trends.
Estimated Costs	Costs based on studies and market trends.
Growth rate in perpetuity	Growth rate was not considered due to the projection model until the end of the concession.
Discount rate	Between 5.1% to 6.25% in real terms.

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9. PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [abstract]

Property, plant and equipment

							Consolidated
	Land	Buildings and Infrastructure	Machinery, equipment and facilities	Furniture and fixtures	Construction in progress	Other (*)	Total
Balance at December 31, 2015	263,539	2,689,241	11,072,244	38,730	3,199,386	563,086	17,826,226
Cost	263,539	3,429,573	18,601,088	182,830	3,199,386	811,080	26,487,496
Accumulated depreciation		(740,332)	(7,528,844)	(144,100)		(247,994)	(8,661,270)
Balance at December 31, 2015	263,539	2,689,241	11,072,244	38,730	3,199,386	563,086	17,826,226
Effect of foreign exchange differences	(13,348)	(38,538)	(149,908)	(915)	(8,345)	(2,973)	(214,027)
Acquisitions	4	100	205,488	867	1,412,685	16,987	1,636,131
Capitalized interest (notes 24 and 29)					215,794		215,794
Write-off (note 23)	(144)	(2,723)	(10,423)	(77)	(41,093)	(20,785)	(75,245)
Depreciation (note 22)		(116,760)	(1,096,668)	(5,822)		(34,929)	(1,254,179)
Transfers to other asset categories	14,951	298,121	2,318,728	444	(2,502,615)	(129,629)
Transfers to intangible assets					(16,538)		(16,538)
Acquisition control - CGPAR			7,377	189		575	8,141
Goodwill - Aquisition control CGPAR			57,889				57,889
Transfer of Metalic - Held for sale	(373)	(13,466)	(30,440)	(208)	(261)	(269)	(45,017)
Others		(296)	(4,657)	(45)	1,851	(149)	(3,296)
Balance at December 31, 2016	264,629	2,815,679	12,369,630	33,163	2,260,864	391,914	18,135,879
Cost	264,629	3,637,903	20,712,371	173,821	2,260,864	676,529	27,726,117
Accumulated depreciation		(822,224)	(8,342,741)	(140,658)		(284,615)	(9,590,238)
Balance at December 31, 2016	264,629	2,815,679	12,369,630	33,163	2,260,864	391,914	18,135,879
Effect of foreign exchange differences	8,702	21,737	72,811	593	3,076	265	107,184
Acquisitions	8,241	1,196	91,251	1,171	951,796	10,091	1,063,746
Capitalized interest (notes 24 and 29)					91,957		91,957
Write-off (note 23)	653	30,634	(30,383)	(37)	(2,536)	(26,388)	(28,057)
Depreciation (note 22)		(156,580)	(1,174,852)	(5,656)		(43,105)	(1,380,193)
Transfers to other asset categories	(2,485)	84,281	659,119	3,869	(805,207)	60,423
Transfers to intangible assets					(26,183)		(26,183)
Others			(1,656)		2,168	(6)	506
Balance at December 31, 2017	279,740	2,796,947	11,985,920	33,103	2,475,935	393,194	17,964,839
Cost	279,740	3,819,929	21,674,362	164,152	2,475,935	669,096	29,083,214
Accumulated depreciation		(1,022,982)	(9,688,442)	(131,049)		(275,902)	(11,118,375)
Balance at December 31, 2017	279,740	2,796,947	11,985,920	33,103	2,475,935	393,194	17,964,839

(*) Refer basically to railway assets such as courtyards, tracks and leasehold improvements, vehicles, hardware, mines, ore deposits, and spare part inventories.

Construction in progress

The breakdown of the projects that comprise construction in progress is as follows:

					Consolidated
Project description	Start date	Completion date		12/31/2017	12/31/2016
Logistics
Current investments to maintain current operations at their full capacity.				106,956	103,284
				106,956	103,284
Mining
Expansion of Casa de Pedra Mine capacity production.	2007	2020	(1)	750,999	689,160
Expansion of TECAR export capacity.	2009	2022	(2)	275,811	253,545
Current investments to maintain current operations at their full capacity.				408,522	261,056
				1,435,332	1,203,761
Steel
Supply of 16 torpedo’s cars for operation in the steel industry.	2008	2019		99,483	91,779
Current investments to maintain current operations at their full capacity.			(3)	228,029	307,448
				327,512	399,227
Cement				554,865	529,631
Construction of cement plants.	2011	2020	(4)	51,270	24,961
Current investments to maintain current operations at their full capacity.				606,135	554,592
Total Construction in Progress				2,475,935	2,260,864

(1) Estimated completion date of the Central Plant Step 1;

(2) Estimated completion date of phase 60 Mtpa;

(3) Refers substantially to the reforming of batteries for coke ovens and reuse of the carbochemical cooling waters;

(4) Refers substantially to the acquisition of new Integrated Cement Plants

Estimated useful lives

The average estimated useful lives are as follows (in years):

		Consolidated
	12/31/2017	12/31/2016
Buildings	39	41
Machinery, equipment and facilities	21	18
Furniture and fixtures	12	12
Other	17	14

Capitalize borrowing costs rates

The rates used to capitalize borrowing costs are as follows:

Rates	12/31/2017	12/31/2016
Unspecified projects	8.63%	10.48%

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10. INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2017

Intangible Assets Tables

Intangible assets

							Consolidated
	Goodwill	Customer relationships	Software	Trademarks and patents	Rights and licenses (*)	Others	Total
Balance at December 31, 2015	3,604,022	413,276	75,237	143,636	3,185,700	395	7,422,266
Cost	3,974,128	549,302	173,154	143,636	3,185,700	395	8,026,315
Accumulated amortization	(260,776)	(136,026)	(97,917)				(494,719)
Adjustment for accumulated recoverable value	(109,330)						(109,330)
Balance at December 31, 2015	3,604,022	413,276	75,237	143,636	3,185,700	395	7,422,266
Effect of foreign exchange differences		(74,167)	(236)	(27,440)		(79)	(101,922)
Acquisitions and expenditures			2,995			124	3,119
Transfer of property, plant and equipment			16,538				16,538
Writte-of	(13,091)		(3)				(13,094)
Amortization (note 22)		(41,449)	(26,093)		(776)		(68,318)
Aquisition of control - CGPAR			47				47
Transfer of Metalic - Held for sale			(232)				(232)
Balance at December 31, 2016	3,590,931	297,660	68,253	116,196	3,184,924	440	7,258,404
Cost	3,834,234	444,635	183,166	116,196	3,185,700	440	7,764,371
Accumulated amortization	(133,973)	(146,975)	(114,913)		(776)		(396,637)
Adjustment for accumulated recoverable value	(109,330)						(109,330)
Balance at December 31, 2016	3,590,931	297,660	68,253	116,196	3,184,924	440	7,258,404
Effect of foreign exchange differences		41,916	183	17,941		65	60,105
Acquisitions and expenditures			622				622
Transfer of property, plant and equipment			26,183				26,183
Disposals			(70)				(70)
Amortization (note 22)		(38,701)	(21,986)		(12,455)		(73,142)
Aquisition of control - CGPAR						(56)	(56)
Balance at December 31,2017	3,590,931	300,875	73,185	134,137	3,172,469	449	7,272,046
Cost	3,834,234	513,068	167,162	134,137	3,185,701	449	7,834,751
Accumulated amortization	(133,973)	(212,193)	(93,977)		(13,232)		(453,375)
Adjustment for accumulated recoverable value	(109,330)						(109,330)
Balance at December 31,2017	3,590,931	300,875	73,185	134,137	3,172,469	449	7,272,046

Estimated useful lives

The estimated average useful lives by nature are as follows (in years):

		Consolidated
	12/31/2017	12/31/2016
Software	8	8
Customer relationships	13	13

Cash generating units

The CGU with intangible assets in this situation are as follows:

						Consolidated
		Goodwill		Trademarks		Total
Cash generating unity	Segment	12/31/2017	12/31/2016	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Packaging	Steel	158,748	158,748			158,748	158,748
Long steel (2)	Steel	235,595	235,595	134,137	116,196	369,732	351,791
Mining (3)	Mining	3,196,588	3,196,588			3,196,588	3,196,588
		3,590,931	3,590,931	134,137	116,196	3,725,068	3,707,127

(2) The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows.

(3) Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineração, an operation that was concluded in December 2015. From 2016, the balance started to be tested annually for impairment analysis.

Assumptions for impairment test

The main assumptions used in calculations of value in use at December 31, 2017 are as follows:

	Metal Packaging	Long Steel (**)	Mining
Measurement of recoverable value	Discounted Cash Flow	Discounted Cash Flow	Discounted Cash Flow
Cash flow projection	Until 2028	Until 2028	Until 2056
Gross Margin	Gross margin updated based on historical data, impacts of business restructuring and market trends	Gross margin updated based on historical data and market trends.	Average of the gross margin of each Cash generating units based on the history and projections to the next 39 years and long-term price and exchange rate curves from industry reports.
Cost Atualization	Cost based on historical data of each product and impacts of business restructuring.	Costs based on historical data and market trends.	Costs based on historical data, mix of products and market trends.
Growth rate	Without growth in real terms, only updated by long term inflation of 4.0% .	Without growth in real terms, only updated by long term inflation of 2.0% , Euro zone.	The growth rate was not considered.
Discount rate	These cash flows were considered using a discount rate after taxes between 7% and 13% in real terms. The discount rate was based on the weighted average cost of capital ("WACC") that reflects the specific risk of each segment.

(*) Refer to assets of subsidiary SWT, located in Germany. The discount rate was applied on the discounted cash flow prepared in Euros, the functional currency of this subsidiary.

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11. BORROWINGS, FINANCING AND DEBENTURES (Tables)

12 Months Ended

Dec. 31, 2017

Borrowings Financing And Debentures Tables

Borrowings, financing and debentures

The balances of borrowings, financing and debentures, which are carried at amortized cost, are as follows:

					Consolidated
	Rates p.a.  (%)	Current liabilities		Non-current liabilities
		12/31/2017	12/31/2016	12/31/2017	12/31/2016
FOREIGN CURRENCY
Prepayment	1% to 3.5%	2,174	110,944	489,584	482,347
Prepayment	3.51% to 8%	788,989	438,802	3,607,925	4,290,062
Perpetual bonds	7%	4,503	4,436	3,308,000	3,259,100
Fixed rate notes	4.14% to 10%	139,184	137,126	5,612,342	5,529,380
ACC	3.135%	379,822
Others	1.2% to 8%	251,630	95,983	197,130	259,262
		1,566,302	787,291	13,214,981	13,820,151
LOCAL CURRENCY
BNDES/FINAME	1,3% + TJLP and fixed rate 2.5% to 6% + 1,5%	71,121	73,736	960,872	1,012,268
Debentures	110.8% to 113.7% of CDI	523,252	538,003	770,767	1,270,383
Prepayment	109.5% to 116.5% of CDI and fixed rate of 8%	1,789,737	570,778	3,378,333	5,080,000
CCB	112.5% and 113% of CDI	2,601,352	181,143	4,693,000	7,200,000
		4,985,462	1,363,660	9,802,972	14,562,651
Total borrowings and financing (Note 12 I)		6,551,764	2,150,951	23,017,953	28,382,802
Transaction costs and issue premiums		(24,862)	(33,503)	(34,011)	(59,232)
Total borrowings and financing + transaction costs		6,526,902	2,117,448	22,983,942	28,323,570

Maturities of borrowings, financing and debentures

As of December 31, 2017, the breakdown of principal plus interest of long-term liabilities as borrowings, financing and debentures by maturity date is presented as follows:

								Consolidated
	Prepayment	Bonds		Perpetual Bonds	CCB	Othes	Total
2019	2,824,551	2,238,034	(*)		1,507,000	670,383	7,239,968	31%
2020	2,409,959	3,374,308	(*)		1,508,000	280,243	7,572,510	33%
2021	1,276,969				774,000	177,659	2,228,628	10%
2022	964,363				784,000	95,484	1,843,847	8%
2023					120,000	56,631	176,631	1%
After 2023						648,369	648,369	3%
Perpetual bonds				3,308,000			3,308,000	14%
	7,475,842	5,612,342		3,308,000	4,693,000	1,928,769	23,017,953	100%

(*) In February 2018, the Company concluded the renegotiation of its debt with Banco do Brasil S.A (“BB”), as well as the issuance of debt instruments and repurchase of US$350 million (Tender Offer), as described in more detail in note 31 - Events subsequent.

New funding transactions and amortization

The table below presents the new funding transactions and amortization during the year:

		Consolidated
	12/31/2017	12/31/2016
Opening balance	30,441,018	34,282,515
Funding Transactions	538,771	30,034
Forfaiting funding / Drawee Risk		78,240
Repayment	(1,528,023)	(695,938)
Payments - Forfaiting / Drawee Risk		(407,155)
Payment of interest and other charges	(2,634,931)	(3,044,342)
Payment of interest and other charges – Forfaiting / Drawee		(5,694)
Provision of interest and other charges	2,438,555	3,156,120
Provision of charges -  Forfaiting / Drawee Risk		4,237
Others (1)	255,454	(2,956,999)
Closing balance	29,510,844	30,441,018

(1) Includes unrealized monetary and foreign exchange variations.

Group captures and amortized loans

In 2017, the Group captures and amortized loans as shown below:

·      Funding

				Consolidated
Transaction	Financial institution	Date	Amount	Maturity
CDC - ERSA	BANCO MERCEDEZ BENS	August/17	4,265	October/21
Advance contract exchange (ACC)	BB	September/17	171,000	may/18
Fixed Rate Notes	JP MORGAN	November/17	163,506	November/18
Advance contract exchange (ACC) (*)	BB	December 2017	200,000	February/18
Total			538,771

(*) The operation was amortized in February 02, 2018

·      Amortization

		Consolidated
Transaction	Payment of principal	Debt charges
Bonds	-	578,482
Fixed Rate Notes	90,028	12,736
Debentures	479,617	201,118
Bank Credit Bill	-	869,717
Export Credit Note	400,000	668,325
Pre - Export Payment	490,803	226,894
BNDES/FINAME	67,575	75,539
Advance contract exchange (ACC)	-	2,120
Total	1,528,023	2,634,931

Borrowings, financing and debentures amortization

The Company is liable for guarantees of its subsidiaries and joint ventures as follows:

	Currency	Maturities	Borrowings		Tax foreclosure		Other		Total
			12/31/2017	12/31/2016	12/31/2017	12/31/2016	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Transnordestina Logísitca	R$	Up to 09/19/2056 and Indefinite	2,541,347	2,547,937	22,214	23,007	3,866	4,866	2,567,427	2,575,810
FTL - Ferrovia Transnordestina	R$	11/15/2020	69,405	76,700					69,405	76,700
Sepetiba Tecon	R$	Indefinite					36,308	28,914	36,308	28,914
Cia Metalurgica Prada	R$	Indefinite			333	333	18,540	19,340	18,873	19,673
CSN Energia	R$	Indefinite			2,829	2,829			2,829	2,829
CSN Mineração	R$	09/22/2022	2,000,000	2,000,000				2,520	2,000,000	2,002,520
Estanho de Rondônia	R$	07/15/2022	3,153						3,153
Total in R$			4,613,905	4,624,637	25,376	26,169	58,714	55,640	4,697,995	4,706,446
CSN Islands XI	US$	09/21/2019	750,000	750,000					750,000	750,000
CSN Islands XII	US$	Perpetual	1,000,000	1,000,000					1,000,000	1,000,000
CSN Resources	US$	07/21/2020	1,200,000	1,200,000					1,200,000	1,200,000
Total in US$			2,950,000	2,950,000					2,950,000	2,950,000
CSN Steel S.L.	EUR	01/31/2020	120,000	120,000					120,000	120,000
Lusosider Aços Planos	EUR	Indefinite	25,000	25,000					25,000	25,000
Total in US$			145,000	145,000					145,000	145,000
Total in R$			10,334,149	10,112,913					10,334,149	10,112,913
			14,948,054	14,737,550	25,376	26,169	58,714	55,640	15,032,144	14,819,359

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12. FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Financial Instruments Tables

Financial instruments

											Consolidated
Consolidated						12/31/2017					12/31/2016
	Notes	Available for sale	Fair value through profit or loss	Loans and receivables	Others liabilities measured at amortized cost	Balances	Available for sale	Fair value through profit or loss	Loans and receivables	Other liabilities measured at amortized cost	Balances
Assets
Current
Cash and cash equivalents	3			3,411,572		3,411,572			4,871,162		4,871,162
Short - term investments	4			735,712		735,712			760,391		760,391
Trade receivables	5			2,197,078		2,197,078			1,904,630		1,904,630
Derivative financial instruments								2,298			2,298
Trading securities	7		2,952			2,952		2,966			2,966
Loans - related parties	7			2,441		2,441
Dividends receivable	5				41,528	41,528				37,679	37,679
Total			2,952	6,346,803	41,528	6,391,283		5,264	7,536,183	37,679	7,579,126
Non-current
Other trade receivables	7			20,024		20,024			15,291		15,291
Investments	8	2,222,433				2,222,433	1,374,268				1,374,268
Loans - related parties	7			554,694		554,694			479,960		479,960
Total		2,222,433		574,718		2,797,151	1,374,268		495,251		1,869,519
Total Assets		2,222,433	2,952	6,921,521	41,528	9,188,434	1,374,268	5,264	8,031,434	37,679	9,448,645
Liabilities
Current
Borrowings and financing	11				6,551,764	6,551,764				2,150,951	2,150,951
Derivative financial instruments								121			121
Trade payables					2,460,774	2,460,774				1,763,206	1,763,206
Dividends and interest on capital	13				510,692	510,692				484,570	484,570
Total					9,523,230	9,523,230		121		4,398,727	4,398,848
Non-current
Borrowings and financing	11				23,017,953	23,017,953				28,382,802	28,382,802
Total					23,017,953	23,017,953				28,382,802	28,382,802
Total Liabilities					32,541,183	32,541,183		121		32,781,529	32,781,650

Financial instruments at fair value through profit or loss

The following table shows the financial instruments recognized at fair value through profit or loss using a valuation method:

Consolidated			12/31/2017			12/31/2016
	Level 1	Level 2	Balances	Level 1	Level 2	Balances
Assets
Current assets
Financial assets at fair value through profit or loss
Derivative financial instruments					2,298	2,298
Trading securities	2,952		2,952	2,966		2,966
Non-current assets
Available-for-sale financial assets
Investments	2,222,433		2,222,433	1,374,268		1,374,268
Total Assets	2,225,385	-	2,225,385	1,377,234	2,298	1,379,532
Liabilities
Current liabilities
Financial liabilities at fair value through profit or loss
Derivative financial instruments					121	121
Total liabilities		-	-		121	121

Investments in financial instruments classified as available-for-sale

The impairment recorded as of December 31, 2015 amounted R$555,298.

Class of shares	Quantity	12/31/2017		Quantity	12/31/2016		Variation in the year
		Share price	Closing Balance		Share price	Closing Balance	Share price	Variation in the carrying amount
Common	107,156,651	10.83	1,160,506	107,156,651	8.26	885,114	2.57	275,392
Preferred	114,280,556	9.10	1,039,953	114,280,556	4.10	468,550	5.00	571,403
	221,437,207		2,200,459	221,437,207		1,353,664		846,795

Foreign exchange exposure

		12/31/2017
Foreign Exchange Exposure	(Amounts in US$’000)		(Amounts in €’000)
Cash and cash equivalents overseas	777,310		2,857
Trade receivables	310,642		2,799
Other assets	3,283		3,636
Total assets	1,091,235		9,292
Borrowings and financing	(4,332,686)		(73,186)
Trade payables	(97,622)		(1,941)
Other liabilities	(3,984)		(3,368)
Total liabilities	(4,434,292)		(78,495)
Foreign exchange exposure	(3,343,057)		(69,203)
Cash flow hedge accounting	1,317,667
Net Investment hedge accounting			72,000
Net foreign exchange exposure	(2,025,390)		2,797
Perpetual Bonds	1,000,000
Net foreign exchange exposure excluding perpetual bonds	(1,025,390)		2,797

Derivative financial instruments

										Consolidated
					12/31/2017				12/31/2016	12/31/2017
			Appreciation (R$)		Fair value (market)		Appreciation (R$)		Fair value (market)	Impact on finance income (cost) in 2017
Counterparties	Functional Currency	Notional amount	Asset position	Liability position	Amounts receivable / (payable)	Notional amount	Asset position	Liability position	Amounts receivable / (payable)
BNPP	Dollar					10,250	33,435	(31,137)	2,298	(229)
Total dollar-to-euro swap						10,250	33,435	(31,137)	2,298	(229)
BM&FBovespa	Real					1,641,378	-	-	(121)	28,503
Total DI future						1,641,378	-	-	(121)	28,503
							33,435	(31,137)	2,177	28,274

Dollar x Euro swap

· Classification of the derivatives in the balance sheet and statement of income

					12/31/2017
Instruments	Assets		Liabilities		Net Financial Income (Note 24)
	Current	Total	Current	Total
Dollar - to - euro swap					(229)
Future DI					28,503
					28,274
					12/31/2016
Instruments	Assets		Liabilities		Net Financial Income (Note 24)
	Current	Total	Current	Total
Future Dollar BM&F					(805,760)
Dollar - to - euro swap	2,298	2,298			(6,467)
Fixed rate - to - CDI swap (*)					(299)
CDI - to - fixed rate swap (*)					(63)
Future DI			(121)	(121)	5,829
	2,298	2,298	(121)	(121)	(806,760)

(*) Swap positions were settled in October 2017.

Hedging instruments

									12/31/2017
Designation Date	Hedging Instrument	Hedged item	Type of hedged risk	Hedged period	Exchange rate on designation	Designated amounts (US$’000)	Amortizated part (USD'000)	Effect on Result (*) (R$'000)	Impact on Shareholders' equity (R$'000))
3/11/2014	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2016 - September 2019	2.4442	500,000	(133,334)	53,203	(316,726)
1/12/2014	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2015 - February 2019	2.5601	175,000	(114,999)	38,937	(44,880)
12/18/2014	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	May 2020	2.6781	100,000			(62,990)
07/21/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	July 2019 - March 2021	3.1813	60,000			(7,602)
07/23/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	July 2019 - March 2021	3.2850	100,000			(2,300)
07/23/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.2850	30,000			(690)
07/24/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3254	100,000			1,740
07/27/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3557	25,000			1,193
07/27/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3557	70,000			3,339
07/27/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3557	30,000			1,431
07/28/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3815	30,000			2,205
1/8/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	(1)	3.3940	(9,000)			(774)
3/8/2015	Export prepayments in US$ to third parties	Part of the highly probable future monthly iron ore exports	Foreign exchange - R$ vs. US$ spot rate	October 2018 - October 2022	3.3940	355,000			30,530
Total						1,566,000	(248,333)	92,140	(395,524)

Changes in hedge accounting

The movements in the hedge accounting amounts recognized in shareholders’ equity as of December 31, 2017 are as follows:

	12/31/2015	Movement	Realization	12/31/2016	Movement	Realization	12/31/2017
Cash flow hedge accounting	1,520,089	(1,005,968)	(77,444)	436,677	50,987	(92,140)	395,524
Fair value of cash flow hedge, net of taxes	1,520,089	(1,005,968)	(77,444)	436,677	50,987	(92,140)	395,524

Non-derivative financial liabilities

Non-derivative financial liabilities have been designated represented by loan agreements with financial institutions in the amount of € 120 million. The carrying amounts on December 31, 2017 are:

						12/31/2017
Designation Date	Hedging Instrument	Hedged Item	Type of Hedged Risk	Exchange Rate on designation	Designated amounts (EUR'000)	Amortized part (USD’000)	Impact on shareholders' equity
09/01/2015	Non-derivative financial liabilities in EUR – Debt contract	Investments in subsidiaries which EUR is the functional currency	Foreign exchange - R$ vs. EUR spot rate	4.0825	120,000	(48,000)	(17,911)
Total					120,000	(48,000)	(17,911)

Changes in net investment hedge

The changes in the amounts related to net investment hedge as of December 31, 2017 are presented below:

	12/31/2015	Movement	Realization	12/31/2016	Movement	Realization	12/31/2017
Net investment hedge accounting	20,148	(77,952)		(57,804)	39,893		(17,911)
Fair value of net investment hedge in foreign operations	20,148	(77,952)		(57,804)	39,893		(17,911)

Currencies used in sensitivity analysis

				12/31/2017
Currency	Exchange rate	Probable scenario	Scenario 1	Scenario 2
USD	3.3080	3.2381	4.1350	4.9620
EUR	3.9693	4.0295	4.9616	5.9540

			12/31/2017
Interest	Interest rate	Scenario 1	Scenario 2
CDI	6.89%	8.61%	10.34%
TJLP	7.00%	8.75%	10.50%
LIBOR	1.84%	2.30%	2.76%

Interests used in sensitivity analysis

The effects on income statement, considering the scenarios 1 and 2 are shown below:

					12/31/2017
Instruments	Notional	Risk	Probable scenario (*)	Scenario 1	Scenario 2
Hedge accounting of exports	1,317,667	Dollar	(92,105)	1,089,711	2,179,422
Currency position	(3,343,057)	Dollar	233,680	(2,764,708)	(5,529,416)
(not including exchange derivatives above)
Consolidated exchange position	(2,025,390)	Dollar	141,575	(1,674,997)	(3,349,994)
(including exchange derivatives above)
Net Investment hedge accounting	72,000	Euro	4,334	71,447	142,894
Currency position	(69,203)	Euro	(4,166)	(68,672)	(137,344)
Consolidated exchange position	2,797	Euro	168	2,775	5,550
(including exchange derivatives above)

(*) The probable sceneries were calculated considering the following variations to the specified risks: Real x Dollar – appreciation of Real in 2.11% / Real x Euro – appreciation of Real in 1.52%. Source: Quotation from Central Bank of Brazil and Central Bank of Europe on 02/16/2018.

Sensitivity analysis effects on income statement

The Company considered the scenarios 1 and 2 as 25% and 50% of evolution for volatility of the interest as of December 31, 2017.

				Consolidated
					Impact on profit or loss
Changes in interest rates	% Yearly	Assets	Liabilities	Probable scenario (*)	Scenario 1	Scenario 2
TJLP	7.00		(1,003,712)	(3,202)	(17,565)	(35,130)
Libor	1.84		(4,844,015)	(44,657)	(22,247)	(44,494)
CDI	6.89	644,525	(13,550,383)	(206,061)	(222,303)	(444,606)

(*) The sensitivity analysis is based on the assumption of maintaining as probable scenario the market rates at December 31, 2017 recorded in the Company´s assets and liabilities.

Sensitivity analysis of interest rate swaps

The following table shows the contractual maturities of financial liabilities, including accrued interest.

At December 31, 2016	Less than one year	From one to two years		From two to five years	Over five years	Total
Borrowings, financing and debentures	6,551,764		14,812,478	4,249,106	3,956,369	29,569,717
Trade payables	2.460,774					2,460,774
Dividends and interest on capital	510,692					510,692

Sensitivity analysis of changes in interest rates

The estimated fair values for certain consolidated long-term borrowings and financing were calculated at prevailing market rates, taking into consideration the nature, terms and risks similar to those of the recorded contracts, as below:

		12/31/2017		12/31/2016
	Carrying amount	Fair value	Carrying amount	Fair value
Perpetual bonds	3,312,503	2,602,090	3,263,536	1,702,134
Fixed rate notes	5,751,526	6,207,946	5,666,506	4,907,339

Contractual maturities of financial liabilities

The table below shows the evolution of the capital structure of the Company in the last three years, with financing by equity and third-party capital.

Thousands of reais	2017	2016
Shareholder's equity (equity)	8,288,229	7,384,521
Borrowings and Financing  (Third-party capital)	29,510,844	30,441,018
Gross Debit/Shareholder's equity	3.56	4.12

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13. OTHER PAYABLES (Tables)

12 Months Ended

Dec. 31, 2017

Other Payables Tables

Other payables

The group of other payables classified in current and non-current liabilities is comprised as follows:

					Consolidated
	Current			Non-current
	12/31/2017	12/31/2016	12/31/2017		12/31/2016
Payables to related parties (Note 18 b)	57,008	10,927
Derivative financial instruments (Note 12 I)		121
Dividends and interest on capital payable (Note 12 I) (1)	510,692	484,570
Advances from customers	68,521	90,720
Taxes in installments (Note 15)	21,551	24,444		79,242	83,312
Profit sharing – employees	42,699	211,791
Freight provision	81,699	57,586
Provision for industrial restructuring	1,350	13,000
Taxes payable				8,410	8,518
Other provision	152,205	23,162
Third party materials in our possession	231	288
Other payables	123,945	105,115		41,671	39,307
	1,059,901	1,021,724		129,323	131,137

(1) Dividends payable by the subsidiary CSN Mineração.

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14. INCOME TAX AND SOCIAL CONTRIBUTION (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax And Social Contribution Tables

Income tax and social contribution income (expense)

The income tax and social contribution recognized in profit or loss for the year are as follows:

			Consolidated
	12/31/2017	12/31/2016	12/31/2015
Income tax and social contribution income (expense)
Current	(358,981)	(206,178)	(135,671)
Deferred	(50,128)	(60,368)	(2,767,545)
	(409,109)	(266,546)	(2,903,216)

Reconciliation of income tax and social contribution income (expense)

The reconciliation of consolidated income tax and social contribution expenses and income and the result from applying the effective rate to profit before income tax and social contribution are as follows:

			Consolidated
	12/31/2017	12/31/2016	12/31/2015
(Loss)/Profit before income tax and social contribution	520,338	(576,951)	1,685,341
Tax rate	34%	34%	34%
Income tax and social contribution at combined statutory rate	(176,915)	196,163	(573,016)
Adjustment to reflect the effective rate:
Equity in results of affiliated companies	42,431	22,072	394,492
Profit with differentiated rates or untaxed	37,605	(287,502)	798,603
Transfer pricing adjustment	(34,746)	(63,638)	(66,447)
Tax loss carryforwards without recognizing deferred taxes	(368,612)	(821,920)	(89,978)
Limit of Indebtedness	(39,378)	(35,391)	(54,091)
Unrecorded deferred taxes on temporary differences	541,655	643,990	(1,133,091)
(Losses)/Reversal for deferred income and social contribution tax credits	(403,080)	44,691	(2,949,003)
Refis Effect and early discharge program			(2,586)
Income tax and social contribution on foreign profit	(29,964)	(35,613)	72,376
Fair value gain of 59.76% interest held in Namisa			855,551
Goodwill amortization of Metalic	31,439	31,439
Tax incentives	14,358	22,673
Reversal of deferred tax in Namisa			(107,773)
Reversal of deferred tax in Prada			(46,681)
Other permanent deductions (additions)	7,537	16,490	(1,571)
Income tax and social contribution in profit for the period	(409,109)	(266,546)	(2,903,216)
	79%	-46%	172%

Deferred income tax and social contribution

	Consolidated
	Opening Balance	Movement			Opening balance	Movement			Closing Balance
	12/31/2015	Shareholders' Equity	Profit or loss	Others	12/31/2016	Shareholders ' Equity	Profit or loss	Others	12/31/2017
Deferred
Income tax losses	417,256		556,397	(2,853)	970,800		245,846	(79,412)	1,137,234
Social contribution tax losses	161,769		179,887	(1,027)	340,629		94,843	(28,588)	406,884
Temporary differences	(1,572,992)	71,769	(796,652)	9,700	(2,288,175)	26,778	(390,817)	(2,344)	(2,654,558)
- Provision for tax social security, labor, civil and environmental risks			7,615	3,398	256,936		12,963		269,899
- Provision for envieionmental liabilities	89,290		5,758		95,048		(8,197)		86,851
- Assets impairmant losses	87,152		6,756		93,908		(5,475)		88,433
- Inventory imparment losses	29,048		5,234	1,421	35,703		10,111		45,814
- (Gains )/ losses in financial instruments	(5,454)		3,154		(2,300)		1,388		(912)
- (Gains )/losses on available - for - sale financial assets	947,989	(242,060)			705,929	316,563			1,022,492
- Actuarial liability (pension and healthcare plan)	164,167	(15,387)	(14,202)		134,578	180,834	(41,065)	(1,289)	273,058
- Acrrued supplies and services	92,401		30,625	75	123,101		(55,385)		67,716
- Allowance for doubtful debts	38,614		1,751	1,643	42,008		5,208		47,216
- Goodwil on merger	9,211		(283)	(8,113)	815		(207)		608
- Unrealized ex change differences   (1)	2,427,926		(838,275)		1,589,651	56,493	(134,992)		1,511,152
- (Gain) in control loss on Transnordestina	(224,096)		131,916		(92,180)				(92,180)
- Cash flow hedge accounting	516,831	(368,360)			148,471	(13,992)			134,479
- Aquisition Fair Value SWT/CBL	(299,574)	52,506	42,717	5,350	(199,001)	(21,143)	26,833		(193,311)
- Deferred taxes non computed	(1,673,904)	527,520	(175,915)	(2,138)	(1,324,437)	(566,173)	(3,255)	(115)	(1,893,980)
- (Losses) estimated/ reversals to deferred taxes credits	(3,173,048)	114,627	44,691		(3,013,730)	82,769	(123,056)		(3,054,017)
- Business Combination	(1,058,088)		(14,736)		(1,072,824)		32,288		(1,040,536)
- Others	212,620	2,923	(33,458)	8,064	190,149	(8,573)	(107,976)	(940)	72,660
Total	(993,967)	71,769	(60,368)	5,820	(976,746)	26,778	(50,128)	(110,344)	(1,110,440)
Total Deferred Assets	78,066				70,151				63,119
Total Deferred  Liabilities	(1,072,033)				(1,046,897)				(1,173,559)
Total Deferred	(993,967)				(976,746)				(1,110,440)

Deferred tax assets on tax losses and temporary differences

The deferred tax assets on tax losses and temporary differences refers mainly to the following:

Nature	Description
Tax losses	In recent periods, the Company started to incur in tax losses, mostly because of high financial expenses, as substantially all our loans and financings are on this level.
Exchange difference expenses	Since 2012 the Company opted by the taxation on a cash basis. As the Company have operated without taxable profit, it would not make sense to use this deductibility year by year (accrual basis). As a result of the cash basis tax treatment, taxes are only due and expenses are only deductible at the time of debt settlement.
Losses on Usiminas shares	The losses on Usiminas shares are recognized on an accrual basis, but the taxable event will occur only at the time of divestment, expected to occur in the period projected to compensate the deferred taxes.
Other provisions	Various accounting provisions are recognized on an accrual basis, but their taxation occurs only at the time of its realization, such as provisions for contingencies, impairment losses, environmental liabilities, etc.

Income tax and social contribution recognized in shareholders' equity

The income tax and social contribution recognized directly in shareholders' equity are as follows:

	Consolidated
	12/31/2017	12/31/2016
Income tax and social contribution
Actuarial gains on defined benefit pension plan	171,473	30,234
Estimated losses for deferred income and social contribution tax credits - actuarial gains	(175,649)	(33,400)
Changes in the fair value on available-for-sale financial assets	(525,107)	(33,796)
Actuarial gains and assets available for sale by incorporation	525,107	33,796
Exchange differences on translating foreign operations	(369,017)	(425,510)
Cash flow hedge accounting	134,478	109,813
Estimated losses for deferred income and social contribution  tax credits - cash flow hedge	(134,478)	(109,813)
	(373,193)	(428,676)

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15. TAX INSTALLMENTS PROGRAMS (Tables)

12 Months Ended

Dec. 31, 2017

Tax Installments Programs Tables

Taxes in installments

The position of the REFIS debts (refinancing program) and other tax installment payment plans, were recorded in current and non-current liabilities, as mentioned in note 13, are as follows:

				Consolidated
	Current		Non-current
	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Federal REFIS Law 11.941/09	12,552	11,956	20,083	19,779
Federal REFIS Law 12.865/13	5,984	5,572	56,381	57,905
Other refinancing program	3,015	6,916	2,778	5,628
	21,551	24,444	79,242	83,312

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16. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2017

Provision For Tax Social Security Labor Civil And Environmental Risks And Judicial Deposits Tables

Accrued amounts and judicial deposits

Claims of different nature are being challenged at the appropriate courts. Details of the accrued amounts and related judicial deposits are as follows:

				Consolidated
	Accrued liabilities		Judicial deposits
	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Tax	113,451	119,523	52,542	62,035
Social security	74,522	62,574	50,098	48,614
Labor	451,173	485,422	202,104	186,823
Civil	148,212	137,857	22,752	23,179
Environmental	37,733	7,716	1,826	2,220
Deposit of a guarantee			10,029	8,387
	825,091	813,092	339,351	331,258

Classification:
Current	105,958	108,607
Non- current	719,133	704,485	339,351	331,258
	825,091	813,092	339,351	331,258

Changes in the provision for tax, social security, labor, civil and environmental risks

The changes in the provision for tax, social security, labor, civil and environmental risks in the year ended December 31, 2017 were as follows:

					Consolidated
					Current + Non- current
Nature	12/31/2016	Additions	Accrued charges	Net utilization of reversal	12/31/2017
Tax	119,523	24,805	6,325	(37,202)	113,451
Social security	62,574	10,333	3,121	(1,506)	74,522
Labor	485,422	42,400	33,330	(109,979)	451,173
Civil	137,857	3,496	11,681	(4,822)	148,212
Environmental	7,716	33,549	221	(3,753)	37,733
	813,092	114,583	54,678	(157,262)	825,091

Legal matters with possible risk of loss

		Consolidated
	12/31/2017	12/31/2016
Income tax / Social contribution - Assessment Notice and imposition of fine (AIIM) - Capital gain for an alleged sale of the shares of its subsidiary NAMISA (1)  .	11,073,961	8,415,142
Income tax / Social contribution - Assessment Notice and imposition of fine (AIIM) - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by Namisa	2,623,179	2,457,855
Assessment Notice and Imposition of fine (AIIM) - Income tax/ Social contribution - gloss of interest on prepayment arising from  supply contracts of iron ore and port services	2,500,606	2,327,499
Notices of violation and imposition of fine - Income taxes and social contribution due to profits from foreign subsidiaries (years 2008,2010 and 2011)	1,858,640	1,644,898
Tax foreclosures - ICMS - Electricity credits	920,306	838,192
Installments MP 470 - alleged insufficiency of tax losses	704,739	652,553
Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS e IPI	1,685,648	1,505,079
Disallowance of the ICMS credits - Transfer of iron ore	499,006	570,997
ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation	275,233	279,511
Disallowance of the tax losses arising on adjustments to the SAPLI	491,862	455,214
Assessment Notice - ICMS - shipping and return merchandise for Industrialization	816,199	749,492
Assessment Notice- Income tax- Capital Gain of CFM vendors located outside	203,185	185,249
CFEM - Divergence on the understanding between CSN and DNPM on the calculation basis	290,249	348,512
Other tax (federal, state, and municipal) lawsuits	3,065,131	2,727,258
Assessment Notice  - ICMS - Questions about sales to incentive zone	170,330
Social security lawsuits	278,600	263,951
Law suit applied by Brazilian antitrust authorities (CADE)	98,189	96,316
Other civil lawsuits	1,111,944	814,440
Labor and social security lawsuits	1,569,712	1,138,155
Environmental lawsuits - ACP TAC/PAC - Compliance with environmental obligations (2)  .	216,878	203,486
Tax foreclosures  - Fine of Volta Grande  IV (3)	67,620	58,045
Others Enviromental lawsuits	117,858	113,741
	30,639,075	25,845,585

 1.    In February 2017, we were notified of the judgment of the Amendment of Judgment filed due the CARF’s decision on case, in which the Federal Revenue Service of Brazil challenges the capital gain on the alleged sale of 40% of NAMISA (currently CSN Mineração S.A.). The CARF, in short, agreed with the infringement notice. The Company, however, is taking of the lawfulness of the operation and, therefore, is evaluating the appropriate legal and procedural measures to reverse the decision. Currently we have been discussing the subject in several processes and there is a fiscal execution by which a portion of our assets, such as buildings, equipment, land, vehicles and fixtures and furniture, has been given as a guarantee. This processual scenario does not change our assessment and, accordingly, we maintain that contingency as possible.

2.      In 1995, the Municipality of Volta Redonda filed a civil action requesting compliance with the requirements of the Environmental Compensation Program (PAC) agreed between the municipality and CSN. In May 2008, despite the fact that CSN had demonstrated its compliance with the TAC / 1995, involving an approximate amount of R$ 16 million, the Municipality of Volta Redonda disagreed and requested payment of the obligations considered by the Municipality as outstanding. After the initial discussions, the Municipality of Volta Redonda filed a petition to execute the allegedly unfulfilled items, in the original amount of R$ 172 million, which was duly contested by the Company. The First Instance Judge appointed a team of experts to determine the outstanding obligations and the respective value involved. Currently, the process is suspended, at the request of both parties, with a view to negotiations for a possible agreement.

3.      On April 8, 2013, INEA imposed on CSN a fine of R$ 35 million in respect of the aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the civil suit filed in July 2012. In connection with the application of this fine, an annulment action was distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, seeking the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action in order to enforce the amount of the fine imposed. The aforementioned Tax Enforcement action was distributed in May 2014 to the 4th Volta Redonda Active Debt Registry in the State of Rio de Janeiro. Currently, said enforcement action is suspended until the judgment of the annulment action, in order to avoid conflicting decisions.

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17. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2017

Provision For Environmental Liabilities And Asset Retirement Obligations Tables

Provision for environmental liabilities and asset retirement obligation

The balance of the provision for environmental liabilities and asset retirement obligation - ARO are as follows:

		Consolidated
	12/31/2017	12/31/2016
Environmental liabilities	255,517	273,475
Asset retirement obligations	81,496	73,589
	337,013	347,064

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18. RELATED-PARTY BALANCES AND TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2017

Related-party Balances And Transactions Tables

Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by transaction - assets and liabilities

· By transaction – Assets and Liabilities

	Consolidated
		Current		Non-Current		Total
		12/31/2017	12/31/2016	12/31/2017	12/31/2016	12/31/2017	12/31/2016
Assets
Trade receivables (note 5)		115,388	129,837			115,388	129,837
Dividends receivable (note 5)		41,528	37,679			41,528	37,679
Actuarial asset (note 7)				111,281	119,854	111,281	119,854
Short-term investments/Investments		53	315,319			53	315,319
Loans (note 7)		2,441		554,694	479,960	557,135	479,960
Other receivables (note 7)		3,577	5,768	30,770	32,020	34,347	37,788
		162,987	488,603	696,745	631,834	859,732	1,120,437
Liabilities
Other payables (Note 13)
Accounts payable		57,008	10,927			57,008	10,927
Trade payables		81,063	50,623			81,063	50,623
Actuarial liabilities				41,937	28,004	41,937	28,004
		138,071	61,550	41,937	28,004	180,008	89,554

Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by transaction - statement of income

By transaction – Statement of Income

	12/31/2017	12/31/2016	12/31/2015
Revenues
Sales	880,145	878,992	725,285
Interest (Note 24)	61,549	60,964	65,084
Expenses
Purchases	(1,176,930)	(1,099,851)	(1,103,428)
Interest (Note 24)		(3,185)	(1,333)
Foreign exchange and monetary variation, net		(18,398)
	(235,236)	(181,478)	(314,392)

Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by company - assets and liabilities

						Consolidated
		Assets			Liabilities
	Current	Non-current	Total	Current	Non-current	Total
Joint-venture and Joint-operation
Itá Energética S.A.				2,741		2,741
MRS Logística S.A.	40,828		40,828	100,749		100,749
CBSI - Companhia Brasileira de Serviços e	714		714	23,874		23,874
Infraestrutura
Transnordestina Logística S.A (1)	248	554,694	554,942	3,245		3,245
	41,790	554,694	596,484	130,609		130,609
Other related parties
CBS Previdência		111,281	111,281		41,937	41,937
Fundação CSN	1,829		1,829	518		518
Banco Fibra (2)	53		53
Usiminas				410		410
Panatlântica (3)	109,565	1,750	111,315	6,534		6,534
Ibis Participações e Serviços
Partifib Projetos Imobiliários	100		100
Vicunha Imóveis Ltda.
Vicunha Serviços Ltda.
	111,547	113,031	224,578	7,462	41,937	49,399
Associates
Arvedi Metalfer do Brasil S.A.	9,650	29,020	38,670
Total at 12/31/2017	162,987	696,745	859,732	138,071	41,937	180,008
Total at 12/31/2016	488,603	631,834	1,120,437	61,550	28,004	89,554

Transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by company - statement of income

				12/31/2017					12/31/2016				12/31/2015
	Sales	Purchases	Finance income and costs, net	Total	Sales	Purchases	Finance income and costs, net	Foreign exchange and monetary variation, net	Total	Sales	Purchases	Finance income and costs, net	Total
Joint ventures and Joint Operation
Nacional Minérios S,A, (2)										113,563	(198,378)	6,424	(78,391)
Itá Energética S.A		(32,275)		(32,275)		(32,363)			(32,363)
MRS Logística S,A,		(934,279)		(934,279)		(903,030)			(903,030)		(725,710)		(725,710)
CBSI - Companhia Brasileira de Serviços e Infraestrutura	55	(150,758)		(150,703)	18	(138,374)			(138,356)	48	(166,945)		(166,897)
Transnordestina Logística S,A (3)	2,549	(7,916)	53,261	47,894	5,039	(8,505)	55,758		52,292			23,380	23,380
	2,604	(1,125,228)	53,261	(1,069,363)	5,057	(1,082,272)	55,758		(1,021,457)	113,611	(1,091,033)	29,804	(947,618)
Other related parties
CBS Previdência
Fundação CSN	13	(1,118)		(1,105)		(4,045)			(4,045)		(2,152)	3	(2,149)
Banco Fibra (2)			6,290	6,290			(844)	(18,398)	(19,242)			15,592	15,592
Usiminas		(427)		(427)	17,027	(6,026)			11,001	12,289	(1,230)		11,059
Panatlântica (3)	872,047	(43,949)		828,098	779,503				779,503	597,998			597,998
Ibis Participações e Serviços		(5,915)		(5,915)	47	(7,370)			(7,323)		(4,324)		(4,324)
Taquari Participações S,A											(130)		(130)
Partfib Projetos Imobiliários	2,821			2,821	3,082				3,082
Vicunha Imóveis Ltda.		(232)		(232)
Vicunha Serviços Ltda.		(61)		(61)
	874,881	(51,702)	6,290	829,469	799,659	(17,441)	(844)	(18,398)	762,976	610,287	(7,836)	15,595	618,046
Associates
Arvedi Metalfer do Brasil S,A,	2,660		1,998	4,658	31,026		2,995		34,021	1,387		2,465	3,852
Discontinued Operation
Cia Metalic Nordeste					43,250	(138)	(130)		42,982	61,684	(951)		60,733
Total	880,145	(1,176,930)	61,549	(235,236)	878,992	(1,099,851)	57,779	(18,398)	(181,478)	786,969	(1,099,820)	47,864	(264,987)

(1) Transnordestina Logística S.A: Assets: Refers mainly to contracts in R$: interest equivalent to 102.0% and 115.0% of CDI. On December 31, 2017, the borrowings carrying amounts totaled to R$507,009 (R$459,762 as of December 31, 2016).
(2) Banco Fibra S.A: Assets: Refers to financial investments in CDB and Time deposit – at market rate
(3) Panatlantica:Receivables from the sale of steel products.

Key management personnel compensation

The following is information on the compensation of such personnel and the related balances as of December 31, 2017.

	12/31/2017	12/31/2016	12/31/2015
	Statement of Income
Short-term benefits for employees and officers	39,721	71,852	47,578
Post-employment benefits	110	306	311
	39,831	72,158	47,889

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19. SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2017

Shareholders Equity Tables

Ownership structure

As of December 31, 2017, the Company’s ownership structure was as follows:

			12/31/2017			12/31/2016
	Number of common shares	% of total shares	% of voting capital	Number of common shares	% of total shares	% of voting capital
Vicunha Aços S.A.	682,855,454	49.21%	50.32%	682,855,454	49.21%	50.32%
Rio Iaco Participações S.A. (*)	58,193,503	4.19%	4.29%	58,193,503	4.19%	4.29%
CFL Participações S.A. (*)	3,977,536	0.29%	0.29%	3,977,536	0.29%	0.29%
Vicunha Textil S.A. (*)	4,927,000	0.36%	0.36%	4,927,000	0.36%	0.36%
Caixa Beneficente dos Empregados da CSN - CBS	20,143,031	1.45%	1.48%	20,143,031	1.45%	1.48%
BNDES Participações S.A. – BNDESPAR	8,794,890	0.63%	0.65%	8,794,890	0.63%	0.65%
NYSE (ADRs)	303,590,364	21.88%	22.37%	323,546,664	23.32%	23.84%
BM&FBovespa	274,651,269	19.79%	20.24%	254,694,969	18.36%	18.77%
Total shares outstanding	1,357,133,047	97.81%	100.00%	1,357,133,047	97.81%	100.00%
Treasury shares	30,391,000	2.19%		30,391,000	2.19%
Total shares	1,387,524,047	100.00%		1,387,524,047	100.00%

(*) Controlling group companies.

Share buyback programs

Program	Board’s Authorization	Authorized quantity	Program period	Average buyback price	Minimum and maximum buyback price	Number bought back	Share cancelation		Balance in treasury
1º	3/13/2014	70,205,661	From 3/14/2014 to 4/14/2014	R$ 9.34	R$ 9.22 and R$ 9.45	2,350,000			2,350,000
2º	4/15/2014	67,855,661	From 4/16/2014 to 5/23/2014	R$ 8.97	R$ 8.70 and R$ 9.48	9,529,500			11,879,500
3º	5/23/2014	58,326,161	From 5/26/2014 to 6/25/2014	R$ 9.21	R$ 8.61 e R$ 9.72	31,544,500			43,424,000
4º	6/26/2014	26,781,661	From 6/26/2014 to 7/17/2014	R$ 10.42	R$ 9.33 and R$ 11.54	26,781,661			70,205,661
	7/18/2014			Not applicable	Not applicable		60,000,000	(1)	10,205,661
5º	7/18/2014	64,205,661	From 7/18/2014 to 8/18/2014	R$ 11.40	R$ 11.40	240,400			10,446,061
	8/19/2014			Not applicable	Not applicable		10,446,061	(1)
6º	8/19/2014	63,161,055	From 8/19/2014 to 9/25/2014	R$ 9.82	R$ 9.47 and R$ 10.07	6,791,300			6,791,300
7º	9/29/2014	56,369,755	From 9/29/2014 to 2/29/2014	R$ 7.49	R$ 4.48 and R$ 9.16	21,758,600			28,549,900
8º	12/30/2014	34,611,155	From 12/31/2014 to 3/31/2015	R$ 5.10	R$ 4.90 and R$ 5.39	1,841,100			30,391,000
9º (*)	03/31/2015	32,770,055	From 4/01/2015 to 6/30/2015

(*) There were no share buyback in this program.

(1)    In 2014 the Board of Directors approved the cancelation of 70,446,061 treasury shares without change in the Company’s share capital.

Position of treasury shares

As of December 31, 2017, the position of the treasury shares was as follows:

Quantity purchased (in units)	Amount	Share price			Share
	paid for				market price
	the shares	Minimum	Maximum	Average	as of 12/31/2017 (*)
30,391,000	R$ 238,976	R$       4.48	R$ 10.07	R$           7.86	R$ 253,765

(*) Using the last share average quotation on B3 S.A. - Brasil, Bolsa, Balcão (former BM&FBovespa) as of December 31, 2017 of R$8.35 per share.

Basic earnings (loss) per share

	12/31/2017	12/31/2016	12/31/2015
	Common Shares
(Loss) profit for the year
Continued operations	10,272	(925,186)	(1,216,033)
Discontinued operations	-	(9,561)	1,911
	10,272	(934,747)	(1,214,122)
Weighted average number of shares	1,357,133,047	1,357,133,047	1,357,150,010
Basic and diluted EPS
Continued operations	0.00757	(0.68172)	(0.89602)
Discontinued operations	-	(0.00704)	0.00141
	0.00757	(0.68876)	(0.89461)

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20. PAYMENT TO SHAREHOLDERS (Tables)

12 Months Ended

Dec. 31, 2017

Payment To Shareholders Tables

Deliberate and paid dividends

The following table shows the history of deliberate and paid dividends:

Approval		Payment
Approval Year	Dividends	Payment Year	Dividends
2014	700,000	2014	424,939
	-	2015	274,917
2015	275,000	2015	274,918
2016 (*)		2016	53
2017 (*)		2017
Total approved	975,000	Total paid	974,827

 (*) There is no dividend deliberation on the year of 2016 and 2017.

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21. NET SALES AND SERVICES REVENUE (Tables)

12 Months Ended

Dec. 31, 2017

Net Sales And Services Revenue Tables

Net sales and services revenue

Net sales and services revenue is comprised as follows:

	12/31/2017	12/31/2016	12/31/2015
Gross revenue
Domestic market	11,487,011	10,206,195	10,212,748
Foreign market	9,980,572	9,571,630	7,725,818
	21,467,583	19,777,825	17,938,566
Deductions
Sales returns and discounts	(262,989)	(190,415)	(297,957)
Taxes on sales	(2,679,993)	(2,438,461)	(2,378,912)
	(2,942,982)	(2,628,876)	(2,676,869)
Net revenue	18,524,601	17,148,949	15,261,697

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22. EXPENSES BY NATURE (Tables)

12 Months Ended

Dec. 31, 2017

Expenses By Nature Tables

Expenses by nature

EXPENSES BY NATURE

	12/31/2017	12/31/2016	12/31/2015
Raw materials and inputs	(5,404,801)	(4,518,718)	(4,858,070)
Labor cost	(2,400,579)	(2,482,111)	(1,887,735)
Supplies	(1,451,437)	(1,384,437)	(1,095,576)
Maintenance cost (services and materials)	(1,145,974)	(1,203,294)	(1,069,404)
Outsourcing services	(3,424,439)	(3,492,520)	(3,284,238)
Depreciation, amortization and depletion (Note 11 a)	(1,408,765)	(1,278,816)	(1,130,869)
Other	(591,094)	(495,274)	(314,730)
	(15,827,089)	(14,855,170)	(13,640,622)
Classified as:
Cost of sales and services	(13,596,141)	(12,640,042)	(11,740,101)
Selling expenses	(1,815,107)	(1,696,896)	(1,430,189)
General and administrative expenses	(415,841)	(518,232)	(470,332)
	(15,827,089)	(14,855,170)	(13,640,622)

Depreciation, amortization and depletion

The depreciation, amortization and depletion additions for the year were distributed as follows:

		Consolidated
	12/31/2017	12/31/2016
Production costs	1,376,862	1,241,425
Sales expenses	8,851	9,163
General and Administrative Expenses	23,052	28,228
	1,408,765	1,278,816
Other operating expenses (*)	44,570	43,681
	1,453,335	1,322,497

(*) Refers mainly to the amortization of intangible assets, see note 23.

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23. OTHER OPERATING INCOME (EXPENSES) (Tables)

12 Months Ended

Dec. 31, 2017

Other Operating Income Expenses Tables

Other operating income (expenses)

	12/31/2017	12/31/2016	12/31/2015
Other operating income
Indemnities/gains on lawsuits	6,106	26,871	5,189
Rentals and leases	1,841	1,483	1,150
Reversal of provisions			5,020
Dividends received	3,248	567	5,794
Extemporaneous PIS/COFINS credits		203,504	234,287
Contractual fines	2,970	2,501	2,200
Gain on business combination		66,496	3,297,499
Actuarial pension plan	36,952	48,790	8,702
Gain on sales of assets held for sale		252,023
Monetary adjustment related to the Eletrobrás compulsory loan (*)	755,151
Other revenues	18,018	61,274	50,506
	824,286	663,509	3,610,347
Other operating expenses
Taxes and fees	(136,348)	(88,249)	(13,999)
Write-off / (Provision) of judicial deposits	(38,258)	(64,886)	(24,145)
Expenses with environmental liabilities, net	(7,156)	(5,023)	(41,697)
Expenses from tax, social security, labor, civil and environmental law suits	(95,744)	(151,534)	(273,890)
Contractual fines		(16,624)	(309)
Depreciation of unused equipment and amortization of intangible assets (Note 22)	(44,570)	(43,681)	(41,068)
Write off of PP&E and Intangible assets (Note 9 and 10)	(28,127)	(88,339)	(6,466)
Losses /reversals estimated in inventories	(12,903)	(17,236)	1,154
Losses on spare parts	(2,872)	(12,080)	(55,790)
Studies and project engineering expenses	(32,956)	(31,156)	(38,138)
Research and development expenses	(3,944)	(2,269)	(3,363)
Advisory expenses	(3,419)	(20,865)	(15,888)
Healthcare plan expenses (Note 28 f)	(97,837)	(80,489)	(56,838)
Impairment of available-for-sale financial assets			(555,298)
REFIS effect - Law 11,941/09 and Law 12,865/13			(4,801)
Provisions/(Provision) for industrial restructuring	5,807	96,390	(122,854)
Hedge cash flow realized (Note 12 b)	(92,140)	(77,444)	(11,439)
Impairment of fair value of Transnordestina		(387,989)
Other expenses	(56,477)	(85,256)	(76,362)
	(646,944)	(1,076,730)	(1,341,191)
Other operating income (expenses), net	177,342	(413,221)	2,269,156

(*) This is a net amount, certain and due, arising from the final judicial decision favorable to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in sentencing the Eletrobrás to the payment of the correct interest and monetary correction of the Compulsory Loan. The final judicial decision, as well as the certainty about the amounts involved in the settlement of the judgment (judicial procedure to request the satisfaction of the right), allowed the conclusion that the right to receive this value is certain. Thus, in line with our legal and accounting advisors, we recognize the credits in noncurrent assets against the result of Other Operating Revenues.

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24. FINANCIAL INCOME (EXPENSES) (Tables)

12 Months Ended

Dec. 31, 2017

Financial Income Expenses Tables

Financial income (expenses)

	12/31/2017		12/31/2016	12/31/2015
Financial income
Related parties (Note 18 b)	61,549		60,964	65,084
Income from short-term investments	162,292		301,401	212,826
Gain from derivative	28,503		5,829	870
Gain on repurchase of debt securities			146,214	166,642
Other income (*)	42,730		129,182	42,298
	295,074		643,590	487,720
Financial expenses
Borrowings and financing - foreign currency		(827,841)	(930,508)	(938,047)
Borrowings and financing - local currency		(1,610,714)	(2,229,849)	(2,116,149)
Related parties (Note 18 b)			(3,185)	(1,333)
Capitalized interest (Notes 9 and 29)		91,957	215,794	166,366
Losses on derivatives			(362)	(4,956)
Interest, fines and late payment charges		(72,343)	(38,002)	(20,511)
Commission and bank fees		(159,088)	(155,249)	(81,594)
PIS/COFINS over financial income		(21,926)	(39,154)	(23,699)
REFIS effect net- Law 11,941/09
Other financial expenses (**)		(142,296)	(102,450)	(105,050)
		(2,742,251)	(3,282,965)	(3,124,973)
Inflation adjustment and exchange differences, net
Inflation adjustments, net	(10,556)		7,865	44,422
Exchange differences, net	(5,665)		921,310	(1,618,659)
Exchange gain (losses) on derivatives	(229)		(812,227)	846,328
	(16,450)		116,948	(727,909)
Financial expenses	(2,758,701)		(3,166,017)	(3,852,882)
Financial expenses, net	(2,463,627)		(2,522,427)	(3,365,162)
Statement of gains and (losses) on derivative transactions
Dollar-to-CDI swap				(18)
Dollar-to-real swap (NDF)				785,702
Future Dollar			(805,760)	25,381
Dollar-to-euro swap (NDF)				39,668
Dollar-to-euro swap	(229)		(6,467)	(4,405)
	(229)		(812,227)	846,328
Swap Pré x CDI			(299)	(4,956)
Swap CDI x Pré			(63)	870
Future DI	28,503		5,829
	28,503		5,467	(4,086)
	28,274		(806,760)	842,242

(*) Refers substantially an updating of tax credits.

(**) Refers substantially IOF (tax on financial transactions) and provision for IRRF (Corporate Income Tax) / CSLL (Social Contribution on Profit).

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25. SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2017

Segment Information Tables

Consolidated results

As from 2013, the Company no longer proportionately consolidates the joint ventures MRS and CBSI. For segment information preparation and presentation purposes, Management decided to maintain the proportionate consolidation of the joint ventures, as historically presented. For consolidated profit reconciliation purposes, the amounts of these companies were eliminated in the column “Corporate expenses/elimination”.

								12/31/2017
P&L	Steel	Mining	Logistics		Energy	Cement	Corporate expenses/elimination	Consolidated
			Port	Railroads	#N/D
Metric tons (Thou)- (unaudited (*)	4,921,719	32,576,843				3,313,061	(5,359,571)
Net revenues
Domestic market	7,818,552	829,268	238,240	1,416,612	407,671	487,129	(2,491,006)	8,706,466
Foreign market	5,140,471	3,791,703					885,961	9,818,135
Total Net Revenue (note 21)	12,959,023	4,620,971	238,240	1,416,612	407,671	487,129	(1,605,045)	18,524,601
Cost of sales and services	(10,537,547)	(3,005,840)	(156,997)	(1,024,696)	(285,085)	(512,762)	1,926,786	(13,596,141)
Gross profit	2,421,476	1,615,131	81,243	391,916	122,586	(25,633)	321,741	4,928,460
General and administrative expenses	(963,822)	(158,958)	(27,943)	(94,921)	(27,098)	(80,823)	(877,383)	(2,230,948)
Depreciation (note 22)	658,587	490,805	15,752	294,571	17,265	121,801	(190,016)	1,408,765
Proportionate EBITDA of joint ventures							538,170	538,170
Adjusted EBITDA	2,116,241	1,946,978	69,052	591,566	112,753	15,345	(207,488)	4,644,447
Sales by geographic area
Asia	23,364	3,592,226					885,961	4,501,551
North America	2,009,337							2,009,337
Latin America	506,951							506,951
Europe	2,564,823	197,701						2,762,524
Others	35,996	1,776						37,772
Foreign market	5,140,471	3,791,703					885,961	9,818,135
Domestic market	7,818,552	829,268	238,240	1,416,612	407,671	487,129	(2,491,006)	8,706,466
Total	12,959,023	4,620,971	238,240	1,416,612	407,671	487,129	(1,605,045)	18,524,601

								12/31/2016
P&L	Steel	Mining	Logistics		Energy	Cement	Corporate expenses/elimination	Consolidated
			Port	Railroads
Metric tons (Thou). - (unaudited)(*)	4,857,174	36,983,297				2,814,476	(4,062,774)
Net revenues
Domestic market	6,980,087	542,028	207,722	1,319,907	269,095	490,608	(2,079,534)	7,729,913
Foreign market	4,535,821	4,039,875					843,340	9,419,036
Total Net Revenue (note 21)	11,515,908	4,581,903	207,722	1,319,907	269,095	490,608	(1,236,194)	17,148,949
Cost of sales and services	(9,393,237)	(3,099,236)	(141,542)	(914,361)	(195,994)	(467,373)	1,571,701	(12,640,042)
Gross profit	2,122,671	1,482,667	66,180	405,546	73,101	23,235	335,507	4,508,907
General and administrative expenses	(914,927)	(185,149)	(25,180)	(83,020)	(25,196)	(74,528)	(907,128)	(2,215,128)
Depreciation (note 22)	679,074	461,287	13,430	227,792	17,140	73,030	(192,937)	1,278,816
Proportionate EBITDA of joint ventures							502,345	502,345
Adjusted EBITDA	1,886,818	1,758,805	54,430	550,318	65,045	21,737	(262,213)	4,074,940
Sales by geographic area
Asia	30,815	3,519,713					843,340	4,393,868
North America	1,891,865							1,891,865
Latin America	259,640							259,640
Europe	2,324,580	434,378						2,758,958
Others	28,921	85,784						114,705
Foreign market	4,535,821	4,039,875					843,340	9,419,036
Domestic market	6,980,087	542,028	207,722	1,319,907	269,095	490,608	(2,079,534)	7,729,913
Total	11,515,908	4,581,903	207,722	1,319,907	269,095	490,608	(1,236,194)	17,148,949

							12/31/2015
P&L	Steel	Mining	Logistics		Energy	Cement	Corporate expenses / elimination	Consolidated
			Port	Railroads
Metric tons (Thou.) - (unaudited)(*)	4,990,299	23,861,003				2,181,731
Net revenues
Domestic market	6,757,186	175,223	212,729	1,156,933	244,549	431,820	(1,295,907)	7,682,533
Foreign market	4,445,813	3,012,027					121,324	7,579,164
Total Net Revenue (note 23)	11,202,999	3,187,250	212,729	1,156,933	244,549	431,820	(1,174,583)	15,261,697
Cost of sales and services	(9,126,889)	(2,323,687)	(141,809)	(788,046)	(195,644)	(330,263)	1,166,237	(11,740,101)
Gross profit	2,076,110	863,563	70,920	368,887	48,905	101,557	(8,346)	3,521,596
General and administrative expenses	(955,247)	(69,602)	(20,473)	(89,678)	(23,186)	(72,894)	(669,441)	(1,900,521)
Depreciation (note 11 a)	670,496	377,344	12,777	189,361	17,073	46,505	(182,687)	1,130,869
Proportionate EBITDA of joint ventures							499,475	499,475
Adjusted EBITDA	1,791,359	1,171,305	63,224	468,570	42,792	75,168	(360,999)	3,251,419

Sales by geographic area
Asia	16,980	2,836,505					122,267	2,975,752
North America	1,901,989							1,901,989
Latin America	376,458	42,730					(943)	418,245
Europe	2,104,944	132,792						2,237,736
Others	45,442							45,442
Foreign market	4,445,813	3,012,027					121,324	7,579,164
Domestic market	6,757,186	175,223	212,729	1,156,933	244,549	431,820	(1,295,907)	7,682,533
Total	11,202,999	3,187,250	212,729	1,156,933	244,549	431,820	(1,174,583)	15,261,697

(*) The ore sales volumes presented in this note take into consideration Company sales and the interest in its subsidiaries and joint ventures .

EBITDA and Adjusted EBITDA

As required by IFRS 8, the table below shows the reconciliation of the measurement used by the chief operating decision maker with the results determined using the accounting practices:

	12/31/2017	12/31/2016	12/31/2015
Net income (loss) for the year	111,229	(853,058)	(1,215,964)
Result from Discontinued Operations		9,561	(1,911)
Depreciation/Amortization/Depletion (Note 22)	1,408,765	1,278,816	1,130,869
Income tax and social contribution (Note 14)	409,109	266,546	2,903,216
Financial income (cost) (Note 24)	2,463,627	2,522,427	3,365,162
EBITDA	4,392,730	3,224,292	6,181,372
Other operating (income) expenses (Note 23)	(177,342)	413,221	(2,269,156)
Equity in results of affiliated companies	(109,111)	(64,918)	(1,160,272)
Proportionate EBITDA of joint ventures	538,170	502,345	499,475
Adjusted EBITDA (*)	4,644,447	4,074,940	3,251,419

(*) The Company discloses its adjusted EBITDA net of its share of investments and other operating income (expenses) because it understands that these should not be included in the calculation of recurring operating cash generation.

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26. EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2017

Employee Benefits Tables

Actuarial employee benefit assets and liabilities

The actuarial calculations are updated at the end of each annual reporting period by outside actuaries and presented in the financial statements pursuant to IAS 19 Employee Benefits.

	12/31/2017	12/31/2016	12/31/2017	12/31/2016
	Actuarial asset		Actuarial liabilities
Pension plan benefits (Note 9 and 15)	(111,281)	(119,854)	41,937	28,004
Post-employment healthcare benefits			866,784	691,262
	(111,281)	(119,854)	908,721	719,266

Reconciliation of employee benefits' assets and liabilities

The reconciliation of employee benefits’ assets and liabilities is as follows:

	12/31/2017	12/31/2016
Present value of defined benefit obligation	3,077,849	2,872,442
Fair value of plan assets	(3,305,356)	(3,193,493)
Deficit (Surplus)	(227,507)	(321,051)
Restriction to actuarial assets due to recovery limitation	158,163	229,201
Liabilities (Assets), net	(69,344)	(91,850)
Liabilities	41,937	28,004
Assets	(111,281)	(119,854)
(Assets) liabilities recognized in the balance sheet	(69,344)	(91,850)

Changes in present value of the defined benefit obligation

The movement in the present value of the defined benefit obligation during 2017 is as follows:

	12/31/2017	12/31/2016
Present value of obligations at the beginning of the year	2,872,442	2,430,381
Cost of service	1,285	1,244
Interest cost	322,359	311,361
Benefits paid	(284,777)	(264,287)
Actuarial loss/(gain)	166,540	393,743
Present value of obligations at the end of the year	3,077,849	2,872,442

Changes in fair value of the plan assets

The movement in the fair value of the plan assets during 2017 is as follows:

	12/31/2017	12/31/2016
Fair value of plan assets at the beginning of the year	(3,193,493)	(2,684,736)
Interest income	(360,013)	(345,521)
Benefits paid	284,777	264,287
Expected return on plan assets (less interest income)	(36,627)	(427,523)
Fair value of plan assets at the end of the year	(3,305,356)	(3,193,493)

Employee benefits recognized in the income statement

The amounts recognized in the income statement for the year ended December 31, 2017 and 2016 are comprised as follows:

	12/31/2017	12/31/2016	12/31/2015
Cost of current service	1,285	1,244	1,807
Interest cost	322,359	311,361	293,533
Expected return on plan assets	(360,013)	(345,521)	(322,460)
Interest on the asset ceiling effect	26,843	22,189	18,422
	(9,526)	(10,727)	(8,698)
Total unrecognized costs (income) (*)	6	7	4
Total (income) recognized in the income statement	(9,532)	(10,734)	(8,702)
Total (income), net (*)	(9,526)	(10,727)	(8,698)

(*) Effect of the limit of IAS 19 Employee Benefits.

Changes in actuarial gains and losses

The movement in the actuarial gains and losses in 2017 is as follows:

	12/31/2017	12/31/2016	12/31/2015
Actuarial losses and (gains)	166,540	393,743	(137,859)
Return on plan assets (less interest income)	(36,627)	(427,523)	147,728
Change in the asset’s limit (excluding the interest revenue)	(97,882)	41,796	(4,208)
	32,031	8,016	5,661
Actuarial losses and (gains) recognized in other comprehensive income	32,037	8,023	5,665
Unrecognized actuarial (gains)	(6)	(7)	(4)
Total cost of actuarial losses and (gains) (*)	32,031	8,016	5,661

(*) Actuarial (gain)/loss results from the fluctuation in the investments comprised in the CBS’s asset portfolio.

Breakdown of actuarial gains or losses

Breakdown of actuarial gains or losses, required by IAS 19:

	12/31/2017
Loss due to change in demographic assumptions	(3,488)
Loss due to change in financial assumptions	264,638
Loss due to experience adjustments	(94,610)
Return on plan assets (less interest income)	(36,627)
Change in the asset’s limit (excluding the interest revenue)	(97,882)
Actuarial losses and (gains)	32,031

Actuarial assumptions used

The main actuarial assumptions used were as follows:

	12/31/2017	12/31/2016
Actuarial financing method	Projected unit credit	Projected unit credit
Functional currency	Real (R$)	Real (R$)
Recognition of plan assets	Fair value	Fair value
Nominal discount rate	Milênnium Plan : 10.42% Plan 35%: 10.30% and Supplementation: 10.32%	Milenium Plan: 11.68%, Plan 35% and Suplementation: 11.72%
Inflation rate	5.00%	5.50%
Nominal salary increase rate	6.05%	6.56%
Nominal benefit increase rate	5.00%	5.50%
Rate of return on investments	Milênnium Plan: 10.42% Plan 35% :10.30% and Supplementation: 10.32%	Milenium Plan: 11.68%, Plan 35% and Suplementation: 11.72%
General mortality table	35% and Average Salary Supplementation  Plans :  AT 2000 segregated by gender (10% smoothed)	Milenium Plan, 35% and Average Salary Supplementation Plans: AT 2000 segregated by gender (10% smoothed)
Disability table	Plan 35% and Supplementation: Light Média Millênnium Plan: Prudential ( retirement)	Light Median
Disability mortality table	Winklevoss - 1%	Winklevoss - 1%
Turnover table	Millennium plan 5% p.a., nil for DB plans	Millennium plan 5% p.a., nil for DB plans
Retirement age	100% on the first date he/she becomes eligible for programmed retirement benefit under the plan	100% on the first date he/she becomes eligible for programmed retirement benefit under the plan
Household of active participants	95% will be married at the time of retirement, with the wife being 4 years younger than the husband	95% will be married at the time of retirement, with the wife being 4 years younger than the husband

Average life expectancy

These tables represent an average life expectancy in years of employees who retire at the age of 65, as shown below:

	12/31/2017		12/31/2016
	BD Plan (*)	Milênio Plan (*)	BD Plan (*)	Milênio Plan (*)
Longevity at age of 65 for current participants
Male	20.45	19.55	20.45	19.55
Female	23.02	22.17	23.02	22.17
Longevity at age of 65 for current participants who are 40
Male	42.69	41.59	42.69	41.59
Female	46.29	45.30	46.29	45.30

(*) The BD Plan is part of the 35% and Average Salary Supplementation Plan and the Milênio Plan is part of the Mixed Supplementary Benefit Plan.

Allocation of plan assets

Allocation of plan assets:

		12/31/2017		12/31/2016
Variable income	50,966	1.54%	62,904	1.97%
Fixed income	3,085,783	93.36%	2,966,272	92.88%
Real estate	44,083	1.33%	42,383	1.33%
Others	124,524	3.77%	121,934	3.82%
Total	3,305,356	100.00%	3,193,493	100.00%

Quantitative sensitivity analysis regarding the significant assumptions for the pension plans

The quantitative sensitivity analysis regarding the significant assumptions for the pension plans as of December 31, 2017 is as follows:

12/31/2017

	Plan covering 35% of the average salary		Average salary supplementation plan		Mixed supplementary benefit plan (Milênio Plan)
Assumption: Discount rate
Sensitivity level	0.5%	-0.5%	0.5%	-0.5%	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations	246	(320)	879	(919)	(656)	491
Effect on present value of obligations	(15,691)	15,342	(75,107)	82,773	(46,256)	49,545
Assumption: Salary growth
Sensitivity level	0.5%	-0.5%	0.5%	-0.5%	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations					330	(283)
Effect on present value of obligations					2,588	(2,221)
Assumption: Mortality table
Sensitivity level	0.5%	-0.5%	0.5%	-0.5%	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations	1,799	(1,646)	8,896	(8,120)	5,555	(4,993)
Effect on present value of obligations	17,563	(16,073)	86,537	(79,006)	53,031	(47,660)
Assumption: Benefit adjustment
Sensitivity level	1.0%	-1.0%	1.0%	-1.0%	1.0%	-1.0%
Effect on current service cost and on interest on actuarial obligations	(1,045)	1,041	(4,623)	4,564	(894)	904
Effect on present value of obligations	(10,158)	10,116	(44,773)	44,205	(9,417)	9,425

Forecast benefit payments of the defined benefit plans

The forecast benefit payments of the defined benefit plans for future years are as follows:

Forecast benefit payments	2017
Year 1	276,660
Year 2	285,841
Year 3	294,923
Year 4	303,858
Year 5	312,591
Next 5 years	1,682,216
Total forecast payments	3,156,089

Post-employment health care plan amounts

The amounts recognized in the balance sheet were determined as follows:

	12/31/2017	12/31/2016
Present value of obligations	866,784	691,262
Liabilities	866,784	691,262

Reconciliation of the healthcare liabilities

The reconciliation of the healthcare liabilities is as follows:

	12/31/2017	12/31/2016
Actuarial liability at the beginning of the year	691,262	489,074
Expenses recognized in income for the year	77,269	62,342
Sponsor's contributions transferred in prior year	(72,192)	(70,411)
Recognition of loss/(gain) for the year	170,445	210,257
Actuarial liability at the end of the year	866,784	691,262

Actuarial gains and losses recognized in shareholders' equity

The actuarial gains and losses recognized in shareholders' equity are as follows:

	12/31/2017	12/31/2016	12/31/2015
Actuarial gain (loss) on obligation	170,445	210,257	(97,501)
Gain (loss) recognized in shareholders' equity	170,445	210,257	(97,501)

Weighted average life expectancy

The weighted average life expectancy based on the mortality table used to determined actuarial obligations is as follows:

	12/31/2017	12/31/2016
Longevity at age of 65 for current participants
Male	19.55	19.55
Female	22.17	22.17
Longevity at age of 65 for current participants who are 40
Male	41.59	41.59
Female	45.30	45.30

Actuarial assumptions used for calculating postemployment healthcare benefits

The actuarial assumptions used for calculating postemployment healthcare benefits were:

	12/31/2017	12/31/2016
Biometrics
General mortality table	AT 2000 segregated by gender	AT 2000 segregated by gender
Disability moratality table	Winklevoss with death probabilities reduced by 1% in all ages	Winklevoss with death probabilities reduced by 1% in all ages
Financial
Actuarial nominal discount rate	10.34%	11.73%
Inflation	5.00%	5.50%
Nominal increase in medical cost based on age	0.5% - 3.00%real a.a	0.5% - 3.00%real a.a
Nominal medical costs growth rate	8.41%	8.93%
Average medical cost	1,001.69	698,57

Quantitative sensitivity analysis regarding the significant assumptions for the postemployment healthcare plans

The quantitative sensitivity analysis regarding the significant assumptions for the postemployment healthcare plans as of December 31, 2017 is as follows:

		12/31/2017
	Healthcare Plan
	Assumption: Discount rate
Sensitivity level	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations	248	660
Effect on present value of obligations	(33,996)	36,985
	Assumption: Medical Inflation
Sensitivity level	1.0%	-1.0%
Effect on current service cost and on interest on actuarial obligations	8,150	(6,698)
Effect on present value of obligations	78,813	(67,670)
	Assumption: Mortality table
Sensitivity level	1.0%	-1.0%
Effect on current service cost and on interest on actuarial obligations	(2,059)	2,040
Effect on present value of obligations	(19,906)	19,728

Forecast benefit payments of the postemployment healthcare plans

The forecast benefit payments of the postemployment healthcare plans for future years are as follows:

Forecast benefit payments	2017
Year 1	75,009
Year 2	78,161
Year 3	81,121
Year 4	83,850
Year 5	86,296
Next 5 years	456,301

Total forecast payments                 860,738

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27. COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Commitments Tables

Take-or-pay contracts

As of December 31, 2017 and 2016, the Company was a party to take-or-pay contracts as shown in the following table:

	Payments in the period (in millions of R$)
Type of service	2016	2017	2018	2019	2020	2021	After 2021	Total
Transportation of iron ore, coal, coke, steel products, cement and mining products.	873,186	957,373	877,288	877,288	854,609	732,391	3,602,687	6,944,263
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets.	621,551	563,743	246,624	36,159	36,159	36,159		355,101
Processing of slag generated during pig iron and steel production	49,487	8,880	6,012	6,012	6,012	6,012	7,515	31,563
Manufacturing, repair, recovery and production of ingot casting machine units.	36,765	52,103	18,118	5,665				23,783
	1,580,989	1,582,099	1,148,042	925,124	896,780	774,562	3,610,202	7,354,710

Minimum future payments related to government concessions

Minimum future payments related to government concessions as of December 31, 2017 fall due according to the schedule set out in the following table:

Concession	Type of service	2018	2019	2020	2021	After 2021	Total
FTL (Ferrovia Transnordestina Logística)	30-year concession granted on December 31, 1997, renewable for another 30 years, to develop public service and operating the railway system in northeastern Brazil. The northeastern railway system covers 4238 kilometers of railway network and operates in Maranhão, Piauí, Ceará, Paraíba, Pernambuco, Alagoas and Rio Grande do Norte.	9,069	9,069	9,069	9,069	54,414	90,690
Tecar	Concession to operate the TECAR, a solid bulk terminal, one of the four terminals that make up the Port of Itaguai, located in Rio de Janeiro. The concession was renewable and the agreement expires in 2047.	107,296	107,296	107,296	107,296	2,789,696	3,218,880
Tecon	25-year concession started in July 2001. On May 10, 2017,, was approved the Decree nº 9,048, which changes de concession extension period for port operations. It was established that the requested extension period, added to the initial period, cannot exceed 70 years.	30,958	30,958	30,958	30,958	139,309	263,141
		147,323	147,323	147,323	147,323	2,983,419	3,572,711

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29. ADDITIONAL INFORMATION TO CASH FLOWS (Tables)

12 Months Ended

Dec. 31, 2017

Additional Information To Cash Flows Tables

Additional information related to statement of cash flows

The following table provides additional information on transactions related to the statement of cash flows:

			Consolidated
	12/31/2017	12/31/2016	12/31/2015
Income tax and social contribution paid	268,847	456,227	134,920
Addition to PP&E with interest capitalization (note 9 and 24)	91,957	215,794	166,366
Acquisition of fixed assets through loans.	4,265	7,437	566,413
Capitalization in subsidiaries without cash	20,264		3,229
	385,333	679,458	870,928

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Direct | Subsidiary 1 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Islands VII Corp.
Interest in subsidiaries		100.00%	100.00%
Core business		Financial transactions
Direct | Subsidiary 2 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Islands XI Corp.
Interest in subsidiaries		100.00%	100.00%
Core business		Financial transactions
Direct | Subsidiary 3 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Islands XII Corp.
Interest in subsidiaries		100.00%	100.00%
Core business		Financial transactions
Direct | Subsidiary 4 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[1]	CSN Minerals S.L.U.
Interest in subsidiaries	[1]	100.00%	100.00%
Core business	[1]	Equity interests
Direct | Subsidiary 5 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[1]	CSN Export Europe, S.L.U.
Interest in subsidiaries	[1]	100.00%	100.00%
Core business	[1]	Financial transactions and Equity interests
Direct | Subsidiary 6 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[1]	CSN Metals S.L.U.
Interest in subsidiaries	[1]	100.00%	100.00%
Core business	[1]	Equity interests and Financial transactions
Direct | Subsidiary 7 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[1]	CSN Americas S.L.U.
Interest in subsidiaries	[1]	100.00%	100.00%
Core business	[1]	Equity interests and Financial transactions
Direct | Subsidiary 8 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Steel S.L.U.
Interest in subsidiaries		100.00%	100.00%
Core business		Equity interests and Financial transactions
Direct | Subsidiary 9 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[2]	TdBB S.A
Interest in subsidiaries	[2]	100.00%	100.00%
Core business	[2]	Equity interests
Direct | Subsidiary 10 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Sepetiba Tecon S.A.
Interest in subsidiaries		99.99%	99.99%
Core business		Port services
Direct | Subsidiary 11 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Minérios Nacional S.A.
Interest in subsidiaries		99.99%	99.99%
Core business		Mining and Equity interests
Direct | Subsidiary 12 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Companhia Florestal do Brasil
Interest in subsidiaries		99.99%	99.99%
Core business		Reforestation
Direct | Subsidiary 13 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Estanho de Rondônia S.A.
Interest in subsidiaries		99.99%	99.99%
Core business		Tin Mining
Direct | Subsidiary 14 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Companhia Metalúrgica Prada
Interest in subsidiaries		99.99%	99.99%
Core business		Manufacture of containers and distribution of steel products
Direct | Subsidiary 15 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[2]	CSN Gestão de Recursos Financeiros Ltda.
Interest in subsidiaries	[2]	99.99%	99.99%
Core business	[2]	Management of funds and securities portfolio
Direct | Subsidiary 16 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Mineração S.A.
Interest in subsidiaries		87.52%	87.52%
Core business		Mining and Equity interests
Direct | Subsidiary 17 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[3]	CSN Energia S.A.
Interest in subsidiaries	[3]	99.99%	100.00%
Core business	[3]	Sale of electric power
Direct | Subsidiary 18 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		FTL - Ferrovia Transnordestina Logística S.A.
Interest in subsidiaries		90.78%	90.78%
Core business		Railroad logistics
Direct | Subsidiary 19 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Nordeste Logística S.A.
Interest in subsidiaries		99.99%	99.99%
Core business		Port services
Direct | Subsidiary 20 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[4]	CGPAR - Construção Pesada S.A. (3)
Interest in subsidiaries	[4]		100.00%
Core business	[4]	Mining support services and Equity interests
Direct | Joint Operation 1 | Proportionate Consolidation
Disclosure of subsidiaries [line items]
Joint operations name		Itá Energética S.A.
Interest in joint operations		48.75%	48.75%
Core business		Electric power generation
Direct | Joint Operation 2 | Proportionate Consolidation
Disclosure of subsidiaries [line items]
Joint operations name		Consórcio da Usina Hidrelétrica de Igarapava
Interest in joint operations		17.92%	17.92%
Core business		Electric power generation
Direct | Joint Venture 1 | Equity Method
Disclosure of subsidiaries [line items]
Joint ventures name		MRS Logistica S.A.
Interest in joint ventures		18.64%	18.64%
Core business		Railroad transportation
Direct | Joint Venture 2 | Equity Method
Disclosure of subsidiaries [line items]
Joint ventures name		Aceros Del Orinoco S.A.
Interest in joint ventures		31.82%	31.82%
Core business		Dormant company
Direct | Joint Venture 3 | Equity Method
Disclosure of subsidiaries [line items]
Joint ventures name		CBSI - Companhia Brasileira de Serviços de Infraestrutura
Interest in joint ventures		50.00%	50.00%
Core business		Equity interests and product sales and iron ore
Direct | Joint Venture 4 | Equity Method
Disclosure of subsidiaries [line items]
Joint ventures name		Transnordestina Logística S.A.
Interest in joint ventures		46.30%	49.02%
Core business		Railroad logistics
Direct | Associate 1 | Equity Method
Disclosure of subsidiaries [line items]
Associates name		Arvedi Metalfer do Brasil S.A.
Interest in associates		20.00%	20.00%
Core business		Metallurgy Equity interests
Indirect | Subsidiary 1 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Companhia Siderúrgica Nacional LLC
Interest in subsidiaries		100.00%	100.00%
Core business		Steel
Indirect | Subsidiary 2 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[5]	CSN Europe Lda.
Interest in subsidiaries	[5]		100.00%
Core business	[5]	Financial transactions, product sales and Equity interests
Indirect | Subsidiary 3 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[5]	CSN Ibéria Lda.
Interest in subsidiaries	[5]		100.00%
Core business	[5]	Financial transactions, product sales and Equity interests
Indirect | Subsidiary 4 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Lusosider Projectos Siderúrgicos S.A.
Interest in subsidiaries		99.94%	99.94%
Core business		Equity interests and product sales
Indirect | Subsidiary 5 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Lusosider Aços Planos, S. A.
Interest in subsidiaries		99.99%	99.99%
Core business		Steel and Equity interests
Indirect | Subsidiary 6 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Resources S.A.
Interest in subsidiaries		100.00%	100.00%
Core business		Financial transactions and Equity interests
Indirect | Subsidiary 7 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[3]	Companhia Brasileira de Latas
Interest in subsidiaries	[3]	99.99%	100.00%
Core business	[3]	Sale of cans and containers in general and Equity interests
Indirect | Subsidiary 8 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Companhia de Embalagens Metálicas MMSA
Interest in subsidiaries		99.67%	99.67%
Core business		Production and sale of cans and related activities
Indirect | Subsidiary 9 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Companhia de Embalagens Metálicas - MTM
Interest in subsidiaries		99.67%	99.67%
Core business		Production and sale of cans and related activities
Indirect | Subsidiary 10 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Steel Holdings 1, S.L.U.
Interest in subsidiaries		100.00%	100.00%
Core business		Financial transactions, product sales and Equity interests
Indirect | Subsidiary 11 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Productos Siderúrgicos S.L.
Interest in subsidiaries		100.00%	100.00%
Core business		Financial transactions, product sales and Equity interests
Indirect | Subsidiary 12 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Stalhwerk Thüringen GmbH
Interest in subsidiaries		100.00%	100.00%
Core business		Production and sale of long steel and related activities
Indirect | Subsidiary 13 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[2]	CSN Steel Sections UK Limited
Interest in subsidiaries	[2]	100.00%	100.00%
Core business	[2]	Sale of long steel
Indirect | Subsidiary 14 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Steel Sections Polska Sp.Z.o.o
Interest in subsidiaries		100.00%	100.00%
Core business		Financial transactions, product sales and Equity interests
Indirect | Subsidiary 15 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Asia Limited
Interest in subsidiaries		100.00%	100.00%
Core business		Commercial representation
Indirect | Subsidiary 16 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[6]	CSN Mining Holding, S.L
Interest in subsidiaries	[6]	87.52%	87.52%
Core business	[6]	Financial transactions, product sales and Equity interests
Indirect | Subsidiary 17 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Mining GmbH
Interest in subsidiaries		87.52%	87.52%
Core business		Financial transactions, product sales and Equity interests
Indirect | Subsidiary 18 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		CSN Mining Asia Limited
Interest in subsidiaries		87.52%	87.52%
Core business		Commercial representation
Indirect | Subsidiary 19 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name		Aceros México CSN
Interest in subsidiaries		100.00%	100.00%
Core business		Commercial representation,sale of steel and related activity
Indirect | Subsidiary 20 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[7]	Lusosider Ibérica S.A.
Interest in subsidiaries	[7]	99.94%
Core business	[7]	Steel, commercial and industrial activities and equity interests
Indirect | Subsidiary 21 | Full Consolidation
Disclosure of subsidiaries [line items]
Subsidiary name	[7]	CSN Mining Portugal, Unipessoal Lda.
Interest in subsidiaries	[7]	87.52%
Core business	[7]	Sale and commercial representation
Indirect | Joint Venture 1 | Equity Method
Disclosure of subsidiaries [line items]
Joint ventures name		MRS Logistica S.A.
Interest in joint ventures		16.30%	16.30%
Core business		Railroad transportation

[1] On February 6, 2018, the Spanish commercial registry recognized the merger by absorption of the companies by CSN Steel, S.L.U., date from which the companies were considered legally extinct. In addition, before third parties and for the purposes of commercial law, the merger is retroactive to the date of December 28, 2017;

[2] They are Dormant Companies, therefore they do not appear in the note 8.a, where is disclosed business information under the equity method and classified as available for sale.

[3] Transfer of 1 share in August 2017;

[4] Company sold to the CSN Mineracao and in August 2017 was incorporated by the same subsidiary;

[5] Companies liquidated in July 2017;

[6] New corporate name of Namisa International Minerios SLU, amended in September 2017;

[7] Companies constituted in 2017;

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - Direct - Full Consolidation	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Exclusive Funds 1
Disclosure of subsidiaries [line items]
Exclusive fund name	Diplic II - Private credit balanced mutual fund	Diplic II - Private credit balanced mutual fund
Interest in exclusive fund	100.00%	100.00%
Core business	Investment fund	Investment fund
Exclusive Funds 2
Disclosure of subsidiaries [line items]
Exclusive fund name	Caixa Vértice - Private credit balanced mutual fund	Caixa Vértice - Private credit balanced mutual fund
Interest in exclusive fund	100.00%	100.00%
Core business	Investment fund	Investment fund
Exclusive Funds 3
Disclosure of subsidiaries [line items]
Exclusive fund name	VR1 – Private Credit balanced mutual fund	VR1 – Private Credit balanced mutual fund
Interest in exclusive fund	100.00%	100.00%
Core business	Investment fund	Investment fund

XML

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
Concession 1
Disclosure of detailed information about service concession arrangements [line items]
Concession name	Sepetiba Tecon S.A. (TECON)
Net book value	R$ 313,000
Classification in balance sheet	Fixed assets intangible: software
Concession 2
Disclosure of detailed information about service concession arrangements [line items]
Concession name	Tecar
Net book value	R$ 1,528,000
Classification in balance sheet	Fixed assets intangible: software
Concession 3
Disclosure of detailed information about service concession arrangements [line items]
Concession name	Ferrovia Transnordestina Logística S.A. (FTL)
Net book value	R$ 230,000
Classification in balance sheet	Fixed assets
Concession 4
Disclosure of detailed information about service concession arrangements [line items]
Concession name	Transnordestina Logística S.A. (TLSA)
Net book value	R$ 7,934,000	[1]
Classification in balance sheet	Investment
Concession 5
Disclosure of detailed information about service concession arrangements [line items]
Concession name	MRS Logística S.A. (MRS)
Net book value	R$ 3,428,000	[2]
Classification in balance sheet	Investment

[1] The amount of fixed and intangible assets is recognized in TLSA's financial statements. We recognize our interest in the net assets of TLSA under the equity method and our investment balance in TLSA as of December 31, 2017 was R$1,473,298.

[2] The amount of fixed and intangible assets is recognized in MRS's financial statements. We recognize our interest in the net assets of MRS by the equity method and our investment balance consolidated in MRS as of December 31, 2017 was R$ 1,325,032.

XML

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3)

12 Months Ended

Dec. 31, 2017

Standard 1

Disclosure of expected impact of initial application of new standards or interpretations [line items]

Standard

IFRS 9 – Financial Instruments

Main items introduced by the standard

The standard retains but simplifies the combined measurement model and establishes two main measurement categories of financial assets: amortized cost and fair value. The classification basis depends on the entity business model and the characteristics of the financial asset’s contractual cash flow.

IFRS 9 retains most of IAS 39 requirements for financial liabilities. The main change refers to those cases where the fair value of the financial liabilities must be segregated so that the fair value portion related to the entities credit risk is recognized in “other comprehensive income” and not in profit or loss for the period.

The standard introduces an expected credit loss model for the measurement of the impairment of financial assets. However, it is no longer necessary for a credit event to have occurred before a credit loss is recognized. Finally, IFRS 9 introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures.

The requirements for derecognition of financial assets and liabilities under IFRS 9 are carried forward from IAS 39. 

Effective date

Jan. 01, 2018

Standard 2

Disclosure of expected impact of initial application of new standards or interpretations [line items]

Standard

IFRS15 – Revenue from Contracts with Customers

Main items introduced by the standard

This new standard introduces the principles that an entity will apply to determine the revenue measurement and when such revenue shall be recognized.

IFRS 15 replaces IAS 11 – Construction Contracts, IAS 18 - Revenue and related interpretations.

Effective date

Jan. 01, 2018

Standard 3

Disclosure of expected impact of initial application of new standards or interpretations [line items]

Standard

IFRS16 - Leases

Main items introduced by the standard

This new standard defines the principles for recognition, measurement, presentation and disclosure of leases and introduces a single model for the accounting of leases in the balance sheet for the lessees. A lessee recognizes a right-of-use asset that represents his obligation to make lease payments. Optional exemptions are available for short- term leases and low-value items. For lessors, accounting treatment remains practically the same, with the classification of leases as operating leases or financial leases, and accounting for these two types of lease differently. IFRS 16 replaces existing lease standards, including IAS 17 – Leasing Operations and IFRIC 4, SIC 5 and SIC 27 – Complementary Aspects of Leasing Operations.

Effective date

Jan. 01, 2019

Standard 4

Disclosure of expected impact of initial application of new standards or interpretations [line items]

Standard

IFRIC 22 – Foreign Currency Transaction and Advance Consideration

Main items introduced by the standard

The Interpretation covers foreign currency transactions (or part of them) when an entity recognizes a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognizes the related asset, expense or income (or part of it).

Effective date

Jan. 01, 2018

Standard 5

Disclosure of expected impact of initial application of new standards or interpretations [line items]

Standard

IFRIC 23 – Uncertainty over Income Tax Treatments

Main items introduced by the standard

Can be unclear how tax law applies to a particular transaction or circumstance. This interpretation complements the IAS 12 – Income Tax, clarify how to reflect the effects of uncertainty over income tax treatments.

Effective date

Jan. 01, 2019

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Dec. 31, 2017 R$ / $ R$ / €	Dec. 31, 2016 R$ / $ R$ / €
BRL/USD
Disclosure of fair value measurement of assets [line items]
Exchange rate | R$ / $	3.3080	3.2591
BRL/EUR
Disclosure of fair value measurement of assets [line items]
Exchange rate | R$ / €	3.9693	3.4384

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3. CASH AND CASH EQUIVALENTS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of fair value measurement of assets [line items]
Cash and banks	R$ 193,702	R$ 502,480
Short-term investments	3,217,870	4,368,682
Cash and cash equivalents	3,411,572	4,871,162	R$ 7,861,052	R$ 8,686,021
Brazil
Disclosure of fair value measurement of assets [line items]
Short-term investments	656,625	1,408,636
Brazil | Government securities
Disclosure of fair value measurement of assets [line items]
Short-term investments	12,100	17,929
Brazil | Private securities
Disclosure of fair value measurement of assets [line items]
Short-term investments	644,525	1,390,707
Abroad | Time deposits
Disclosure of fair value measurement of assets [line items]
Short-term investments	R$ 2,561,245	R$ 2,960,046

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4. FINANCIAL INVESTMENTS (Details) - BRL (R$) R$ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of assets [line items]
Financial Investments		R$ 735,712	R$ 760,391
CDB - Bank deposit certificate
Disclosure of fair value measurement of assets [line items]
Financial Investments	[1]	716,218	658,476
Government securities
Disclosure of fair value measurement of assets [line items]
Financial Investments	[2]	R$ 19,494	R$ 101,915

[1] Financial investments linked to Bank Certificates of Deposit (CDBs), to be used as a collateral to a guarantee letter, of certain loans.

[2] Financial investments in Public Securities (Financial Treasury Bills) managed by its exclusive funds. In 2016, in addition to the Financial Treasury Bills, the Company had a financial investment in Public Securities managed by its exclusive funds which were used as collateral for future CDI rate's contracts in the period as detailed in note 12 (b). These investments were settled in October 2017.

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5. TRADE RECEIVABLES (Details) - BRL (R$) R$ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of assets [line items]
Trade receivables		R$ 2,197,078	R$ 1,904,630
Other receivables		79,137	92,586
Trade and other receivables		2,276,215	1,997,216
Third parties
Disclosure of fair value measurement of assets [line items]
Trade receivables		2,273,669	1,947,575
Third parties | Domestic market
Disclosure of fair value measurement of assets [line items]
Trade receivables		1,290,823	1,027,639
Third parties | Foreign market
Disclosure of fair value measurement of assets [line items]
Trade receivables		982,846	919,936
Allowance for doubtful accounts
Disclosure of fair value measurement of assets [line items]
Trade receivables		(191,979)	(172,782)
Subtotal
Disclosure of fair value measurement of assets [line items]
Trade receivables		2,081,690	1,774,793
Related parties
Disclosure of fair value measurement of assets [line items]
Trade receivables		115,388	129,837
Dividends receivable
Disclosure of fair value measurement of assets [line items]
Other receivables	[1]	41,528	37,679
Advances to employees
Disclosure of fair value measurement of assets [line items]
Other receivables		33,942	34,607
Other receivables
Disclosure of fair value measurement of assets [line items]
Other receivables		R$ 3,667	R$ 20,300

[1] Refers mainly to dividends from CSN Mineracao S.A. totaling R$ 837,084 received in February 2018.

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5. TRADE RECEIVABLES (Details 1) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of assets [line items]
Trade receivables	R$ 2,197,078	R$ 1,904,630
Third parties
Disclosure of fair value measurement of assets [line items]
Trade receivables	2,273,669	1,947,575
Third parties | Current
Disclosure of fair value measurement of assets [line items]
Trade receivables	1,391,839	1,381,255
Third parties | Past-due up to 180 days
Disclosure of fair value measurement of assets [line items]
Trade receivables	310,106	245,012
Third parties | Past-due over 180 days
Disclosure of fair value measurement of assets [line items]
Trade receivables	R$ 571,724	R$ 321,308

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5. TRADE RECEIVABLES (Details 2) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Trade Receivables
Allowance for doubtful debts, beginning	R$ (172,782)	R$ (151,733)
Estimated losses	(36,697)	(25,474)
Recovery of receivables	17,500	4,425
Allowance for doubtful debts, ending	R$ (191,979)	R$ (172,782)

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5. TRADE RECEIVABLES (Details Narrative) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Trade Receivables Details Narrative
Trade receivables transaction costs	R$ 181,972	R$ 263,644

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6. INVENTORIES (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Inventories Details
Finished goods	R$ 1,308,802	R$ 1,183,619
Work in progress	1,135,589	674,860
Raw materials	1,050,588	1,124,158
Spare parts	814,725	824,478
Iron ore	278,041	255,029
Advances to suppliers	12,514	3,168
Provision for losses	(135,840)	(101,176)	R$ (111,427)
Inventories	R$ 4,464,419	R$ 3,964,136

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6. INVENTORIES (Details 1) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Inventories Details 1
Provision for inventory losses, beginning	R$ (101,176)	R$ (111,427)
Reversal / (losses) for slow-moving and obsolescence	(34,664)	10,251
Provision for inventory losses, ending	R$ (135,840)	R$ (101,176)

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7. OTHER CURRENT AND NON-CURRENT ASSETS (Details) - BRL (R$) R$ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of assets [line items]
Other current assets		R$ 993,578	R$ 852,013
Other non-current assets		2,528,475	1,675,820
Judicial deposits
Disclosure of fair value measurement of assets [line items]
Other current assets
Other non-current assets		339,351	331,258
Credits with the PGFN
Disclosure of fair value measurement of assets [line items]
Other current assets	[1]
Other non-current assets	[1]	46,774	46,774
Recoverable taxes
Disclosure of fair value measurement of assets [line items]
Other current assets	[2]	866,986	780,715
Other non-current assets	[2]	401,071	386,872
Prepaid expenses
Disclosure of fair value measurement of assets [line items]
Other current assets		50,078	27,011
Other non-current assets		30,741	20,421
Actuarial asset - related party
Disclosure of fair value measurement of assets [line items]
Other current assets
Other non-current assets		111,281	119,854
Derivative financial instruments
Disclosure of fair value measurement of assets [line items]
Other current assets			2,298
Other non-current assets
Securities held for trading
Disclosure of fair value measurement of assets [line items]
Other current assets		2,952	2,966
Other non-current assets
Iron ore inventory
Disclosure of fair value measurement of assets [line items]
Other current assets	[3]
Other non-current assets	[3]	144,499	144,499
Northeast Investment Fund - FINOR
Disclosure of fair value measurement of assets [line items]
Other current assets
Other non-current assets		26,598	26,598
Other receivables
Disclosure of fair value measurement of assets [line items]
Other current assets
Other non-current assets		20,024	15,291
Loans with related parties
Disclosure of fair value measurement of assets [line items]
Other current assets		2,441
Other non-current assets		554,694	479,960
Other receivables from related parties
Disclosure of fair value measurement of assets [line items]
Other current assets		3,577	5,768
Other non-current assets		30,770	32,020
Monetary adjustment related to the Eletrobras's compulsory loan
Disclosure of fair value measurement of assets [line items]
Other current assets
Other non-current assets		755,151
Other
Disclosure of fair value measurement of assets [line items]
Other current assets		67,544	33,255
Other non-current assets		R$ 67,521	R$ 72,273

[1] Refers to the excess of judicial deposit originated by the 2009 REFIS (Tax Debt Refinancing Program). After the settlement of the tax debt refinancing program, the amount related to one of the lawsuits was fully redeemed through a judicial authorization.

[2] Refers mainly to taxes on revenue (PIS/COFINS) and State VAT (ICMS) recoverable and income tax and social contribution for offset.

[3] Long-term iron ore inventories that will be used after the construction of the processing plant, which will produce pellet feed, expected to start operating in the first half of 2020.

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8. INVESTMENTS (Details) - CGPAR R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
Disclosure of detailed information about business combination [line items]
Consideration paid	R$ 99,452
Net assets acquired at book value	(64,063)
Capital distribution	R$ (35,389)

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8. INVESTMENTS (Details 1) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of fair value measurement of assets [line items]
Assets		R$ 45,209,970	R$ 44,153,623
Shareholders' equity		8,288,229	7,384,521	R$ 7,091,288	R$ 5,734,975
Profit (loss) for the year		(111,229)	853,058	R$ 1,215,964
Classified as available for sale
Usiminas		2,200,459	1,353,664
Panatlantica		21,974	20,604
Classified as available for sale		2,222,433	1,374,268
Classification of investments in the balance sheet
Investments in assets		22,894,885	22,703,508
Investment with short term liabilites		R$ (1,366,480)	R$ (1,019,299)
Subsidiary 1
Disclosure of fair value measurement of assets [line items]
Subsidiary name		CSN Islands VII Corp.
Number of common shares held by CSN		20,001,000
Direct equity interest, subsidiary		100.00%	100.00%
Assets		R$ 5,242,890	R$ 6,436,140
Liabilities		5,421,043	6,228,374
Shareholders' equity		(178,153)	207,766
Profit (loss) for the year		R$ (385,919)	167,767
Subsidiary 2
Disclosure of fair value measurement of assets [line items]
Subsidiary name	[1]	CSN Islands IX Corp.
Profit (loss) for the year	[1]		R$ (388)
Subsidiary 3
Disclosure of fair value measurement of assets [line items]
Subsidiary name		CSN Islands XI Corp.
Number of common shares held by CSN		50,000
Direct equity interest, subsidiary		100.00%	100.00%
Assets		R$ 2,514,894	R$ 2,530,563
Liabilities		2,557,398	2,509,866
Shareholders' equity		(42,504)	20,697
Profit (loss) for the year		R$ (63,201)	R$ (1,295)
Subsidiary 4
Disclosure of fair value measurement of assets [line items]
Subsidiary name		CSN Islands XII Corp.
Number of common shares held by CSN		1,540
Direct equity interest, subsidiary		100.00%	100.00%
Assets		R$ 2,166,682	R$ 2,244,240
Liabilities		3,312,505	3,263,539
Shareholders' equity		(1,145,823)	(1,019,299)
Profit (loss) for the year		R$ (126,524)	R$ 75,787
Subsidiary 5
Disclosure of fair value measurement of assets [line items]
Subsidiary name	[2]	CSN Minerals S.L.U.
Direct equity interest, subsidiary	[2]		100.00%
Assets	[2]		R$ 3,833,669
Liabilities	[2]		9,840
Shareholders' equity	[2]		3,823,829
Profit (loss) for the year	[2]	R$ 331,897	R$ (927,265)
Subsidiary 6
Disclosure of fair value measurement of assets [line items]
Subsidiary name	[2]	CSN Export Europe, S.L.U.
Direct equity interest, subsidiary	[2]		100.00%
Assets	[2]		R$ 666,362
Liabilities	[2]		30,077
Shareholders' equity	[2]		636,285
Profit (loss) for the year	[2]	R$ 22,600	R$ (185,057)
Subsidiary 7
Disclosure of fair value measurement of assets [line items]
Subsidiary name	[2]	CSN Metals S.L.U.
Direct equity interest, subsidiary	[2]		100.00%
Assets	[2]		R$ 636,408
Liabilities	[2]		20,668
Shareholders' equity	[2]		615,740
Profit (loss) for the year	[2]	R$ 23,188	R$ (175,236)
Subsidiary 8
Disclosure of fair value measurement of assets [line items]
Subsidiary name	[2]	CSN Americas S.L.U.
Direct equity interest, subsidiary	[2]		100.00%
Assets	[2]		R$ 1,492,678
Liabilities	[2]		4,445
Shareholders' equity	[2]		1,488,233
Profit (loss) for the year	[2]	R$ 193,652	R$ (220,412)
Subsidiary 9
Disclosure of fair value measurement of assets [line items]
Subsidiary name	[2]	CSN Steel S.L.U.
Number of common shares held by CSN	[2]	22,042,688
Direct equity interest, subsidiary	[2]	100.00%	100.00%
Assets	[2]	R$ 6,905,164	R$ 2,537,179
Liabilities	[2]	322,963	1,585,977
Shareholders' equity	[2]	6,582,201	951,202
Profit (loss) for the year	[2]	R$ 108,427	R$ 323,043
Subsidiary 10
Disclosure of fair value measurement of assets [line items]
Subsidiary name		Sepetiba Tecon S.A.
Number of common shares held by CSN		254,015,052
Direct equity interest, subsidiary		99.99%	99.99%
Assets		R$ 459,647	R$ 441,214
Liabilities		160,402	165,172
Shareholders' equity		299,245	276,042
Profit (loss) for the year		R$ 29,768	R$ 22,794
Subsidiary 11
Disclosure of fair value measurement of assets [line items]
Subsidiary name		Minérios Nacional S.A.
Number of common shares held by CSN		66,393,587
Direct equity interest, subsidiary		99.99%	99.99%
Assets		R$ 105,586	R$ 74,738
Liabilities		65,290	28,038
Shareholders' equity		40,296	46,700
Profit (loss) for the year		R$ (13,600)	(12,548)
Subsidiary 12
Disclosure of fair value measurement of assets [line items]
Subsidiary name		Fair Value - Minérios Nacional
Shareholders' equity		R$ 2,123,507	R$ 2,123,507
Subsidiary 13
Disclosure of fair value measurement of assets [line items]
Subsidiary name		Estanho de Rondônia S.A.
Number of common shares held by CSN		121,861,697
Direct equity interest, subsidiary		99.99%	99.99%
Assets		R$ 46,005	R$ 32,816
Liabilities		41,032	21,552
Shareholders' equity		4,973	11,264
Profit (loss) for the year		R$ (6,291)	R$ (13,061)
Subsidiary 14
Disclosure of fair value measurement of assets [line items]
Subsidiary name		Companhia Metalúrgica Prada
Number of common shares held by CSN		313,651,399
Direct equity interest, subsidiary		99.99%	99.99%
Assets		R$ 655,748	R$ 769,337
Liabilities		485,915	620,509
Shareholders' equity		169,833	148,828
Profit (loss) for the year		R$ (29,258)	R$ (45,783)
Subsidiary 15
Disclosure of fair value measurement of assets [line items]
Subsidiary name		CSN Mineração S.A.
Number of common shares held by CSN		158,419,480
Direct equity interest, subsidiary		87.52%	87.52%
Assets		R$ 14,273,290	R$ 13,039,767
Liabilities		5,620,137	4,943,090
Shareholders' equity		8,653,153	8,096,677
Profit (loss) for the year		R$ 767,568	R$ 580,146
Subsidiary 16
Disclosure of fair value measurement of assets [line items]
Subsidiary name		CSN Energia S.A.
Number of common shares held by CSN		43,149
Direct equity interest, subsidiary		99.99%	100.00%
Assets		R$ 146,130	R$ 109,290
Liabilities		55,030	39,654
Shareholders' equity		91,100	69,636
Profit (loss) for the year		R$ 56,987	R$ 26,240
Subsidiary 17
Disclosure of fair value measurement of assets [line items]
Subsidiary name		FTL - Ferrovia Transnordestina Logística S.A.
Number of common shares held by CSN		395,302,149
Direct equity interest, subsidiary		90.78%	90.78%
Assets		R$ 419,388	R$ 484,218
Liabilities		138,888	126,334
Shareholders' equity		280,500	357,884
Profit (loss) for the year		R$ (77,384)	R$ (11,376)
Subsidiary 18
Disclosure of fair value measurement of assets [line items]
Subsidiary name		Companhia Florestal do Brasil
Number of common shares held by CSN		41,673,302
Direct equity interest, subsidiary		99.99%	99.99%
Assets		R$ 34,910	R$ 35,206
Liabilities		3,734	5,179
Shareholders' equity		31,176	30,027
Profit (loss) for the year		R$ (1,499)	R$ (2,215)
Subsidiary 19
Disclosure of fair value measurement of assets [line items]
Subsidiary name		Nordeste Logística
Number of common shares held by CSN		99,999
Direct equity interest, subsidiary		99.99%	99.99%
Assets		R$ 80	R$ 81
Liabilities		55	55
Shareholders' equity		25	26
Profit (loss) for the year		R$ (1)	R$ (74)
Subsidiary 20
Disclosure of fair value measurement of assets [line items]
Subsidiary name	[3]	CGPAR - Construção Pesada S.A.
Direct equity interest, subsidiary	[3]		100.00%
Assets	[3]		R$ 40,889
Liabilities	[3]		27,558
Shareholders' equity	[3]		13,331
Profit (loss) for the year	[3]	R$ 723	5,887
Subsidiary 21
Disclosure of fair value measurement of assets [line items]
Subsidiary name		Fair value fixed assets - CGPAR
Shareholders' equity			53,949
Profit (loss) for the year		R$ (3,940)	(3,940)
Subsidiary Total
Disclosure of fair value measurement of assets [line items]
Profit (loss) for the year		R$ 827,193	R$ (396,986)
Joint Venture/Joint Operation 1
Disclosure of fair value measurement of assets [line items]
Joint venture and joint operation name		Itá Energética S.A.
Number of common shares held by CSN		253,606,846
Direct equity interest, subsidiary		48.75%
Direct equity interest, joint venture and joint operation			48.75%
Assets		R$ 265,476	R$ 282,383
Liabilities		18,104	27,728
Shareholders' equity		247,372	254,655
Profit (loss) for the year		R$ 10,789	R$ 8,591
Joint Venture/Joint Operation 2
Disclosure of fair value measurement of assets [line items]
Joint venture and joint operation name		MRS Logística S.A.
Number of common shares held by CSN		26,611,282
Number of preferred shares held by CSN		2,673,312
Direct equity interest, subsidiary		18.64%
Direct equity interest, joint venture and joint operation			18.64%
Assets		R$ 1,520,264	R$ 1,411,526
Liabilities		857,581	795,903
Shareholders' equity		662,683	615,623
Profit (loss) for the year		R$ 85,974	R$ 77,828
Joint Venture/Joint Operation 3
Disclosure of fair value measurement of assets [line items]
Joint venture and joint operation name		CBSI - Companhia Brasileira de Serviços de Infraestrutura
Number of common shares held by CSN		1,876,146
Direct equity interest, subsidiary		50.00%
Direct equity interest, joint venture and joint operation			50.00%
Assets		R$ 16,005	R$ 13,574
Liabilities		13,654	11,517
Shareholders' equity		2,351	2,057
Profit (loss) for the year		R$ 1,785	R$ 2,953
Joint Venture/Joint Operation 4
Disclosure of fair value measurement of assets [line items]
Joint venture and joint operation name		Transnordestina Logística S.A.
Number of common shares held by CSN		24,168,304
Direct equity interest, subsidiary		46.28%
Direct equity interest, joint venture and joint operation			49.02%
Assets		R$ 3,806,380	R$ 3,786,556
Liabilities		2,604,198	2,566,315
Shareholders' equity		1,202,182	1,220,241
Profit (loss) for the year		R$ (21,357)	(52,127)
Joint Venture/Joint Operation 5
Disclosure of fair value measurement of assets [line items]
Joint venture and joint operation name		Fair Value allocated to TLSA in loss of control
Shareholders' equity		R$ 271,116	271,116
Joint Venture/Joint Operation
Disclosure of fair value measurement of assets [line items]
Assets		5,608,125	5,494,039
Liabilities		3,493,537	3,401,463
Shareholders' equity		2,385,704	2,363,692
Profit (loss) for the year		R$ 77,191	R$ 37,245
Associate 1
Disclosure of fair value measurement of assets [line items]
Associate name		Arvedi Metalfer do Brasil
Number of common shares held by CSN		46,994,971
Direct equity interest, subsidiary		20.00%
Direct equity interest, associate			20.00%
Assets		R$ 43,653	R$ 53,101
Liabilities		23,978	48,258
Shareholders' equity		19,675	4,843
Profit (loss) for the year		(4,368)	1,372
Associate
Disclosure of fair value measurement of assets [line items]
Assets		43,653	53,101
Liabilities		23,978	48,258
Shareholders' equity		19,675	4,843
Profit (loss) for the year		(4,368)	1,372
Subsidiary
Disclosure of fair value measurement of assets [line items]
Assets		32,970,414	35,404,795
Liabilities		18,184,392	19,629,927
Shareholders' equity		16,909,529	17,952,324
Profit (loss) for the year		827,193	(396,986)
Shareholders' Equity
Others investments
Revenue from subsidiares inventories		(72,473)	(74,459)
Others		63,537	63,541
Others investments		(8,936)	(10,918)
Total Investments		21,528,405	21,684,209
Classification of investments in the balance sheet
Investments		21,528,405	21,684,209
Profit (loss) for the year
Others investments
Revenue from subsidiares inventories		1,985	7,583
Others		(165)	(19,557)
Others investments		1,820	(11,974)
Total Investments		901,836	(370,343)
Classification of investments in the balance sheet
Investments		R$ 901,836	R$ (370,343)

[1] Empresa liquidada em 2016

[2] Fusao das empresas pela controlada CSN Steel S.L.U. em dezembro 2017

[3] Empresa vendida em julho de 2017, para a controlada CSN Mineracao

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8. INVESTMENTS (Details 2) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Investments Details 2
Investments in associates and joint controlled entities, beginning	R$ 4,568,451	R$ 3,998,239
Capital increase/acquisition of shares	20,579	190,651
Dividends	(79,189)	(36,765)
Comprehensive income	850,640	713,442
Equity in results of affiliated companies	147,800	108,031
Amortization of fair value - investment in MRS	(11,746)	(11,746)
Amortization of fair value - investment in CGPAR		(3,940)
Impairment of the Fair Value of Transnordestina		(387,989)
Others	3,460	(1,472)
Investments in associates and joint controlled entities, ending	R$ 5,499,995	R$ 4,568,451

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8. INVESTMENTS (Details 3) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of fair value measurement of assets [line items]
Equity in results of affiliated companies	R$ 147,800	R$ 108,031
Eliminations
To cost of sales	(40,823)	(41,556)
To taxes	13,880	14,129
Others
Amortization of fair value - investment in MRS	(11,746)	(11,746)
Amortization of fair value - investment in CGPAR		(3,940)
Equity in results	109,111	64,918	R$ 1,160,272
MRS Logistica S.A.
Disclosure of fair value measurement of assets [line items]
Equity in results of affiliated companies	171,905	155,617
CBSI - Companhia Brasileira de Servicos de Infraestrutura
Disclosure of fair value measurement of assets [line items]
Equity in results of affiliated companies	1,785	2,953
Transnordestina
Disclosure of fair value measurement of assets [line items]
Equity in results of affiliated companies	(21,357)	(52,127)
Arvedi Metalfer do Brasil
Disclosure of fair value measurement of assets [line items]
Equity in results of affiliated companies	(4,368)	1,372
Others
Disclosure of fair value measurement of assets [line items]
Equity in results of affiliated companies	R$ (165)	R$ 216

XML

8. INVESTMENTS (Details 4) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	R$ 3,411,572	R$ 4,871,162	R$ 7,861,052	R$ 8,686,021
Advances to suppliers	12,514	3,168
Total current assets	11,881,496	12,444,918
Non-current assets
Investments, PP&E and intangible assets	17,964,839	18,135,879	17,826,226
Tota non-current assets	33,328,474	31,708,705
Total assets	45,209,970	44,153,623
Current liabilities
Borrowings and financing	6,526,902	2,117,448
Total current liabilities	10,670,050	5,496,683
Non-current liabilities
Borrowings and financing	22,983,942	28,323,570
Total non-current liabilities	26,251,691	31,272,419
Shareholders' equity	8,288,229	7,384,521	R$ 7,091,288	R$ 5,734,975
Total liabilities and shareholders' equity	45,209,970	44,153,623
Ita Energetica | Joint Operation
Current assets
Cash and cash equivalents	16,231	17,689
Advances to suppliers	22	99
Other current assets	16,447	16,054
Total current assets	32,700	33,842
Non-current assets
Other non-current assets	27,459	29,219
Investments, PP&E and intangible assets	484,406	516,186
Tota non-current assets	511,865	545,405
Total assets	544,565	579,247
Current liabilities
Borrowings and financing	0	0
Other current liabilities	33,666	53,858
Total current liabilities	33,666	53,858
Non-current liabilities
Borrowings and financing	0	0
Other non-current liabilities	3,471	3,020
Total non-current liabilities	3,471	3,020
Shareholders' equity	507,428	522,369
Total liabilities and shareholders' equity	544,565	579,247
Joint Venture | MRS Logistica
Current assets
Cash and cash equivalents	484,978	345,164
Advances to suppliers	14,911	7,452
Other current assets	685,311	406,170
Total current assets	1,185,200	758,786
Non-current assets
Other non-current assets	693,434	598,577
Investments, PP&E and intangible assets	6,277,550	6,215,442
Tota non-current assets	6,970,984	6,814,019
Total assets	8,156,184	7,572,805
Current liabilities
Borrowings and financing	668,947	653,491
Other current liabilities	1,272,365	740,319
Total current liabilities	1,941,312	1,393,810
Non-current liabilities
Borrowings and financing	2,084,422	2,176,357
Other non-current liabilities	575,170	699,830
Total non-current liabilities	2,659,592	2,876,187
Shareholders' equity	3,555,280	3,302,808
Total liabilities and shareholders' equity	8,156,184	7,572,805
Joint Venture | CBSI
Current assets
Cash and cash equivalents	101	2,925
Advances to suppliers	37	951
Other current assets	28,475	19,603
Total current assets	28,613	23,479
Non-current assets
Other non-current assets	974	234
Investments, PP&E and intangible assets	2,423	3,434
Tota non-current assets	3,397	3,668
Total assets	32,010	27,147
Current liabilities
Borrowings and financing	1,411	0
Other current liabilities	25,898	23,034
Total current liabilities	27,309	23,034
Non-current liabilities
Borrowings and financing	0	0
Other non-current liabilities	0	0
Total non-current liabilities	0	0
Shareholders' equity	4,701	4,113
Total liabilities and shareholders' equity	32,010	27,147
Joint Venture | Transnordestina Logistica
Current assets
Cash and cash equivalents	5,763	1,899
Advances to suppliers	0	0
Other current assets	49,494	54,652
Total current assets	55,257	56,551
Non-current assets
Other non-current assets	238,004	261,292
Investments, PP&E and intangible assets	7,927,881	7,407,189
Tota non-current assets	8,165,885	7,668,481
Total assets	8,221,142	7,725,032
Current liabilities
Borrowings and financing	52,691	76,441
Other current liabilities	113,739	134,747
Total current liabilities	166,430	211,188
Non-current liabilities
Borrowings and financing	5,457,768	5,024,404
Other non-current liabilities	434	0
Total non-current liabilities	5,458,202	5,024,404
Shareholders' equity	2,596,510	2,489,440
Total liabilities and shareholders' equity	R$ 8,221,142	R$ 7,725,032

XML

8. INVESTMENTS (Details 5) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of fair value measurement of assets [line items]
Net revenues	R$ 18,524,601	R$ 17,148,949	R$ 15,261,697
Cost of sales and services	13,596,141	12,640,042	11,740,101
Gross profit	4,928,460	4,508,907	3,521,596
Operating (expense) income	(1,944,495)	(2,563,431)	1,528,907
Finance income (costs), net	(2,463,627)	(2,522,427)	(3,365,162)
Income before income tax and social contribution	520,338	(576,951)	1,685,341
Current and deferred income tax and social contribution	409,109	266,546	2,903,216
Profit (loss) for the year	(111,229)	853,058	R$ 1,215,964
Ita Energetica | Joint Operation
Disclosure of fair value measurement of assets [line items]
Net revenues	168,194	172,263
Cost of sales and services	(76,810)	(91,568)
Gross profit	91,384	80,695
Operating (expense) income	(58,465)	(54,616)
Finance income (costs), net	317	397
Income before income tax and social contribution	33,236	26,476
Current and deferred income tax and social contribution	(11,105)	(8,854)
Profit (loss) for the year	22,131	17,622
Joint Venture | MRS Logistica
Disclosure of fair value measurement of assets [line items]
Net revenues	3,492,805	3,279,420
Cost of sales and services	(2,307,108)	(2,208,786)
Gross profit	1,185,697	1,070,634
Operating (expense) income	(283,151)	(160,187)
Finance income (costs), net	(187,295)	(249,300)
Income before income tax and social contribution	715,251	661,147
Current and deferred income tax and social contribution	(254,001)	(243,602)
Profit (loss) for the year	461,250	417,545
Joint Venture | CBSI
Disclosure of fair value measurement of assets [line items]
Net revenues	135,399	122,870
Cost of sales and services	(120,647)	(105,692)
Gross profit	14,752	17,178
Operating (expense) income	(8,340)	(8,367)
Finance income (costs), net	(1,004)	(1,676)
Income before income tax and social contribution	5,408	7,135
Current and deferred income tax and social contribution	(1,838)	(1,229)
Profit (loss) for the year	3,570	5,906
Joint Venture | Transnordestina Logistica
Disclosure of fair value measurement of assets [line items]
Net revenues	0	0
Cost of sales and services	0	0
Gross profit	0	0
Operating (expense) income	(32,245)	(97,596)
Finance income (costs), net	(13,938)	(6,032)
Income before income tax and social contribution	(46,183)	103,628
Current and deferred income tax and social contribution	0	0
Profit (loss) for the year	R$ (46,183)	R$ 103,628

XML

8. INVESTMENTS (Details 6)

12 Months Ended

Dec. 31, 2017

Gross Margin

Disclosure of fair value measurement of assets [line items]

Main assumptions (Until 2057)

Based on market studies to capture operations costs and loads, according studied of market trends.

Estimated Costs

Disclosure of fair value measurement of assets [line items]

Main assumptions (Until 2057)

Costs based on studies and market trends.

Growth rate in perpetuity

Disclosure of fair value measurement of assets [line items]

Main assumptions (Until 2057)

Growth rate was not considered due to the projection model until the end of the concession.

Discount rate

Disclosure of fair value measurement of assets [line items]

Main assumptions (Until 2057)

Between 5.1% to 6.25% in real terms.

XML

8. INVESTMENTS (Details Narrative) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of assets [line items]
Expenses	R$ (1,380,193)	R$ (1,254,179)
Consorcio da Usina Hidrelectrica de Igarapava
Disclosure of fair value measurement of assets [line items]
Property, plant and equipment	24,759	25,921
Expenses	R$ 5,966	R$ 6,041

XML

9. PROPERTY, PLANT AND EQUIPMENT (Details) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Cost, beginning		R$ 27,726,117	R$ 26,487,496
Accumulated depreciation, beginning		(9,590,238)	(8,661,270)
Property, plant and equipment, beginning		18,135,879	17,826,226
Effect of foreign exchange differences		107,184	(214,024)
Acquisitions		1,063,746	1,636,131
Capitalized interest		91,957	215,794
Write-offs		(28,057)	(75,245)
Depreciation		(1,380,193)	(1,254,179)
Transfers to other asset categories
Transfers to intangible assets		(26,183)	(16,538)
Acquisition control - CGPAR			8,141
Goodwill - Acquisition control CGPAR			57,889
Transfers of metalic - Held for sale			(45,017)
Others		506	(3,296)
Property, plant and equipment, ending		17,964,839	18,135,879
Cost, ending		29,083,214	27,726,117
Accumulated depreciation, ending		(11,118,375)	(9,590,238)
Land
Disclosure of detailed information about property, plant and equipment [line items]
Cost, beginning		264,629	263,539
Accumulated depreciation, beginning
Property, plant and equipment, beginning		264,629	263,539
Effect of foreign exchange differences		8,702	(13,348)
Acquisitions		8,241	4
Capitalized interest
Write-offs		653	(144)
Depreciation			0
Transfers to other asset categories		(2,485)	14,951
Transfers to intangible assets
Acquisition control - CGPAR
Goodwill - Acquisition control CGPAR
Transfers of metalic - Held for sale			(373)
Others
Property, plant and equipment, ending		279,740	264,629
Cost, ending		279,740	264,629
Accumulated depreciation, ending
Buildings and Infrastructure
Disclosure of detailed information about property, plant and equipment [line items]
Cost, beginning		3,637,903	3,429,573
Accumulated depreciation, beginning		(822,224)	(740,332)
Property, plant and equipment, beginning		2,815,679	2,689,241
Effect of foreign exchange differences		21,737	(38,538)
Acquisitions		1,196	100
Capitalized interest
Write-offs		30,634	(2,723)
Depreciation		(156,580)	(116,760)
Transfers to other asset categories		84,281	298,121
Transfers to intangible assets
Acquisition control - CGPAR
Goodwill - Acquisition control CGPAR
Transfers of metalic - Held for sale			(13,466)
Others			(296)
Property, plant and equipment, ending		2,796,947	2,815,679
Cost, ending		3,819,929	3,637,903
Accumulated depreciation, ending		(1,022,982)	(822,224)
Machinery, equipment and facilities
Disclosure of detailed information about property, plant and equipment [line items]
Cost, beginning		20,712,371	18,601,088
Accumulated depreciation, beginning		(8,342,741)	(7,528,844)
Property, plant and equipment, beginning		12,369,630	11,072,244
Effect of foreign exchange differences		72,811	(149,908)
Acquisitions		91,251	205,488
Capitalized interest
Write-offs		(30,383)	(10,423)
Depreciation		(1,174,852)	(1,096,668)
Transfers to other asset categories		659,119	2,318,728
Transfers to intangible assets
Acquisition control - CGPAR			7,377
Goodwill - Acquisition control CGPAR			57,889
Transfers of metalic - Held for sale			(30,440)
Others		(1,656)	(4,657)
Property, plant and equipment, ending		11,985,920	12,369,630
Cost, ending		21,674,362	20,712,371
Accumulated depreciation, ending		(9,688,442)	(8,342,741)
Furniture and fixtures
Disclosure of detailed information about property, plant and equipment [line items]
Cost, beginning		173,821	182,830
Accumulated depreciation, beginning		(140,658)	(144,100)
Property, plant and equipment, beginning		33,163	38,730
Effect of foreign exchange differences		593	(915)
Acquisitions		1,171	867
Capitalized interest
Write-offs		(37)	(77)
Depreciation		(5,656)	(5,822)
Transfers to other asset categories		3,869	444
Transfers to intangible assets
Acquisition control - CGPAR			189
Goodwill - Acquisition control CGPAR
Transfers of metalic - Held for sale			(208)
Others			(45)
Property, plant and equipment, ending		33,103	33,163
Cost, ending		164,152	173,821
Accumulated depreciation, ending		(131,049)	(140,658)
Construction in progress
Disclosure of detailed information about property, plant and equipment [line items]
Cost, beginning		2,260,864	3,199,386
Accumulated depreciation, beginning
Property, plant and equipment, beginning		2,260,864	3,199,386
Effect of foreign exchange differences		3,076	(8,345)
Acquisitions		951,796	1,412,685
Capitalized interest		91,957	215,794
Write-offs		(2,536)	(41,093)
Depreciation
Transfers to other asset categories		(805,207)	(2,502,615)
Transfers to intangible assets		(26,183)	(16,538)
Acquisition control - CGPAR
Goodwill - Acquisition control CGPAR
Transfers of metalic - Held for sale			(261)
Others		2,168	1,851
Property, plant and equipment, ending		2,475,935	2,260,864
Cost, ending		2,475,935	2,260,864
Accumulated depreciation, ending
Other
Disclosure of detailed information about property, plant and equipment [line items]
Cost, beginning	[1]	676,529	811,080
Accumulated depreciation, beginning	[1]	(284,615)	(247,994)
Property, plant and equipment, beginning	[1]	391,914	563,086
Effect of foreign exchange differences	[1]	265	(2,973)
Acquisitions	[1]	10,091	16,987
Capitalized interest	[1]
Write-offs	[1]	(26,388)	(20,785)
Depreciation	[1]	(43,105)	(34,929)
Transfers to other asset categories	[1]	60,423	(129,629)
Transfers to intangible assets	[1]
Acquisition control - CGPAR	[1]		575
Goodwill - Acquisition control CGPAR	[1]
Transfers of metalic - Held for sale	[1]		(269)
Others	[1]	(6)	(149)
Property, plant and equipment, ending	[1]	393,194	391,914
Cost, ending	[1]	669,096	676,529
Accumulated depreciation, ending	[1]	R$ (275,902)	R$ (284,615)

[1] Refer basically to railway assets such as courtyards, tracks and leasehold improvements, vehicles, hardware, mines, ore deposits, and spare part inventories.

XML

9. PROPERTY, PLANT AND EQUIPMENT (Details 1) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress		R$ 2,475,935	R$ 2,260,864
Logistics
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress		106,956	103,284
Logistics | Current investments to maintain current operations at their full capacity
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress		106,956	103,284
Mining
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress		1,435,332	1,203,761
Mining | Current investments to maintain current operations at their full capacity
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress		R$ 408,522	261,056
Mining | Expansion of Casa de Pedra Mine capacity production
Disclosure of detailed information about property, plant and equipment [line items]
Start date	[1]	2007
Completion date	[1]	2020
Construction in progress	[1]	R$ 750,999	689,160
Mining | Expansion of TECAR export capacity
Disclosure of detailed information about property, plant and equipment [line items]
Start date	[2]	2009
Completion date	[2]	2022
Construction in progress	[2]	R$ 275,811	253,545
Steel
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress		327,512	399,227
Steel | Current investments to maintain current operations at their full capacity
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress	[3]	R$ 228,029	307,448
Steel | Supply of 16 torpedo's cars for operation in the steel industry
Disclosure of detailed information about property, plant and equipment [line items]
Start date		2008
Completion date		2019
Construction in progress		R$ 99,483	91,779
Cement
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress		606,135	554,592
Cement | Current investments to maintain current operations at their full capacity
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress	[4]	R$ 51,270	24,961
Cement | Construction of cement plants
Disclosure of detailed information about property, plant and equipment [line items]
Start date	[4]	2011
Completion date	[4]	2020
Construction in progress		R$ 554,865	R$ 529,631

[1] Estimated completion date of the Central Plant Step 1

[2] Estimated completion date of phase 60 Mtpa

[3] Refers substantially to the reforming of batteries for coke ovens and reuse of the carbochemical cooling waters

[4] Refers substantially to the acquisition of new Integrated Cement Plants

XML

9. PROPERTY, PLANT AND EQUIPMENT (Details 2)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Buildings
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	39 years	41 years
Machinery, equipment and facilities
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	21 years	18 years
Furniture and fixtures
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	12 years	12 years
Other
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	17 years	14 years

XML

9. PROPERTY, PLANT AND EQUIPMENT (Details 3)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Unspecified projects
Disclosure of detailed information about property, plant and equipment [line items]
Capitalized borrowing costs rate (in percent)	8.63%	10.48%

XML

9. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Unspecified projects
Disclosure of detailed information about property, plant and equipment [line items]
Capitalized borrowing costs	R$ 91,957	R$ 215,794

XML

10. INTANGIBLE ASSETS (Details) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about intangible assets [line items]
Cost, beginning		R$ 7,764,371	R$ 8,026,315
Accumulated amortization, beginning		(396,637)	(494,719)
Adjustment for accumulated recoverable value, beginning		(109,330)	(109,330)
Intangible assets, beginning		7,258,404	7,422,266
Effect of foreign exchange differences		60,105	(101,922)
Acquisitions and expenditures		622	3,119
Transfer of property, plant and equipment		26,183	16,538
Write-offs/disposals		(70)	(13,094)
Amortization		(73,142)	(68,318)
Aquisition control - CGPAR		(56)	47
Transfer of Metalic - Held for sale			(232)
Intangible assets, ending		7,272,046	7,258,404
Cost, ending		7,834,751	7,764,371
Accumulated amortization, ending		(453,375)	(396,637)
Adjustment for accumulated recoverable value, ending		(109,330)	(109,330)
Goodwill
Disclosure of detailed information about intangible assets [line items]
Cost, beginning		3,834,234	3,974,128
Accumulated amortization, beginning		(133,973)	(260,776)
Adjustment for accumulated recoverable value, beginning		(109,330)	(109,330)
Intangible assets, beginning		3,590,931	3,604,022
Effect of foreign exchange differences
Acquisitions and expenditures
Transfer of property, plant and equipment
Write-offs/disposals			(13,091)
Amortization
Aquisition control - CGPAR
Transfer of Metalic - Held for sale
Intangible assets, ending		3,590,931	3,590,931
Cost, ending		3,834,234	3,834,234
Accumulated amortization, ending		(133,973)	(133,973)
Adjustment for accumulated recoverable value, ending		(109,330)	(109,330)
Customer relationships
Disclosure of detailed information about intangible assets [line items]
Cost, beginning		444,635	549,302
Accumulated amortization, beginning		(146,975)	(136,026)
Adjustment for accumulated recoverable value, beginning
Intangible assets, beginning		297,660	413,276
Effect of foreign exchange differences		41,916	(74,167)
Acquisitions and expenditures
Transfer of property, plant and equipment
Write-offs/disposals
Amortization		(38,701)	(41,449)
Aquisition control - CGPAR
Transfer of Metalic - Held for sale
Intangible assets, ending		300,875	297,660
Cost, ending		513,068	444,635
Accumulated amortization, ending		(212,193)	(146,975)
Adjustment for accumulated recoverable value, ending
Software
Disclosure of detailed information about intangible assets [line items]
Cost, beginning		183,166	173,154
Accumulated amortization, beginning		(114,913)	(97,917)
Adjustment for accumulated recoverable value, beginning
Intangible assets, beginning		68,253	75,237
Effect of foreign exchange differences		183	(236)
Acquisitions and expenditures		622	2,995
Transfer of property, plant and equipment		26,183	16,538
Write-offs/disposals		(70)	(3)
Amortization		(21,986)	(26,093)
Aquisition control - CGPAR			47
Transfer of Metalic - Held for sale			(232)
Intangible assets, ending		73,185	68,253
Cost, ending		167,162	183,166
Accumulated amortization, ending		(93,977)	(114,913)
Adjustment for accumulated recoverable value, ending
Trademark and patents
Disclosure of detailed information about intangible assets [line items]
Cost, beginning		116,196	143,636
Accumulated amortization, beginning
Adjustment for accumulated recoverable value, beginning
Intangible assets, beginning		116,196	143,636
Effect of foreign exchange differences		17,941	(27,440)
Acquisitions and expenditures
Transfer of property, plant and equipment
Write-offs/disposals
Amortization
Aquisition control - CGPAR
Transfer of Metalic - Held for sale
Intangible assets, ending		134,137	116,196
Cost, ending		134,137	116,196
Accumulated amortization, ending
Adjustment for accumulated recoverable value, ending
Rights and licenses
Disclosure of detailed information about intangible assets [line items]
Cost, beginning	[1]	3,185,700	3,185,700
Accumulated amortization, beginning	[1]	(776)
Adjustment for accumulated recoverable value, beginning	[1]
Intangible assets, beginning	[1]	3,184,924	3,185,700
Effect of foreign exchange differences	[1]
Acquisitions and expenditures	[1]
Transfer of property, plant and equipment	[1]
Write-offs/disposals	[1]
Amortization	[1]	(12,455)	(776)
Aquisition control - CGPAR	[1]
Transfer of Metalic - Held for sale	[1]
Intangible assets, ending	[1]	3,172,469	3,184,924
Cost, ending	[1]	3,185,701	3,185,700
Accumulated amortization, ending	[1]	(13,232)	(776)
Adjustment for accumulated recoverable value, ending	[1]
Others
Disclosure of detailed information about intangible assets [line items]
Cost, beginning		440	395
Accumulated amortization, beginning
Adjustment for accumulated recoverable value, beginning
Intangible assets, beginning		440	395
Effect of foreign exchange differences		65	(79)
Acquisitions and expenditures			124
Transfer of property, plant and equipment
Write-offs/disposals
Amortization
Aquisition control - CGPAR		(56)
Transfer of Metalic - Held for sale
Intangible assets, ending		449	440
Cost, ending		449	440
Accumulated amortization, ending
Adjustment for accumulated recoverable value, ending

[1] Composed mainly by mineral rights with estimated resources of 1,101 million tons. Corresponding amortization is recorded based on production volumes.

XML

10. INTANGIBLE ASSETS (Details 1)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Software
Disclosure of detailed information about intangible assets [line items]
Estimated useful life	8 years	8 years
Customer relationships
Disclosure of detailed information about intangible assets [line items]
Estimated useful life	13 years	13 years

XML

10. INTANGIBLE ASSETS (Details 2) - BRL (R$) R$ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about intangible assets [line items]
Goodwill		R$ 3,590,931	R$ 3,590,931
Trademarks		134,137	116,196
Total		3,725,068	3,707,127
Packaging
Disclosure of detailed information about intangible assets [line items]
Goodwill		158,748	158,748
Trademarks
Total		158,748	158,748
Long steel
Disclosure of detailed information about intangible assets [line items]
Goodwill	[1]	235,595	235,595
Trademarks	[1]	134,137	116,196
Total	[1]	369,732	351,791
Mining
Disclosure of detailed information about intangible assets [line items]
Goodwill	[2]	3,196,588	3,196,588
Trademarks	[2]
Total	[2]	R$ 3,196,588	R$ 3,196,588

[1] The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows.

[2] Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineracao, an operation that was concluded in December 2015. From 2016, the balance started to be tested annually for impairment analysis.

XML

10. INTANGIBLE ASSETS (Details 3)

12 Months Ended

Dec. 31, 2017

Metal packaging

Disclosure of detailed information about intangible assets [line items]

Measurement of recoverable value

Discounted Cash Flow

Cash flow projection

Until 2028

Gross Margin

Gross margin updated based on historical data, impacts of business restructuring and market trends.

Cost Actualization

Cost based on historical data of each product and impacts of business restructuring.

Growth rate

Without growth in real terms, only updated by long term inflation of 4.0% .

Discount rate

These cash flows were considered using a discount rate after taxes between 7% and 13% in real terms. The discount rate was based on the weighted average cost of capital ("WACC") that reflects the specific risk of each segment.

Long steel

Disclosure of detailed information about intangible assets [line items]

Measurement of recoverable value

Discounted Cash Flow

^[1]

Cash flow projection

Until 2028

^[1]

Gross Margin

Gross margin updated based on historical data and market trends.

^[1]

Cost Actualization

Costs based on historical data and market trends.

^[1]

Growth rate

Without growth in real terms, only updated by long term inflation of 2.0% , Euro zone.

^[1]

Discount rate

These cash flows were considered using a discount rate after taxes between 7% and 13% in real terms. The discount rate was based on the weighted average cost of capital ("WACC") that reflects the specific risk of each segment.

^[1]

Mining

Disclosure of detailed information about intangible assets [line items]

Measurement of recoverable value

Discounted Cash Flow

Cash flow projection

Until 2056

Gross Margin

Average of the gross margin of each Cash generating units based on the history and projections to the next 39 years and long-term price and exchange rate curves from industry reports.

Cost Actualization

Costs based on historical data, mix of products and market trends.

Growth rate

The growth rate was not considered.

Discount rate

These cash flows were considered using a discount rate after taxes between 7% and 13% in real terms. The discount rate was based on the weighted average cost of capital ("WACC") that reflects the specific risk of each segment.

[1] Refer to assets of subsidiary SWT, located in Germany. The discount rate was applied on the discounted cash flow prepared in Euros, the functional currency of this subsidiary.

XML

11. BORROWINGS, FINANCING AND DEBENTURES (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about borrowings [line items]
Borrowings and financing, current	R$ 6,551,764	R$ 2,150,951
Borrowings and financing, noncurrent	23,017,953	28,382,802
Transaction costs and issue premiums, current	(24,862)	(33,503)
Transaction costs and issue premiums, noncurrent	(34,011)	(59,232)
Borrowings and financing and transaction costs, current	6,526,902	2,117,448
Borrowings and financing and transaction costs, noncurrent	22,983,942	28,323,570
Foreign Currency
Disclosure of detailed information about borrowings [line items]
Borrowings and financing, current	1,566,302	787,291
Borrowings and financing, noncurrent	R$ 13,214,981	13,820,151
Foreign Currency | Prepayment
Disclosure of detailed information about borrowings [line items]
Rates	1% to 3.5%
Borrowings and financing, current	R$ 2,174	110,944
Borrowings and financing, noncurrent	R$ 489,584	482,347
Foreign Currency | Prepayment
Disclosure of detailed information about borrowings [line items]
Rates	3.51% to 8%
Borrowings and financing, current	R$ 788,989	438,802
Borrowings and financing, noncurrent	R$ 3,607,925	4,290,062
Foreign Currency | Perpetual bonds
Disclosure of detailed information about borrowings [line items]
Rates	7%
Borrowings and financing, current	R$ 4,503	4,436
Borrowings and financing, noncurrent	R$ 3,308,000	3,259,100
Foreign Currency | Fixed rate notes
Disclosure of detailed information about borrowings [line items]
Rates	4.14% to 10%
Borrowings and financing, current	R$ 139,184	137,126
Borrowings and financing, noncurrent	R$ 5,612,342	5,529,380
Foreign Currency | Advance contract exchange (ACC)
Disclosure of detailed information about borrowings [line items]
Rates	3.135%
Borrowings and financing, current	R$ 379,822
Borrowings and financing, noncurrent
Foreign Currency | Others
Disclosure of detailed information about borrowings [line items]
Rates	1.2% to 8%
Borrowings and financing, current	R$ 251,630	95,983
Borrowings and financing, noncurrent	197,130	259,262
Local Currency
Disclosure of detailed information about borrowings [line items]
Borrowings and financing, current	4,985,462	1,363,660
Borrowings and financing, noncurrent	R$ 9,802,972	14,562,651
Local Currency | Prepayment
Disclosure of detailed information about borrowings [line items]
Rates	109.5% to 116.5% of CDI and fixed rate of 8%
Borrowings and financing, current	R$ 1,789,737	570,778
Borrowings and financing, noncurrent	R$ 3,378,333	5,080,000
Local Currency | BNDES/FINAME
Disclosure of detailed information about borrowings [line items]
Rates	1,3% + TJLP and fixed rate 2.5% to 6% + 1,5%
Borrowings and financing, current	R$ 71,121	73,736
Borrowings and financing, noncurrent	R$ 960,872	1,012,268
Local Currency | Debentures
Disclosure of detailed information about borrowings [line items]
Rates	110.8% to 113.7% of CDI
Borrowings and financing, current	R$ 523,252	538,003
Borrowings and financing, noncurrent	R$ 770,767	1,270,383
Local Currency | CCB
Disclosure of detailed information about borrowings [line items]
Rates	112.5% and 113% of CDI
Borrowings and financing, current	R$ 2,601,352	181,143
Borrowings and financing, noncurrent	R$ 4,693,000	R$ 7,200,000

XML

11. BORROWINGS, FINANCING AND DEBENTURES (Details 1) - BRL (R$) R$ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 22,983,942	R$ 28,323,570
Maturity percent		100.00%
2019
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 7,239,968
Maturity percent		31.00%
2019 | Prepayment
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 2,824,551
2019 | Bonds
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing	[1]	2,238,034
2019 | CCB
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		1,507,000
2019 | Others
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		670,383
2020
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 7,572,510
Maturity percent		33.00%
2020 | Prepayment
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 2,409,959
2020 | Bonds
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing	[1]	3,374,308
2020 | CCB
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		1,508,000
2020 | Others
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		280,243
2021
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 2,228,628
Maturity percent		10.00%
2021 | Prepayment
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 1,276,969
2021 | CCB
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		774,000
2021 | Others
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		177,659
2022
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 1,843,847
Maturity percent		8.00%
2022 | Prepayment
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 964,363
2022 | CCB
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		784,000
2022 | Others
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		95,484
2023
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 176,631
Maturity percent		1.00%
2023 | CCB
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 120,000
2023 | Others
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		56,631
After 2023
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 648,369
Maturity percent		3.00%
After 2023 | Others
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 648,369
Perpetual bonds
Disclosure of detailed information about borrowings [line items]
Maturities of borrowings and financing		R$ 3,308,000
Maturity percent		14.00%

[1] In February 2018, the Company concluded the renegotiation of its debt with Banco do Brasil S.A ("BB"), as well as the issuance of debt instruments and repurchase of US$350 million (Tender Offer), as described in more detail in note 31 - Events subsequent.

XML

11. BORROWINGS, FINANCING AND DEBENTURES (Details 2) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Borrowings Financing And Debentures Details 2
New funding transactions and amortization, beginning		R$ 30,441,018	R$ 34,282,515
Funding Transactions		538,771	30,034
Forfaiting funding / Drawee Risk			78,240
Repayment		(1,528,023)	(695,938)
Payments - Forfaiting / Drawee Risk			(407,155)
Payment of interest and other charges		(2,634,931)	(3,044,342)
Payment of interest and other charges - Forfaiting / Drawee			(5,694)
Provision of interest and other charges		2,438,555	3,156,120
Provision of charges - Forfaiting / Drawee Risk			4,237
Others	[1]	255,454	(2,956,999)
New funding transactions and amortization, ending		R$ 29,510,844	R$ 30,441,018

[1] Includes unrealized monetary and foreign exchange variations.

XML

11. BORROWINGS, FINANCING AND DEBENTURES (Details 3) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
Disclosure of detailed information about borrowings [line items]
Amount	R$ 538,771
Amortized loan 1
Disclosure of detailed information about borrowings [line items]
Financial institution	BANCO MERCEDEZ BENS
Date	August/17
Amount	R$ 4,265
Maturity	October/21
Amortized loan 2
Disclosure of detailed information about borrowings [line items]
Financial institution	BB
Date	September/17
Amount	R$ 171,000
Maturity	may/18
Amortized loan 3
Disclosure of detailed information about borrowings [line items]
Financial institution	JP MORGAN
Date	November/17
Amount	R$ 163,506
Maturity	November/18
Amortized loan 4
Disclosure of detailed information about borrowings [line items]
Financial institution	BB	[1]
Date	December 2017	[1]
Amount	R$ 200,000	[1]
Maturity	February/18	[1]

[1] The operation was amortized in February 02, 2018

XML

11. BORROWINGS, FINANCING AND DEBENTURES (Details 4) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about borrowings [line items]
Payment of Principal	R$ 1,528,023
Debt charges	2,634,931	R$ 3,050,036	R$ 2,964,826
Bonds
Disclosure of detailed information about borrowings [line items]
Payment of Principal	0
Debt charges	578,482
Fixed Rate Notes
Disclosure of detailed information about borrowings [line items]
Payment of Principal	90,028
Debt charges	12,736
Debentures
Disclosure of detailed information about borrowings [line items]
Payment of Principal	479,617
Debt charges	201,118
Bank Credit Bill
Disclosure of detailed information about borrowings [line items]
Payment of Principal	0
Debt charges	869,717
Export Credit Note
Disclosure of detailed information about borrowings [line items]
Payment of Principal	400,000
Debt charges	668,325
Pre - Export Payment
Disclosure of detailed information about borrowings [line items]
Payment of Principal	490,803
Debt charges	226,894
BNDES/FINAME
Disclosure of detailed information about borrowings [line items]
Payment of Principal	67,575
Debt charges	75,539
Advance contract exchange (ACC)
Disclosure of detailed information about borrowings [line items]
Payment of Principal	0
Debt charges	R$ 2,120

XML

11. BORROWINGS, FINANCING AND DEBENTURES (Details 5) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about borrowings [line items]
Borrowings	R$ 14,948,054	R$ 14,737,550
Tax foreclosure	25,376	26,169
Other	58,714	55,640
Total	15,032,144	14,819,359
Total in US$
Disclosure of detailed information about borrowings [line items]
Borrowings	2,950,000	2,950,000
Total	2,950,000	2,950,000
Total in EUR
Disclosure of detailed information about borrowings [line items]
Borrowings	145,000	145,000
Total	145,000	145,000
Total in R$
Disclosure of detailed information about borrowings [line items]
Borrowings	4,613,905	4,624,637
Tax foreclosure	25,376	26,169
Other	58,714	55,640
Total	4,697,995	4,706,446
Total in R$
Disclosure of detailed information about borrowings [line items]
Borrowings	10,334,149	10,112,913
Total	R$ 10,334,149	10,112,913
Transnordestina Logisitca
Disclosure of detailed information about borrowings [line items]
Currency	R$
Maturities	Up to 09/19/2056 and Indefinite
Borrowings	R$ 2,541,347	2,547,937
Tax foreclosure	22,214	23,007
Other	3,866	4,866
Total	R$ 2,567,427	2,575,810
FTL - Ferrovia Transnordestina
Disclosure of detailed information about borrowings [line items]
Currency	R$
Maturities	11/15/2020
Borrowings	R$ 69,405	76,700
Total	R$ 69,405	76,700
Sepetiba Tecon
Disclosure of detailed information about borrowings [line items]
Currency	R$
Maturities	Indefinite
Other	R$ 36,308	28,914
Total	R$ 36,308	28,914
Cia Metalurgica Prada
Disclosure of detailed information about borrowings [line items]
Currency	R$
Maturities	Indefinite
Tax foreclosure	R$ 333	333
Other	18,540	19,340
Total	R$ 18,873	19,673
CSN Energia
Disclosure of detailed information about borrowings [line items]
Currency	R$
Maturities	Indefinite
Tax foreclosure	R$ 2,829	2,829
Total	R$ 2,829	2,829
CSN Mineracao
Disclosure of detailed information about borrowings [line items]
Currency	R$
Maturities	09/22/2022
Borrowings	R$ 2,000,000	2,000,000
Other		2,520
Total	R$ 2,000,000	2,002,520
Estanho de Rondonia
Disclosure of detailed information about borrowings [line items]
Currency	R$
Maturities	07/15/2022
Borrowings	R$ 3,153
Total	R$ 3,153
CSN Islands XI
Disclosure of detailed information about borrowings [line items]
Currency	US$
Maturities	09/21/2019
CSN Islands XI | USD
Disclosure of detailed information about borrowings [line items]
Borrowings	R$ 750,000	750,000
Total	R$ 750,000	750,000
CSN Islands XII
Disclosure of detailed information about borrowings [line items]
Currency	US$
Maturities	Perpetual
CSN Islands XII | USD
Disclosure of detailed information about borrowings [line items]
Borrowings	R$ 1,000,000	1,000,000
Total	R$ 1,000,000	1,000,000
CSN Resources
Disclosure of detailed information about borrowings [line items]
Currency	US$
Maturities	07/21/2020
CSN Resources | USD
Disclosure of detailed information about borrowings [line items]
Borrowings	R$ 1,200,000	1,200,000
Total	R$ 1,200,000	1,200,000
CSN Steel S.L.
Disclosure of detailed information about borrowings [line items]
Currency	EUR
Maturities	01/31/2020
CSN Steel S.L. | EUR
Disclosure of detailed information about borrowings [line items]
Borrowings	R$ 120,000	120,000
Total	R$ 120,000	120,000
Lusosider Acos Planos
Disclosure of detailed information about borrowings [line items]
Currency	EUR
Maturities	Indefinite
Lusosider Acos Planos | EUR
Disclosure of detailed information about borrowings [line items]
Borrowings	R$ 25,000	25,000
Total	R$ 25,000	R$ 25,000

XML

11. BORROWINGS, FINANCING AND DEBENTURES (Details Narrative) R$ in Thousands	Dec. 31, 2017 BRL (R$)
Borrowings Financing And Debentures Details Narrative
Accrued commision on risk assumption	R$ 30,843

XML

12. FINANCIAL INSTRUMENTS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Available for sale assets	R$ 2,222,433	R$ 1,374,268
Fair value of assets through profit loss	2,952	5,264
Loans and receivables	6,921,521	8,031,434
Other assets measured at amortized costs	41,528	37,679
Total assets	9,188,434	9,448,645
Fair value of liabilities through profit loss		121
Other liabilities measured at amortized costs	32,541,183	32,781,529
Total liabilities	32,541,183	32,781,650
Current assets
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss	2,952	5,264
Loans and receivables	6,346,803	7,536,183
Other assets measured at amortized costs	41,528	37,679
Total assets	6,391,283	7,579,126
Current assets | Cash and cash equivalants
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss
Loans and receivables	3,411,572	4,871,162
Other assets measured at amortized costs
Total assets	3,411,572	4,871,162
Current assets | Short-term investments
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss
Loans and receivables	735,712	760,391
Other assets measured at amortized costs
Total assets	735,712	760,391
Current assets | Trade receivables
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss
Loans and receivables	2,197,078	1,904,630
Other assets measured at amortized costs
Total assets	2,197,078	1,904,630
Current assets | Derivative financial instruments
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss		2,298
Loans and receivables
Other assets measured at amortized costs
Total assets		2,298
Current assets | Trading securities
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss	2,952	2,966
Loans and receivables
Other assets measured at amortized costs
Total assets	2,952	2,966
Current assets | Dividends receivable
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss
Loans and receivables
Other assets measured at amortized costs	41,528	37,679
Total assets	41,528	37,679
Non-current assets
Disclosure of detailed information about financial instruments [line items]
Available for sale assets	2,222,433	1,374,268
Fair value of assets through profit loss
Loans and receivables	574,718	495,251
Other assets measured at amortized costs
Total assets	2,797,151	1,869,519
Non-current assets | Other trade receivables
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss
Loans and receivables	20,024	15,291
Other assets measured at amortized costs
Total assets	20,024	15,291
Non-current assets | Investments
Disclosure of detailed information about financial instruments [line items]
Available for sale assets	2,222,433	1,374,268
Fair value of assets through profit loss
Loans and receivables
Other assets measured at amortized costs
Total assets	2,222,433	1,374,268
Non-current assets | Loans - related parties
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Fair value of assets through profit loss
Loans and receivables	554,694	479,960
Other assets measured at amortized costs
Total assets	554,694	479,960
Current liabilities
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit loss		121
Other liabilities measured at amortized costs	9,523,230	4,398,727
Total liabilities	9,523,230	4,398,848
Current liabilities | Derivative financial instruments
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit loss		121
Other liabilities measured at amortized costs
Total liabilities		121
Current liabilities | Borrowings and financing
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit loss
Other liabilities measured at amortized costs	6,551,764	2,150,951
Total liabilities	6,551,764	2,150,951
Current liabilities | Trade payables
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit loss
Other liabilities measured at amortized costs	2,460,774	1,763,206
Total liabilities	2,460,774	1,763,206
Current liabilities | Dividends and JCP
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit loss
Other liabilities measured at amortized costs	510,692	484,570
Total liabilities	510,692	484,570
Non-current liabilities
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit loss
Other liabilities measured at amortized costs	23,017,953	28,382,802
Total liabilities	23,017,953	28,382,802
Non-current liabilities | Borrowings and financing
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit loss
Other liabilities measured at amortized costs	23,017,953	28,382,802
Total liabilities	R$ 23,017,953	R$ 28,382,802

XML

12. FINANCIAL INSTRUMENTS (Details 1) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Available for sale assets	R$ 2,222,433	R$ 1,374,268
Total assets	9,188,434	9,448,645
Fair value of liabilities through profit or loss		121
Total liabilities	32,541,183	32,781,650
Current assets
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Total assets	6,391,283	7,579,126
Current assets | Derivative financial instruments
Disclosure of detailed information about financial instruments [line items]
Fair value of assets through profit or loss		2,298
Available for sale assets
Total assets		2,298
Current assets | Derivative financial instruments | Level 1
Disclosure of detailed information about financial instruments [line items]
Fair value of assets through profit or loss
Current assets | Derivative financial instruments | Level 2
Disclosure of detailed information about financial instruments [line items]
Fair value of assets through profit or loss		2,298
Current assets | Trading securities
Disclosure of detailed information about financial instruments [line items]
Fair value of assets through profit or loss	2,952	2,966
Available for sale assets
Total assets	2,952	2,966
Current assets | Trading securities | Level 1
Disclosure of detailed information about financial instruments [line items]
Fair value of assets through profit or loss	2,952	2,966
Current assets | Trading securities | Level 2
Disclosure of detailed information about financial instruments [line items]
Fair value of assets through profit or loss
Non-current assets
Disclosure of detailed information about financial instruments [line items]
Available for sale assets	2,222,433	1,374,268
Total assets	2,797,151	1,869,519
Non-current assets | Investments
Disclosure of detailed information about financial instruments [line items]
Fair value of assets through profit or loss
Available for sale assets	2,222,433	1,374,268
Total assets	2,222,433	1,374,268
Non-current assets | Investments | Level 1
Disclosure of detailed information about financial instruments [line items]
Available for sale assets	2,222,433	1,374,268
Non-current assets | Investments | Level 2
Disclosure of detailed information about financial instruments [line items]
Available for sale assets
Assets
Disclosure of detailed information about financial instruments [line items]
Total assets	2,225,385	1,379,532
Assets | Level 1
Disclosure of detailed information about financial instruments [line items]
Total assets	2,225,385	1,377,234
Assets | Level 2
Disclosure of detailed information about financial instruments [line items]
Total assets		2,298
Current liabilities
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit or loss		121
Total liabilities	9,523,230	4,398,848
Current liabilities | Derivative financial instruments
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit or loss		121
Total liabilities		121
Current liabilities | Derivative financial instruments | Level 1
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit or loss
Current liabilities | Derivative financial instruments | Level 2
Disclosure of detailed information about financial instruments [line items]
Fair value of liabilities through profit or loss		121
Liabilities
Disclosure of detailed information about financial instruments [line items]
Total liabilities		121
Liabilities | Level 1
Disclosure of detailed information about financial instruments [line items]
Total liabilities
Liabilities | Level 2
Disclosure of detailed information about financial instruments [line items]
Total liabilities		R$ 121

XML

12. FINANCIAL INSTRUMENTS (Details 2) - BRL (R$) R$ / shares in Units, R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Quantity (in shares)	221,437,207	221,437,207
Closing Balance	R$ 2,200,459	R$ 1,353,664
Variation in the carrying amount	R$ 846,795
Common
Disclosure of detailed information about financial instruments [line items]
Quantity (in shares)	107,156,651	107,156,651
Share price	R$ 10.83	R$ 8.26
Closing Balance	R$ 1,160,506	R$ 885,114
Share price variation in the year	R$ 2.57
Variation in the carrying amount	R$ 275,392
Preferred
Disclosure of detailed information about financial instruments [line items]
Quantity (in shares)	114,280,556	114,280,556
Share price	R$ 9.10	R$ 4.10
Closing Balance	R$ 1,039,953	R$ 468,550
Share price variation in the year	R$ 5.00
Variation in the carrying amount	R$ 571,403

XML

12. FINANCIAL INSTRUMENTS (Details 3) - Dec. 31, 2017 € in Thousands, $ in Thousands	USD ($)	EUR (€)
USD
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	$ (1,025,390)
USD | Foreign exchange exposure
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	(3,343,057)
USD | Cash flow hedge accounting
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	1,317,667
USD | Net Investment hedge accounting
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $
USD | Net foreign exchange exposure
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	(2,025,390)
USD | Perpetual Bonds
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	1,000,000
USD | Borrowings and financing
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	(4,332,686)
USD | Trade payables
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	(97,622)
USD | Other liabilities
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	(3,984)
USD | Total liabilities
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	(4,434,292)
USD | Cash and cash equivalents overseas
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	777,310
USD | Trade receivables
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	310,642
USD | Other assets
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	3,283
USD | Total assets
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | $	$ 1,091,235
Euro
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		€ 2,797
Euro | Foreign exchange exposure
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		(69,203)
Euro | Cash flow hedge accounting
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €
Euro | Net Investment hedge accounting
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		72,000
Euro | Net foreign exchange exposure
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		2,797
Euro | Perpetual Bonds
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €
Euro | Borrowings and financing
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		(73,186)
Euro | Trade payables
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		(1,941)
Euro | Other liabilities
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		(3,368)
Euro | Total liabilities
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		(78,495)
Euro | Cash and cash equivalents overseas
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		2,857
Euro | Trade receivables
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		2,799
Euro | Other assets
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		3,636
Euro | Total assets
Disclosure of detailed information about financial instruments [line items]
Foreign exchange exposure | €		€ 9,292

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12. FINANCIAL INSTRUMENTS (Details 4) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Asset position		R$ 33,435
Liability position		(31,137)
Fair market value of amounts receivable/(payable)		2,177
Impact on finance income (cost)	R$ 28,274	(806,760)
Dollar-to-euro swap
Disclosure of detailed information about financial instruments [line items]
Counterparty name	BNPP
Expiration of operation	3/9/2017
Notional amount		10,250
Asset position		33,435
Liability position		(31,137)
Fair market value of amounts receivable/(payable)		2,298
Impact on finance income (cost)	R$ (229)	(6,467)
Di futuro
Disclosure of detailed information about financial instruments [line items]
Counterparty name	BM&FBovespa
Expiration of operation	1/2/2017
Notional amount		1,641,378
Asset position
Liability position
Fair market value of amounts receivable/(payable)		(121)
Impact on finance income (cost)	R$ 28,503	R$ 5,829

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12. FINANCIAL INSTRUMENTS (Details 5) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Current assets		R$ 2,298
Total assets		2,298
Current liabilities		121
Total liabilities		121
Net finance income	28,274	(806,760)
Dollar-to-euro swap
Disclosure of detailed information about financial instruments [line items]
Current assets		2,298
Total assets		2,298
Current liabilities
Total liabilities
Net finance income	(229)	(6,467)
Di futuro
Disclosure of detailed information about financial instruments [line items]
Current assets
Total assets
Current liabilities		121
Total liabilities		121
Net finance income	R$ 28,503	5,829
Forward dollar
Disclosure of detailed information about financial instruments [line items]
Current assets
Total assets
Current liabilities
Total liabilities
Net finance income		(805,760)
Fixed rate-to-CDI interest rate swap
Disclosure of detailed information about financial instruments [line items]
Current assets
Total assets
Current liabilities
Total liabilities
Net finance income		(299)
CDI-to-fixed rate swap
Disclosure of detailed information about financial instruments [line items]
Current assets
Total assets
Current liabilities
Total liabilities
Net finance income		R$ (63)

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12. FINANCIAL INSTRUMENTS (Details 6) - 12 months ended Dec. 31, 2017 R$ in Thousands, $ in Thousands		BRL (R$)	USD ($) R$ / $
Disclosure of detailed information about hedged items [line items]
Designated amounts | $			$ 1,566,000
Amortized part | $			$ (248,333)
Effect on Result | R$	[1]	R$ 92,140
Impact on Shareholders' equity | R$		R$ (395,524)
Hedging relationship 1
Disclosure of detailed information about hedged items [line items]
Designation date		11/3/2014
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange- R$ vs. US$ spot rate
Hedged period		October 2016 - September 2019
Exchange rate on designation | R$ / $			2.4442
Designated amounts | $			$ 500,000
Amortized part | $			$ (133,334)
Effect on Result | R$	[1]	R$ 53,203
Impact on Shareholders' equity | R$		R$ (316,726)
Hedging relationship 2
Disclosure of detailed information about hedged items [line items]
Designation date		12/1/2014
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		October 2015 - February 2019
Exchange rate on designation | R$ / $			2.5601
Designated amounts | $			$ 175,000
Amortized part | $			$ (114,999)
Effect on Result | R$	[1]	R$ 38,937
Impact on Shareholders' equity | R$		R$ (44,880)
Hedging relationship 3
Disclosure of detailed information about hedged items [line items]
Designation date		12/18/2014
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		May 2020
Exchange rate on designation | R$ / $			2.6781
Designated amounts | $			$ 100,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ (62,990)
Hedging relationship 4
Disclosure of detailed information about hedged items [line items]
Designation date		07/21/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		July 2019 - March 2021
Exchange rate on designation | R$ / $			3.1813
Designated amounts | $			$ 60,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ (7,602)
Hedging relationship 5
Disclosure of detailed information about hedged items [line items]
Designation date		07/23/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		July 2019 - March 2021
Exchange rate on designation | R$ / $			3.285
Designated amounts | $			$ 100,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ (2,300)
Hedging relationship 6
Disclosure of detailed information about hedged items [line items]
Designation date		07/23/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		October 2018 - October 2022
Exchange rate on designation | R$ / $			3.285
Designated amounts | $			$ 30,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ (690)
Hedging relationship 7
Disclosure of detailed information about hedged items [line items]
Designation date		07/24/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		October 2018 - October 2022
Exchange rate on designation | R$ / $			3.3254
Designated amounts | $			$ 100,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ 1,740
Hedging relationship 8
Disclosure of detailed information about hedged items [line items]
Designation date		07/27/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		October 2018 - October 2022
Exchange rate on designation | R$ / $			3.3557
Designated amounts | $			$ 25,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ 1,193
Hedging relationship 9
Disclosure of detailed information about hedged items [line items]
Designation date		07/27/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		October 2018 - October 2022
Exchange rate on designation | R$ / $			3.3557
Designated amounts | $			$ 70,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ 3,339
Hedging relationship 10
Disclosure of detailed information about hedged items [line items]
Designation date		07/27/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		October 2018 - October 2022
Exchange rate on designation | R$ / $			3.3557
Designated amounts | $			$ 30,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ 1,431
Hedging relationship 11
Disclosure of detailed information about hedged items [line items]
Designation date		07/28/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		October 2018 - October 2022
Exchange rate on designation | R$ / $			3.3815
Designated amounts | $			$ 30,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ 2,205
Hedging relationship 12
Disclosure of detailed information about hedged items [line items]
Designation date		8/1/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period	[2]	-
Exchange rate on designation | R$ / $			3.394
Designated amounts | $			$ (9,000)
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ (774)
Hedging relationship 13
Disclosure of detailed information about hedged items [line items]
Designation date		8/3/2015
Hedging instrument		Export prepayments in US$ to third parties
Hedged item		Part of the highly probable future monthly iron ore exports
Type of hedged risk		Foreign exchange - R$ vs. US$ spot rate
Hedged period		October 2018 - October 2022
Exchange rate on designation | R$ / $			3.394
Designated amounts | $			$ 355,000
Amortized part | $
Effect on Result | R$	[1]
Impact on Shareholders' equity | R$		R$ 30,530

[1] The effect on the result was recorded in other operating expenses.

[2] During the designation on August 2015, we reviewed the future export projections and identified that the amount of US$ 9 million designated previously were not highly probable due to Platt's quotation reduction. Therefore, the hedge relationship was discontinued from August 2015. The exchange rate of the effective period remains recorded in Stockholders' Equity until the time of debt settlement, in October 2022.

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12. FINANCIAL INSTRUMENTS (Details 7) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about hedged items [line items]
Fair value of cash flow hedge, net of taxes, beginning	R$ 436,677	R$ 1,520,089
Movement	50,987	(1,005,968)	R$ 1,410,896
Realization	(92,140)	(77,444)	(11,439)
Fair value of cash flow hedge, net of taxes, ending	395,524	436,677	1,520,089
Cash flow hedge accounting
Disclosure of detailed information about hedged items [line items]
Fair value of cash flow hedge, net of taxes, beginning	436,677	1,520,089
Movement	50,987	(1,005,968)
Realization	(92,140)	(77,444)
Fair value of cash flow hedge, net of taxes, ending	R$ 395,524	R$ 436,677	R$ 1,520,089

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12. FINANCIAL INSTRUMENTS (Details 8) - 12 months ended Dec. 31, 2017 € in Thousands, R$ in Thousands, $ in Thousands	BRL (R$)	USD ($) R$ / $	EUR (€) R$ / $
Disclosure of detailed information about hedged items [line items]
Designated amounts		$ 1,566,000
Amortized part		$ (248,333)
Impact on Shareholders' equity | R$	R$ (395,524)
Foreign Subsidiaries
Disclosure of detailed information about hedged items [line items]
Designation date	09/01/2015
Hedging instrument	Non-derivative financial liabilities in EUR – Debt contract
Hedged item	Investments in subsidiaries which EUR is the functional currency
Type of hedged risk	Foreign exchange - R$ vs. EUR spot rate
Exchange rate on designation | R$ / $		4.0825	4.0825
Designated amounts | €			€ 120,000
Amortized part		$ (48,000)
Impact on Shareholders' equity | R$	R$ (17,911)

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12. FINANCIAL INSTRUMENTS (Details 9) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about hedged items [line items]
Movement	R$ 50,987	R$ (1,005,968)	R$ 1,410,896
Realization	(92,140)	(77,444)	(11,439)
Foreign Subsidiaries
Disclosure of detailed information about hedged items [line items]
Fair value of net investment hedge in foreign operations, beginning	(57,804)	20,148
Movement	39,893	(77,952)
Realization
Fair value of net investment hedge in foreign operations, ending	(17,911)	(57,804)	20,148
Foreign Subsidiaries | Net investment hedge accounting
Disclosure of detailed information about hedged items [line items]
Fair value of net investment hedge in foreign operations, beginning	(57,804)	20,148
Movement	39,893	(77,952)
Realization
Fair value of net investment hedge in foreign operations, ending	R$ (17,911)	R$ (57,804)	R$ 20,148

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12. FINANCIAL INSTRUMENTS (Details 10)	Dec. 31, 2017 R$ / $ R$ / €
USD
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Exchange rate | R$ / $	3.3080
USD | Probable Scenario
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Exchange rate | R$ / $	3.2381
USD | Scenario 1
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Exchange rate | R$ / $	4.1350
USD | Scenario 2
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Exchange rate | R$ / $	4.9620
EUR
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Exchange rate | R$ / €	3.9693
EUR | Probable Scenario
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Exchange rate | R$ / €	4.0295
EUR | Scenario 1
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Exchange rate | R$ / €	4.9616
EUR | Scenario 2
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Exchange rate | R$ / €	5.9540

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12. FINANCIAL INSTRUMENTS (Details 11)	Dec. 31, 2017
CDI
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	6.89%
CDI | Scenario 1
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	8.61%
CDI | Scenario 2
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	10.34%
TJLP
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	7.00%
TJLP | Scenario 1
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	8.75%
TJLP | Scenario 2
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	10.50%
LIBOR
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	1.84%
LIBOR | Scenario 1
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	2.30%
LIBOR | Scenario 2
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)	2.76%

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12. FINANCIAL INSTRUMENTS (Details 12) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
Hedge accounting of exports
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Notional amount	R$ 1,317,667
Risk	Dollar
Hedge accounting of exports | Probable Scenario
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	R$ (92,105)	[1]
Hedge accounting of exports | Scenario 1
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	1,089,711
Hedge accounting of exports | Scenario 2
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	2,179,422
Currency position
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Notional amount	R$ (3,343,057)
Risk	Dollar
Currency position | Probable Scenario
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	R$ 233,680	[1]
Currency position | Scenario 1
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	(2,764,708)
Currency position | Scenario 2
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	(5,529,416)
Consolidated exchange position
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Notional amount	R$ (2,025,390)
Risk	Dollar
Consolidated exchange position | Probable Scenario
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	R$ 141,575	[1]
Consolidated exchange position | Scenario 1
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	(1,674,997)
Consolidated exchange position | Scenario 2
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	(3,349,994)
Net Investment hedge accounting
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Notional amount	R$ 72,000
Risk	Euro
Net Investment hedge accounting | Probable Scenario
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	R$ 4,334	[1]
Net Investment hedge accounting | Scenario 1
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	71,447
Net Investment hedge accounting | Scenario 2
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	142,894
Currency position
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Notional amount	R$ (69,203)
Risk	Euro
Currency position | Probable Scenario
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	R$ (4,166)	[1]
Currency position | Scenario 1
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	(68,672)
Currency position | Scenario 2
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	(137,344)
Consolidated exchange position
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Notional amount	R$ 2,797
Risk	Euro
Consolidated exchange position | Probable Scenario
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	R$ 168	[1]
Consolidated exchange position | Scenario 1
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	2,775
Consolidated exchange position | Scenario 2
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Effects on income statement	R$ 5,550

[1] The probable sceneries were calculated considering the following variations to the specified risks: Real x Dollar - appreciation of Real in 2.11% / Real x Euro - appreciation of Real in 1.52%. Source: Quotation from Central Bank of Brazil and Central Bank of Europe on 02/16/2018.

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12. FINANCIAL INSTRUMENTS (Details 13) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Disclosure of financial instruments by type of interest rate [line items]
Assets			R$ 33,435
Liabilities			R$ (31,137)
TJLP
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)		7.00%
Assets
Liabilities		(1,003,712)
TJLP | Probable Scenario
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss	[1]	(3,202)
TJLP | Scenario 1
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss		(17,565)
TJLP | Scenario 2
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss		R$ (35,130)
LIBOR
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)		1.84%
Assets
Liabilities		(4,844,015)
LIBOR | Probable Scenario
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss	[1]	(44,657)
LIBOR | Scenario 1
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss		(22,247)
LIBOR | Scenario 2
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss		R$ (44,494)
CDI
Disclosure of financial instruments by type of interest rate [line items]
Interest rate (in percent)		6.89%
Assets		R$ 644,525
Liabilities		(13,550,383)
CDI | Probable Scenario
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss	[1]	(206,061)
CDI | Scenario 1
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss		(222,303)
CDI | Scenario 2
Disclosure of financial instruments by type of interest rate [line items]
Impact on profit or loss		R$ (444,606)

[1] The sensitivity analysis is based on the assumption of maintaining as probable scenario the market rates at December 31, 2017 recorded in the Company's assets and liabilities.

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12. FINANCIAL INSTRUMENTS (Details 14) R$ in Thousands	Dec. 31, 2017 BRL (R$)
Borrowings, financing and debentures
Disclosure of financial liabilities [line items]
Contractual maturities	R$ 29,569,717
Borrowings, financing and debentures | Less than one year
Disclosure of financial liabilities [line items]
Contractual maturities	6,551,764
Borrowings, financing and debentures | From one to two years
Disclosure of financial liabilities [line items]
Contractual maturities	14,812,478
Borrowings, financing and debentures | From two to five years
Disclosure of financial liabilities [line items]
Contractual maturities	4,249,106
Borrowings, financing and debentures | Over five years
Disclosure of financial liabilities [line items]
Contractual maturities	3,956,369
Trade payables
Disclosure of financial liabilities [line items]
Contractual maturities	2,460,774
Trade payables | Less than one year
Disclosure of financial liabilities [line items]
Contractual maturities	2,460,774
Trade payables | From one to two years
Disclosure of financial liabilities [line items]
Contractual maturities
Trade payables | From two to five years
Disclosure of financial liabilities [line items]
Contractual maturities
Trade payables | Over five years
Disclosure of financial liabilities [line items]
Contractual maturities
Dividends and interest on capital
Disclosure of financial liabilities [line items]
Contractual maturities	510,692
Dividends and interest on capital | Less than one year
Disclosure of financial liabilities [line items]
Contractual maturities	510,692
Dividends and interest on capital | From one to two years
Disclosure of financial liabilities [line items]
Contractual maturities
Dividends and interest on capital | From two to five years
Disclosure of financial liabilities [line items]
Contractual maturities
Dividends and interest on capital | Over five years
Disclosure of financial liabilities [line items]
Contractual maturities

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12. FINANCIAL INSTRUMENTS (Details 15) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Perpetual bonds
Disclosure of financial liabilities [line items]
Carrying amount	R$ 3,312,503	R$ 3,263,536
Fair value	2,602,090	1,702,134
Fixed rate notes
Disclosure of financial liabilities [line items]
Carrying amount	5,751,526	5,666,506
Fair value	R$ 6,207,946	R$ 4,907,339

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12. FINANCIAL INSTRUMENTS (Details 16) R$ in Thousands	Dec. 31, 2017 BRL (R$)	Dec. 31, 2016 BRL (R$)	Dec. 31, 2015 BRL (R$)	Dec. 31, 2014 BRL (R$)
Financial Instruments Details 16
Shareholder's equity (equity)	R$ 8,288,229	R$ 7,384,521	R$ 7,091,288	R$ 5,734,975
Borrowings and Financing (Third-party capital)	R$ 29,510,844	R$ 30,441,018
Gross Debit/Shareholder's equity	3.56	4.12

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12. FINANCIAL INSTRUMENTS (Details Narrative) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Financial Instruments Details Narrative
Investments available for sale, net of taxes	R$ 1,559,680	R$ 678,035

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13. OTHER PAYABLES (Details) - BRL (R$) R$ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		R$ 1,059,901	R$ 1,021,724
Other payables, noncurrent		129,323	131,137
Payables to related parties
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		57,008	10,927
Other payables, noncurrent
Derivative financial instruments
Disclosure of fair value measurement of liabilities [line items]
Other payables, current			121
Other payables, noncurrent
Dividends and interest on capital payable
Disclosure of fair value measurement of liabilities [line items]
Other payables, current	[1]	510,692	484,570
Other payables, noncurrent
Advances from customers
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		68,521	90,720
Other payables, noncurrent
Taxes in installments
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		21,551	24,444
Other payables, noncurrent		79,242	83,312
Profit sharing - employees
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		42,699	211,791
Other payables, noncurrent
Freight provision
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		81,699	57,586
Other payables, noncurrent
Provision for industrial restructuring
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		1,350	13,000
Other payables, noncurrent
Taxes payable
Disclosure of fair value measurement of liabilities [line items]
Other payables, current
Other payables, noncurrent		8,410	8,518
Other provision
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		152,205	23,162
Other payables, noncurrent
Third party materials in our possession
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		231	288
Other payables, noncurrent
Other payables
Disclosure of fair value measurement of liabilities [line items]
Other payables, current		123,945	105,115
Other payables, noncurrent		R$ 41,671	R$ 39,307

[1] Dividends payable by the subsidiary CSN Mineracao.

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14. INCOME TAX AND SOCIAL CONTRIBUTION (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax And Social Contribution Details
Income tax and social contribution income (expense), current	R$ (358,981)	R$ (206,178)	R$ (135,671)
Income tax and social contribution income (expense), deferred	(50,128)	(60,368)	(2,767,545)
Income tax and social contribution income (expense)	R$ (409,109)	R$ (266,546)	R$ (2,903,216)

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14. INCOME TAX AND SOCIAL CONTRIBUTION (Details 1) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of fair value measurement of liabilities [line items]
(Loss)/Profit before income tax and social contribution	R$ 520,338	R$ (576,951)	R$ 1,685,341
Tax rate (in percent)	34.00%	34.00%	34.00%
Income tax and social contribution at combined statutory rate	R$ (176,915)	R$ 196,163	R$ (573,016)
Income tax and social contribution in profit for the period	(409,109)	(266,546)	(2,903,216)
Equity pick-up
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	42,431	22,072	394,492
Profit with differentiated rates or untaxed
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	37,605	(287,502)	798,603
Transfer pricing adjustment
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	(34,746)	(63,638)	(66,447)
Tax loss carryforwards without recognizing deferred taxes
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	(368,612)	(821,920)	(89,978)
Limit of Indebtedness
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	(39,378)	(35,391)	(54,091)
Unrecorded deferred taxes on temporary differences
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	541,655	643,990	(1,133,091)
(Losses)/Reversal for deferred income and social contribution tax credits
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	(403,080)	44,691	(2,949,003)
Refis Effect and early discharge program
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate			(2,586)
Income tax and social contribution on foreign profit
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	(29,964)	(35,613)	72,376
Fair value gain of 59.76% interest held in Namisa
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate			855,551
Goodwill amortization of Metalic
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	31,439	31,439
Tax Incentives
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	14,358	22,673
Reversal of deferred tax in Namisa
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate			(107,773)
Reversal of deferred tax in Prada
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate			(46,681)
Other permanent deductions (additions)
Disclosure of fair value measurement of liabilities [line items]
Adjustment to reflect the effective rate	R$ 7,537	R$ 16,490	R$ (1,571)

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14. INCOME TAX AND SOCIAL CONTRIBUTION (Details 2) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	R$ (976,746)	R$ (993,967)
Movement in shareholders' equity	26,778	71,769
Movement in profit or loss	(50,128)	(60,368)
Other movement	(110,344)	5,820
Deferred tax asset/liability, ending	(1,110,440)	(976,746)
Total deferred assets			R$ 63,119	R$ 70,151	R$ 78,066
Total deferred liabilities			(1,173,559)	(1,046,897)	(1,072,033)
Total deferred	(1,110,440)	(976,746)	(1,110,440)	(976,746)	(993,967)
Deferred income tax losses
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	970,800	417,256
Movement in profit or loss	245,846	556,397
Other movement	(79,412)	(2,853)
Deferred tax asset/liability, ending	1,137,234	970,800
Total deferred	970,800	970,800	1,137,234	970,800	417,256
Deferred social contribution tax losses
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	340,629	161,769
Movement in profit or loss	94,843	179,887
Other movement	(28,588)	(1,027)
Deferred tax asset/liability, ending	406,884	340,629
Total deferred	340,629	340,629	406,884	340,629	161,769
Temporary differences
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	(2,288,175)	(1,572,992)
Movement in shareholders' equity	26,778	71,769
Movement in profit or loss	(390,817)	(796,652)
Other movement	(2,344)	9,700
Deferred tax asset/liability, ending	(2,654,558)	(2,288,175)
Total deferred	(2,288,175)	(2,288,175)	(2,654,558)	(2,288,175)	(1,572,992)
Provision for tax social security, labor, civil and environmental risks
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	256,936	245,923
Movement in profit or loss	12,963	7,615
Other movement		3,398
Deferred tax asset/liability, ending	269,899	256,936
Total deferred	256,936	256,936	269,899	256,936	245,923
Provision for environmental liabilities
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	95,048	89,290
Movement in profit or loss	(8,197)	5,758
Deferred tax asset/liability, ending	86,851	95,048
Total deferred	95,048	95,048	86,851	95,048	89,290
Assets impairment losses
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	93,908	87,152
Movement in profit or loss	(5,475)	6,756
Deferred tax asset/liability, ending	88,433	93,908
Total deferred	93,908	93,908	88,433	93,908	87,152
Inventory impairment losses
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	35,703	29,048
Movement in profit or loss	10,111	5,234
Other movement		1,421
Deferred tax asset/liability, ending	45,814	35,703
Total deferred	35,703	35,703	45,814	35,703	29,048
(Gains )/ losses in financial instruments
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	(2,300)	(5,454)
Movement in profit or loss	1,388	3,154
Deferred tax asset/liability, ending	(912)	(2,300)
Total deferred	(2,300)	(2,300)	(912)	(2,300)	(5,454)
(Gains )/losses on available for sale financial assets
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	705,929	947,989
Movement in shareholders' equity	316,563	(242,060)
Deferred tax asset/liability, ending	1,022,492	705,929
Total deferred	705,929	705,929	1,022,492	705,929	947,989
Actuarial liability (pension and healthcare plan)
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	134,578	164,167
Movement in shareholders' equity	180,834	(15,387)
Movement in profit or loss	(41,065)	(14,202)
Other movement	(1,289)
Deferred tax asset/liability, ending	273,058	134,578
Total deferred	134,578	134,578	273,058	134,578	164,167
Accrued supplies and services
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	123,101	92,401
Movement in profit or loss	(55,385)	30,625
Other movement		75
Deferred tax asset/liability, ending	67,716	123,101
Total deferred	123,101	123,101	67,716	123,101	92,401
Allowance for doubtful debts
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	42,008	38,614
Movement in profit or loss	5,208	1,751
Other movement		1,643
Deferred tax asset/liability, ending	47,216	42,008
Total deferred	42,008	42,008	47,216	42,008	38,614
Goodwil on merger
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	815	9,211
Movement in profit or loss	(207)	(283)
Other movement		(8,113)
Deferred tax asset/liability, ending	608	815
Total deferred	815	815	608	815	9,211
Unrealized exchange differences
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	1,589,651	2,427,926
Movement in shareholders' equity	56,493
Movement in profit or loss	(134,992)	(838,275)
Deferred tax asset/liability, ending	1,511,152	1,589,651
Total deferred	1,589,651	1,589,651	1,511,152	1,589,651	2,427,926
(Gain) in control loss on Transnordestina
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	(92,180)	(224,096)
Movement in profit or loss		131,916
Deferred tax asset/liability, ending	(92,180)	(92,180)
Total deferred	(92,180)	(92,180)	(92,180)	(92,180)	(224,096)
Cash flow hedge accounting
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	148,471	516,831
Movement in shareholders' equity	(13,992)	(368,360)
Deferred tax asset/liability, ending	134,479	148,471
Total deferred	148,471	148,471	134,479	148,471	516,831
Acquisition Fair Value SWT/CBL
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	(199,001)	(299,574)
Movement in shareholders' equity	(21,143)	52,506
Movement in profit or loss	26,833	42,717
Other movement		5,350
Deferred tax asset/liability, ending	(193,311)	(199,001)
Total deferred	(199,001)	(199,001)	(193,311)	(199,001)	(299,574)
Deferred taxes non computed
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	(1,324,437)	(1,673,904)
Movement in shareholders' equity	(566,173)	527,520
Movement in profit or loss	(3,255)	(175,915)
Other movement	(115)	(2,138)
Deferred tax asset/liability, ending	(1,893,980)	(1,324,437)
Total deferred	(1,324,437)	(1,324,437)	(1,893,980)	(1,324,437)	(1,673,904)
Estimated (Losses)/reversals to deferred taxes credits
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	(3,013,730)	(3,173,048)
Movement in shareholders' equity	82,769	114,627
Movement in profit or loss	(123,056)	44,691
Deferred tax asset/liability, ending	(3,054,017)	(3,013,730)
Total deferred	(3,013,730)	(3,013,730)	(3,054,017)	(3,013,730)	(3,173,048)
Business Combination
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	(1,072,824)	(1,058,088)
Movement in profit or loss	32,288	(14,736)
Deferred tax asset/liability, ending	(1,040,536)	(1,072,824)
Total deferred	(1,072,824)	(1,072,824)	(1,040,536)	(1,072,824)	(1,058,088)
Others
Disclosure of fair value measurement of liabilities [line items]
Deferred tax asset/liability, beginning	190,149	212,620
Movement in shareholders' equity	(8,573)	2,923
Movement in profit or loss	(107,976)	(33,458)
Other movement	(940)	8,064
Deferred tax asset/liability, ending	72,660	190,149
Total deferred	R$ 190,149	R$ 190,149	R$ 72,660	R$ 190,149	R$ 212,620

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14. INCOME TAX AND SOCIAL CONTRIBUTION (Details 3)	12 Months Ended
	Dec. 31, 2017
Tax losses
Disclosure of fair value measurement of liabilities [line items]
Description of deferred tax assets on tax losses and temporary differences	In recent periods, the Company started to incur in tax losses, mostly because of high financial expenses, as substantially all our loans and financings are on this level.
Exchange difference expenses
Disclosure of fair value measurement of liabilities [line items]
Description of deferred tax assets on tax losses and temporary differences	Since 2012 the Company opted by the taxation on a cash basis. As the Company have operated without taxable profit, it would not make sense to use this deductibility year by year (accrual basis). As a result of the cash basis tax treatment, taxes are only due and expenses are only deductible at the time of debt settlement.
Losses on Usiminas shares
Disclosure of fair value measurement of liabilities [line items]
Description of deferred tax assets on tax losses and temporary differences	The losses on Usiminas shares are recognized on an accrual basis, but the taxable event will occur only at the time of divestment, expected to occur in the period projected to compensate the deferred taxes.
Other provisions
Disclosure of fair value measurement of liabilities [line items]
Description of deferred tax assets on tax losses and temporary differences	Various accounting provisions are recognized on an accrual basis, but their taxation occurs only at the time of its realization, such as provisions for contingencies, impairment losses, environmental liabilities, etc.

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14. INCOME TAX AND SOCIAL CONTRIBUTION (Details 4) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax And Social Contribution Details 4
Actuarial gains on defined benefit pension plan	R$ 171,473	R$ 30,234
Estimated losses for deferred income and social contribution tax credits - actuarial gains	(175,649)	(33,400)
Changes in the fair value on available-for-sale financial assets	(525,107)	(33,796)
Actuarial gains and assets available for sale by incorporation	525,107	33,796
Exchange differences on translating foreign operations	(369,017)	(425,510)
Cash flow hedge accounting	134,478	109,813
Estimated losses for deferred income and social contribution tax credits - cash flow hedge	(134,478)	(109,813)
Income tax and social contribution	R$ (373,193)	R$ (428,676)

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14. INCOME TAX AND SOCIAL CONTRIBUTION (Details Narrative) R$ in Thousands	60 Months Ended
	Dec. 31, 2017 BRL (R$)
Income Tax And Social Contribution Details Narrative
Profits generated foreign subsidiaries	R$ 926,161
Additional taxation in Brazil form profits generated foreign subsidiaries	R$ 302,482

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15. TAX INSTALLMENTS PROGRAMS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of liabilities [line items]
REFIS debts and other tax installment payment plans, current	R$ 21,551	R$ 24,444
REFIS debts and other tax installment payment plans, noncurrent	79,242	83,312
Federal REFIS Law 11.941/09
Disclosure of fair value measurement of liabilities [line items]
REFIS debts and other tax installment payment plans, current	12,552	11,956
REFIS debts and other tax installment payment plans, noncurrent	20,083	19,779
Federal REFIS Law 12.865/13
Disclosure of fair value measurement of liabilities [line items]
REFIS debts and other tax installment payment plans, current	5,984	5,572
REFIS debts and other tax installment payment plans, noncurrent	56,381	57,905
Other refinancing program
Disclosure of fair value measurement of liabilities [line items]
REFIS debts and other tax installment payment plans, current	3,015	6,916
REFIS debts and other tax installment payment plans, noncurrent	R$ 2,778	R$ 5,628

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16. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities	R$ 825,091	R$ 813,092
Judicial deposits	339,351	331,258
Provisions for tax, social security, labor and civil risks	105,958	108,607
Provision for environmental liabilities and decommissioning of assets	337,013	347,064
Deposit from banks	339,351	331,258
Tax
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities	113,451	119,523
Judicial deposits	52,542	62,035
Social security
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities	74,522	62,574
Judicial deposits	50,098	48,614
Labor
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities	451,173	485,422
Judicial deposits	202,104	186,823
Civil
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities	148,212	137,857
Judicial deposits	22,752	23,179
Environmental
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities	37,733	7,716
Judicial deposits	1,826	2,220
Deposit of a guarantee
Disclosure of fair value measurement of liabilities [line items]
Judicial deposits	R$ 10,029	R$ 8,387

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16. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details 1) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities, beginning	R$ 813,092
Additions	114,583
Accrued charges	54,678
Net utilization of reversal	(157,262)
Accrued liabilities, ending	825,091
Tax
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities, beginning	119,523
Additions	24,805
Accrued charges	6,325
Net utilization of reversal	(37,202)
Accrued liabilities, ending	113,451
Social security
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities, beginning	62,574
Additions	10,333
Accrued charges	3,121
Net utilization of reversal	(1,506)
Accrued liabilities, ending	74,522
Labor
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities, beginning	485,422
Additions	42,400
Accrued charges	33,330
Net utilization of reversal	(109,979)
Accrued liabilities, ending	451,173
Civil
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities, beginning	137,857
Additions	3,496
Accrued charges	11,681
Net utilization of reversal	(4,822)
Accrued liabilities, ending	148,212
Environmental
Disclosure of fair value measurement of liabilities [line items]
Accrued liabilities, beginning	7,716
Additions	33,549
Accrued charges	221
Net utilization of reversal	(3,753)
Accrued liabilities, ending	R$ 37,733

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16. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details 2) - BRL (R$) R$ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		R$ 30,639,075	R$ 25,845,585
Tax assessment notice issued against the Company for an alleged sale of 40% of the shares of its joint venture NAMISA to a Japanese-Korean consortium
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss	[1]	11,073,961	8,415,142
Income tax / Social contribution - Assessment Notice and Imposition of Fine (AIIM) - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by Namisa
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		2,623,179	2,457,855
Assessment Notice and Imposition of Fine (AIIM) - Income tax / Social contribution - gloss of interest on prepayment arising from supply contracts of iron ore and port services
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		2,500,606	2,327,499
Assessment Notice and Imposition of Fine (AIIM) - Income tax / Social contribution - Due to profits from foreign subsidiaries (years 2008, 2010 and 2011)
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		1,858,640	1,644,898
Tax foreclosures - ICMS - Electricity credits
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		920,306	838,192
Installments MP 470 - alleged insufficiency of tax losses
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		704,739	652,553
Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS e IPI
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		1,685,648	1,505,079
Disallowance of the ICMS credits - Transfer of iron ore
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		499,006	570,997
ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		275,233	279,511
Disallowance of the tax losses arising on adjustments to the SAPLI
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		491,862	455,214
Assessment Notice - ICMS - shipping and return merchandise for Industrialization
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		816,199	749,492
Assessment Notice- Income tax- Capital Gain of CFM vendors located outside
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		203,185	185,249
CFEM - Divergence on the understanding between CSN and DNPM on the calculation basis
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		290,249	348,512
Other tax (federal, state, and municipal) lawsuits
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		3,065,131	2,727,258
Assessment Notice - ICMS - Questions about sales to incentive zone
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		170,330	0
Social security lawsuits
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		278,600	263,951
Annulment action filed by CSN against CADE
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		98,189	96,316
Other civil lawsuits
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		1,111,944	814,440
Labor and social security lawsuits
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		1,569,712	1,138,155
Environmental lawsuits - ACP TAC/PAC - Compliance with environmental obligations
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss	[2]	216,878	203,486
Tax foreclosures - Fine of Volta Grande IV (2)
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss	[3]	67,620	58,045
Others Environmental lawsuits
Disclosure of fair value measurement of liabilities [line items]
Legal matters with possible risk of loss		R$ 117,858	R$ 113,741

[1] In February 2017, we were notified of the judgment of the Amendment of Judgment filed due the CARF's decision on case, in which the Federal Revenue Service of Brazil challenges the capital gain on the alleged sale of 40% of NAMISA (currently CSN Mineracao S.A.). The CARF, in short, agreed with the infringement notice. The Company, however, is taking of the lawfulness of the operation and, therefore, is evaluating the appropriate legal and procedural measures to reverse the decision. Currently we have been discussing the subject in several processes and there is a fiscal execution by which a portion of our assets, such as buildings, equipment, land, vehicles and fixtures and furniture, has been given as a guarantee. This processual scenario does not change our assessment and, accordingly, we maintain that contingency as possible.

[2] In 1995, the Municipality of Volta Redonda filed a civil action requesting compliance with the requirements of the Environmental Compensation Program (PAC) agreed between the municipality and CSN. In May 2008, despite the fact that CSN had demonstrated its compliance with the TAC / 1995, involving an approximate amount of R$ 16 million, the Municipality of Volta Redonda disagreed and requested payment of the obligations considered by the Municipality as outstanding. After the initial discussions, the Municipality of Volta Redonda filed a petition to execute the allegedly unfulfilled items, in the original amount of R$ 172 million, which was duly contested by the Company. The First Instance Judge appointed a team of experts to determine the outstanding obligations and the respective value involved. Currently, the process is suspended, at the request of both parties, with a view to negotiations for a possible agreement.

[3] On April 8, 2013, INEA imposed on CSN a fine of R$ 35 million in respect of the aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the civil suit filed in July 2012. In connection with the application of this fine, an annulment action was distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, seeking the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action in order to enforce the amount of the fine imposed. The aforementioned Tax Enforcement action was distributed in May 2014 to the 4th Volta Redonda Active Debt Registry in the State of Rio de Janeiro. Currently, said enforcement action is suspended until the judgment of the annulment action, in order to avoid conflicting decisions.

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16. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details Narrative) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Labor
Disclosure of fair value measurement of liabilities [line items]
Provision for laswuit	R$ 451,173	R$ 485,422
Civil
Disclosure of fair value measurement of liabilities [line items]
Provision for laswuit	148,212	137,857
Environmental
Disclosure of fair value measurement of liabilities [line items]
Provision for laswuit	R$ 37,733	R$ 7,716

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17. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of liabilities [line items]
Provision for environmental liabilities and decommissioning of assets	R$ 337,013	R$ 347,064
Environmental liabilities
Disclosure of fair value measurement of liabilities [line items]
Provision for environmental liabilities and decommissioning of assets	255,517	273,475
Asset retirement obligations
Disclosure of fair value measurement of liabilities [line items]
Provision for environmental liabilities and decommissioning of assets	R$ 81,496	R$ 73,589

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18. RELATED-PARTY BALANCES AND TRANSACTIONS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of transactions between related parties [line items]
Current assets	R$ 162,987	R$ 488,603
Noncurrent assets	696,745	631,834
Current liabilities	138,071	61,550
Noncurrent liabilities	41,937	28,004
Total assets	859,732	1,120,437
Total liabilities	180,008	89,554
Accounts payable
Disclosure of transactions between related parties [line items]
Current liabilities	57,008	10,927
Noncurrent liabilities
Total liabilities	57,008	10,927
Trade payables
Disclosure of transactions between related parties [line items]
Current liabilities	81,063	50,623
Noncurrent liabilities
Total liabilities	81,063	50,623
Actuarial liabilities
Disclosure of transactions between related parties [line items]
Current liabilities
Noncurrent liabilities	41,937	28,004
Total liabilities	41,937	28,004
Trade receivables
Disclosure of transactions between related parties [line items]
Current assets	115,388	129,837
Noncurrent assets
Total assets	115,388	129,837
Dividends receivable
Disclosure of transactions between related parties [line items]
Current assets	41,528	37,679
Noncurrent assets
Total assets	41,528	37,679
Actuarial asset
Disclosure of transactions between related parties [line items]
Current assets
Noncurrent assets	111,281	119,854
Total assets	111,281	119,854
Short-term investments/Investments
Disclosure of transactions between related parties [line items]
Current assets	53	315,319
Noncurrent assets
Total assets	53	315,319
Loans
Disclosure of transactions between related parties [line items]
Current assets	2,441
Noncurrent assets	554,694	479,960
Total assets	557,135	479,960
Other receivables
Disclosure of transactions between related parties [line items]
Current assets	3,577	5,768
Noncurrent assets	30,770	32,020
Total assets	R$ 34,347	R$ 37,788

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18. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 1) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of transactions between related parties [line items]
Related party revenues	R$ 880,145	R$ 878,992	R$ 786,969
Related party expenses	(1,176,930)	(1,099,851)	(1,099,820)
Foreign exchange and monetary variation, net		(18,398)
Related party transactions, net	(235,236)	(181,478)	(314,392)
Purchases
Disclosure of transactions between related parties [line items]
Related party expenses	(1,176,930)	(1,099,851)	(1,103,428)
Interest
Disclosure of transactions between related parties [line items]
Related party expenses		(3,185)	(1,333)
Sales
Disclosure of transactions between related parties [line items]
Related party revenues	880,145	878,992	725,285
Interest
Disclosure of transactions between related parties [line items]
Related party revenues	R$ 61,549	R$ 60,964	R$ 65,084

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18. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 2) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of transactions between related parties [line items]
Current assets	R$ 162,987	R$ 488,603
Noncurrent assets	696,745	631,834
Total assets	859,732	1,120,437
Current liabilities	138,071	61,550
Noncurrent liabilities	41,937	28,004
Total liabilities	180,008	R$ 89,554
Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets	111,547
Noncurrent assets	113,031
Total assets	224,578
Current liabilities	7,462
Noncurrent liabilities	41,937
Total liabilities	49,399
CBS Previdencia | Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets
Noncurrent assets	111,281
Total assets	111,281
Current liabilities
Noncurrent liabilities	41,937
Total liabilities	41,937
Fundacao CSN | Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets	1,829
Noncurrent assets
Total assets	1,829
Current liabilities	518
Noncurrent liabilities
Total liabilities	518
Banco Fibra | Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets	53
Noncurrent assets
Total assets	53
Current liabilities
Noncurrent liabilities
Total liabilities
Usiminas | Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets
Noncurrent assets
Total assets
Current liabilities	410
Noncurrent liabilities
Total liabilities	410
Panatlantica | Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets	109,565
Noncurrent assets	1,750
Total assets	111,351
Current liabilities	6,534
Noncurrent liabilities
Total liabilities	6,534
Partifib Projetos Imobiliarios | Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets	100
Noncurrent assets
Total assets	100
Current liabilities
Noncurrent liabilities
Total liabilities
Vicunha Imoveis Ltda. | Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Vicunha Servicos Ltda. | Other Related Parties
Disclosure of transactions between related parties [line items]
Current assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Arvedi Metalfer do Brasil S.A. | Associates
Disclosure of transactions between related parties [line items]
Current assets	9,650
Noncurrent assets	29,020
Total assets	38,670
Current liabilities
Noncurrent liabilities
Total liabilities
Joint Venture/Joint Operation
Disclosure of transactions between related parties [line items]
Current assets	41,790
Noncurrent assets	554,694
Total assets	596,484
Current liabilities	130,609
Noncurrent liabilities
Total liabilities	130,609
Joint Venture/Joint Operation | Ita Energetica S.A.
Disclosure of transactions between related parties [line items]
Current assets
Noncurrent assets
Total assets
Current liabilities	2,741
Noncurrent liabilities
Total liabilities	2,741
Joint Venture/Joint Operation | MRS Logistica S.A.
Disclosure of transactions between related parties [line items]
Current assets	40,828
Noncurrent assets
Total assets	40,828
Current liabilities	100,749
Noncurrent liabilities
Total liabilities	100,749
Joint Venture/Joint Operation | CBSI
Disclosure of transactions between related parties [line items]
Current assets	714
Noncurrent assets
Total assets	714
Current liabilities	23,874
Noncurrent liabilities
Total liabilities	23,874
Joint Venture/Joint Operation | Transnordestina Logistica S.A.
Disclosure of transactions between related parties [line items]
Current assets	248
Noncurrent assets	554,694
Total assets	554,942
Current liabilities	3,245
Noncurrent liabilities
Total liabilities	R$ 3,245

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18. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 3) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of transactions between related parties [line items]
Related party sales	R$ 880,145	R$ 878,992	R$ 786,969
Related party purchases	(1,176,930)	(1,099,851)	(1,099,820)
Relared party finance income and costs, net	61,549	57,779	47,864
Foreign exchange and monetary variation, net		(18,398)
Related party transactions, net	(235,236)	(181,478)	(264,987)
AssociatesMember | Discontinued operations [member]
Disclosure of transactions between related parties [line items]
Related party sales		43,250	61,684
Related party purchases		(138)	(951)
Relared party finance income and costs, net		(130)
Related party transactions, net		42,982	60,733
Arvedi Metalfer do Brasil S,A, | AssociatesMember
Disclosure of transactions between related parties [line items]
Related party sales	2,660	31,026	1,387
Relared party finance income and costs, net	1,998	2,995	2,465
Related party transactions, net	4,658	34,021	3,852
Joint Venture/Joint Operation
Disclosure of transactions between related parties [line items]
Related party sales	2,604	5,057	113,611
Related party purchases	(1,125,228)	(1,082,272)	(1,091,033)
Relared party finance income and costs, net	53,261	55,758	29,804
Related party transactions, net	(1,069,363)	(1,021,457)	(947,618)
Joint Venture/Joint Operation | Nacional Minerios S.A.
Disclosure of transactions between related parties [line items]
Related party sales			113,563
Related party purchases			(198,378)
Relared party finance income and costs, net			6,424
Related party transactions, net			(78,391)
Joint Venture/Joint Operation | Ita Energetica
Disclosure of transactions between related parties [line items]
Related party purchases	(32,275)	(32,363)
Related party transactions, net	(32,275)	(32,363)
Joint Venture/Joint Operation | MRS Logistica
Disclosure of transactions between related parties [line items]
Related party purchases	(934,279)	(903,030)	(725,710)
Related party transactions, net	(934,279)	(903,030)	(725,710)
Joint Venture/Joint Operation | CBSI - Companhia Brasileira de Servicos e Infraestrutura
Disclosure of transactions between related parties [line items]
Related party sales	55	18	48
Related party purchases	(150,758)	(138,374)	(166,945)
Related party transactions, net	(150,703)	(138,356)	(166,897)
Joint Venture/Joint Operation | Transnordestina Logistica S,A
Disclosure of transactions between related parties [line items]
Related party sales	2,549	5,039
Related party purchases	(7,916)	(8,505)
Relared party finance income and costs, net	53,261	55,758	23,380
Related party transactions, net	47,894	52,292	23,380
Other Related Parties
Disclosure of transactions between related parties [line items]
Related party sales	874,881	799,659	610,287
Related party purchases	(51,702)	(17,441)	(7,836)
Relared party finance income and costs, net	6,290	(844)	15,595
Foreign exchange and monetary variation, net		(18,398)
Related party transactions, net	829,469	762,976	618,046
Other Related Parties | Fundacao CSN
Disclosure of transactions between related parties [line items]
Related party sales	13
Related party purchases	(1,118)	(4,045)	(2,152)
Relared party finance income and costs, net			3
Related party transactions, net	(1,105)	(4,045)	(2,149)
Other Related Parties | Banco Fibra
Disclosure of transactions between related parties [line items]
Relared party finance income and costs, net	6,290	(844)	15,592
Foreign exchange and monetary variation, net		(18,398)
Related party transactions, net	6,290	(19,242)	15,592
Other Related Parties | Usiminas
Disclosure of transactions between related parties [line items]
Related party sales		17,027	12,289
Related party purchases	(427)	(6,026)	(1,230)
Related party transactions, net	(427)	11,001	11,059
Other Related Parties | Panatlantica
Disclosure of transactions between related parties [line items]
Related party sales	872,047	779,503	597,998
Related party purchases	(43,949)
Related party transactions, net	828,098	779,503	597,998
Other Related Parties | Ibis Participacoes e Servicos
Disclosure of transactions between related parties [line items]
Related party sales		47
Related party purchases	(5,915)	(7,370)	(4,324)
Related party transactions, net	(5,915)	(7,323)	(4,324)
Other Related Parties | Taquari Participacoes S,A
Disclosure of transactions between related parties [line items]
Related party purchases			(130)
Related party transactions, net			R$ (130)
Other Related Parties | Partfib Projetos Imobiliarios
Disclosure of transactions between related parties [line items]
Related party sales	2,821	3,082
Related party transactions, net	2,821	R$ 3,082
Other Related Parties | Vicunha Imoveis Ltda.
Disclosure of transactions between related parties [line items]
Related party purchases	(232)
Related party transactions, net	(232)
Other Related Parties | Vicunha Servicos Ltda.
Disclosure of transactions between related parties [line items]
Related party purchases	(61)
Related party transactions, net	R$ (61)

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18. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 4) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related-party Balances And Transactions Details 4
Short-term benefits for employees and officers	R$ 39,721	R$ 71,852	R$ 47,578
Post-employment benefits	110	306	311
Key management personnel compensation	R$ 39,831	R$ 72,158	R$ 47,889

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19. SHAREHOLDERS' EQUITY (Details) - shares	Dec. 31, 2017	Dec. 31, 2016
Number of common shares outstanding	1,387,524,047	1,387,524,047
Percent of total shares	100.00%	100.00%
Common
Number of common shares outstanding	1,357,133,047	1,357,133,047
Percent of total shares	97.81%	97.81%
Percent of voting capital	100.00%	100.00%
Treasury shares
Number of common shares outstanding	30,391,000	30,391,000
Percent of total shares	2.19%	2.19%
Vicunha Acos S.A.
Number of common shares outstanding	682,855,454	682,855,454
Percent of total shares	49.21%	49.21%
Percent of voting capital	50.32%	50.32%
Rio Iaco Participacoes S.A.
Number of common shares outstanding	58,193,503	58,193,503
Percent of total shares	4.19%	4.19%
Percent of voting capital	4.29%	4.29%
CFL Participacoes S.A.
Number of common shares outstanding	3,977,536	3,977,536
Percent of total shares	0.29%	0.29%
Percent of voting capital	0.29%	0.29%
Vicunha Textil S.A.
Number of common shares outstanding	4,927,000	4,927,000
Percent of total shares	0.36%	0.36%
Percent of voting capital	0.36%	0.36%
Caixa Beneficente dos Empregados da CSN - CBS
Number of common shares outstanding	20,143,031	20,143,031
Percent of total shares	1.45%	1.45%
Percent of voting capital	1.48%	1.48%
BNDES Participacoes S.A. - BNDESPAR
Number of common shares outstanding	8,794,890	8,794,890
Percent of total shares	0.63%	0.63%
Percent of voting capital	0.65%	0.65%
NYSE (ADRs)
Number of common shares outstanding	303,590,364	323,546,664
Percent of total shares	21.88%	23.32%
Percent of voting capital	22.37%	23.84%
BM&FBovespa
Number of common shares outstanding	274,651,269	254,694,969
Percent of total shares	19.79%	18.36%
Percent of voting capital	20.24%	18.77%

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19. SHAREHOLDERS' EQUITY (Details 1)		12 Months Ended
		Dec. 31, 2017 $ / shares shares	Dec. 31, 2017 R$ / shares shares	Dec. 31, 2016 shares
Average buyback price | R$ / shares			R$ 7.86
Number bought back		30,391,000	30,391,000
Balance in treasury		1,387,524,047	1,387,524,047	1,387,524,047
Buyback program 1
Board's Authorization		3/13/2014
Authorized quantity		70,205,661	70,205,661
Program Period		From 3/14/2014 to 4/14/2014
Average buyback price | $ / shares		$ 9.34
Minimum and maximum buyback price		R$ 9.22 and R$ 9.45
Number bought back		2,350,000	2,350,000
Balance in treasury		2,350,000	2,350,000
Buyback program 2
Board's Authorization		4/15/2014
Authorized quantity		67,855,661	67,855,661
Program Period		From 4/16/2014 to 5/23/2014
Average buyback price | $ / shares		$ 8.97
Minimum and maximum buyback price		R$ 8.70 and R$ 9.48
Number bought back		9,529,500	9,529,500
Balance in treasury		11,879,500	11,879,500
Buyback program 3
Board's Authorization		5/23/2014
Authorized quantity		58,326,161	58,326,161
Program Period		From 5/26/2014 to 6/25/2014
Average buyback price | $ / shares		$ 9.21
Minimum and maximum buyback price		R$ 8.61 e R$ 9.72
Number bought back		31,544,500	31,544,500
Balance in treasury		43,424,000	43,424,000
Buyback program 4
Board's Authorization		6/26/2014
Authorized quantity		26,781,661	26,781,661
Program Period		From 6/26/2014 to 7/17/2014
Average buyback price | $ / shares		$ 10.42
Minimum and maximum buyback price		R$ 9.33 and R$ 11.54
Number bought back		26,781,661	26,781,661
Balance in treasury		70,205,661	70,205,661
Buyback program 4 (2)
Board's Authorization		7/18/2014
Authorized quantity
Average buyback price | $ / shares
Minimum and maximum buyback price		Not applicable
Share cancelation	[1]	60,000,000	60,000,000
Balance in treasury		10,205,661	10,205,661
Buyback program 5
Board's Authorization		7/18/2014
Authorized quantity		64,205,661	64,205,661
Program Period		From 7/18/2014 to 8/18/2014
Average buyback price | $ / shares		$ 11.40
Minimum and maximum buyback price		R$ 11.40
Number bought back		240,400	240,400
Balance in treasury		10,446,061	10,446,061
Buyback program 5 (2)
Board's Authorization		8/19/2014
Authorized quantity
Average buyback price | $ / shares
Minimum and maximum buyback price		Not applicable
Share cancelation	[1]	10,446,061	10,446,061
Balance in treasury
Buyback program 6
Board's Authorization		8/19/2014
Authorized quantity		63,161,055	63,161,055
Program Period		From 8/19/2014 to 9/25/2014
Average buyback price | $ / shares		$ 9.82
Minimum and maximum buyback price		R$ 9.47 and R$ 10.07
Number bought back		6,791,300	6,791,300
Balance in treasury		6,791,300	6,791,300
Buyback program 7
Board's Authorization		9/29/2014
Authorized quantity		56,369,755	56,369,755
Program Period		From 9/29/2014 to 2/29/2014
Average buyback price | $ / shares		$ 7.49
Minimum and maximum buyback price		R$ 4.48 and R$ 9.16
Number bought back		21,758,600	21,758,600
Balance in treasury		28,549,900	28,549,900
Buyback program 8
Board's Authorization		12/30/2014
Authorized quantity		34,611,155	34,611,155
Program Period		From 12/31/2014 to 3/31/2015
Average buyback price | $ / shares		$ 5.10
Minimum and maximum buyback price		R$ 4.90 and R$ 5.39
Number bought back		1,841,100	1,841,100
Balance in treasury		30,391,000	30,391,000
Buyback program 9
Board's Authorization	[2]	03/31/2015
Authorized quantity	[2]	32,770,055	32,770,055
Program Period	[2]	From 4/01/2015 to 6/30/2015
Average buyback price | $ / shares
Balance in treasury

[1] In 2014 the Board of Directors approved the cancelation of 70,446,061 treasury shares without change in the Company's share capital.

[2] There were no share buyback in this program.

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19. SHAREHOLDERS' EQUITY (Details 2) - BRL (R$) R$ / shares in Units, R$ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Shareholders Equity Details 2
Treasury share purchased		30,391,000
Amount paid for treasury share		R$ 238,976	R$ 238,976
Minimum share price		R$ 4.48
Maximum share price		10.07
Average share price		R$ 7.86
Treasury share market price	[1]	R$ 253,765

[1] Using the last share average quotation on B3 S.A. - Brasil, Bolsa, Balcao (former BM&FBovespa) as of December 31, 2017 of R$8.35 per share.

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19. SHAREHOLDERS' EQUITY (Details 3) - BRL (R$) R$ / shares in Units, R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shareholders Equity Details 3
Profit (loss) from continued operations	R$ 10,272	R$ (925,186)	R$ (1,216,033)
Profit (loss) from discontinued operations	0	(9,561)	1,911
Profit (loss) for the year	R$ 10,272	R$ (934,747)	R$ (1,214,122)
Weighted average number of shares	1,357,133,047	1,357,133,047	1,357,150,010
Continued operations	R$ .00757	R$ (.68172)	R$ (.89602)
Discontinued operations	.00000	(0.00704)	0.00141
Basic and diluted EPS	R$ 0.00757	R$ (.68876)	R$ (.89461)

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19. SHAREHOLDERS' EQUITY (Details Narrative) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Shareholders Equity Details Narrative
Issued capital	R$ 4,540,000	R$ 4,540,000
Number of common shares outstanding	1,387,524,047	1,387,524,047

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20. PAYMENT TO SHAREHOLDERS (Details) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
Disclosure of terms and conditions of share-based payment arrangement [line items]
Approved dividends	R$ 975,000
Paid dividends	R$ 974,827
Dividend 1
Disclosure of terms and conditions of share-based payment arrangement [line items]
Approval year	2014
Approved dividends	R$ 700,000
Payment year	2014
Paid dividends	R$ 424,939
Dividend 2
Disclosure of terms and conditions of share-based payment arrangement [line items]
Approved dividends
Payment year	2015
Paid dividends	R$ 274,917
Dividend 3
Disclosure of terms and conditions of share-based payment arrangement [line items]
Approval year	2015
Approved dividends	R$ 275,000
Payment year	2015
Paid dividends	R$ 274,918
Dividend 4
Disclosure of terms and conditions of share-based payment arrangement [line items]
Approval year	2016
Approved dividends		[1]
Payment year	2016
Paid dividends	R$ 53
Dividend 5
Disclosure of terms and conditions of share-based payment arrangement [line items]
Approval year	2017
Approved dividends		[1]
Payment year	2017
Paid dividends	R$ 0

[1] There is no dividend deliberation on the year of 2016 and 2017.

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21. NET SALES AND SERVICES REVENUE (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of disaggregation of revenue from contracts with customers [line items]
Gross revenue	R$ 21,467,583	R$ 19,777,825	R$ 17,938,566
Sales returns and discounts	(262,989)	(190,415)	(297,957)
Taxes on sales	(2,679,993)	(2,438,461)	(2,378,912)
Deductions	(2,942,982)	(2,628,876)	(2,676,869)
Net revenues	18,524,601	17,148,949	15,261,697
Domestic market
Disclosure of disaggregation of revenue from contracts with customers [line items]
Gross revenue	11,487,011	10,206,195	10,212,748
Net revenues	8,706,466	7,729,913	7,682,533
Foreign market
Disclosure of disaggregation of revenue from contracts with customers [line items]
Gross revenue	9,980,572	9,571,630	7,725,818
Net revenues	R$ 9,818,135	R$ 9,419,036	R$ 7,579,164

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22. EXPENSES BY NATURE (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of disaggregation of revenue from contracts with customers [line items]
Expenses by Nature	R$ (15,827,089)	R$ (14,855,170)	R$ (13,640,622)
Cost of sales and/or services	(13,596,141)	(12,640,042)	(11,740,101)
Selling expenses	(1,815,107)	(1,696,896)	(1,430,189)
General and administrative expenses	(415,841)	(518,232)	(470,332)
Raw materials and inputs
Disclosure of disaggregation of revenue from contracts with customers [line items]
Expenses by Nature	(5,404,801)	(4,518,718)	(4,858,070)
Labor cost
Disclosure of disaggregation of revenue from contracts with customers [line items]
Expenses by Nature	(2,400,579)	(2,482,111)	(1,887,735)
Supplies
Disclosure of disaggregation of revenue from contracts with customers [line items]
Expenses by Nature	(1,451,437)	(1,384,437)	(1,095,576)
Maintenance cost (services and materials)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Expenses by Nature	(1,145,974)	(1,203,294)	(1,069,404)
Outsourcing services
Disclosure of disaggregation of revenue from contracts with customers [line items]
Expenses by Nature	(3,424,439)	(3,492,520)	(3,284,238)
Depreciation, amortization and depletion
Disclosure of disaggregation of revenue from contracts with customers [line items]
Expenses by Nature	(1,408,765)	(1,278,816)	(1,130,869)
Other
Disclosure of disaggregation of revenue from contracts with customers [line items]
Expenses by Nature	R$ (591,094)	R$ (495,274)	R$ (314,730)

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22. EXPENSES BY NATURE (Details 1) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses	R$ (646,944)	R$ (1,076,730)	R$ (1,341,191)
Depreciation, amortization and depletion
Disclosure of disaggregation of revenue from contracts with customers [line items]
Production costs	1,376,862	1,241,425
Sales expenses	8,851	9,163
General and Administrative Expenses	23,052	28,228
Depreciation, amortization and depletion	(1,408,765)	(1,278,816)
Other operating expenses	44,570	43,681
Total	R$ 1,453,335	R$ 1,322,497

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23. OTHER OPERATING INCOME (EXPENSES) (Details) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income		R$ 824,286	R$ 663,509	R$ 3,610,347
Other operating expenses		(646,944)	(1,076,730)	(1,341,191)
Other operating income (expenses), net		177,342	(413,221)	2,269,156
Taxes and fees
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(136,348)	(88,249)	(13,999)
Write-off / (Provision) of judicial deposits
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(38,258)	(64,886)	(24,145)
Expenses with environmental liabilities, net
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(7,156)	(5,023)	(41,697)
Expenses from tax, social security, labor, civil and environmental law suits
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(95,744)	(151,534)	(273,890)
Contractual fines
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses			(16,624)	(309)
Depreciation of unused equipment and amortization of intangible assets
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(44,570)	(43,681)	(41,068)
Write off of PP&E and Intangible assets
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(28,127)	(88,339)	(6,466)
Losses /reversals estimated in inventories
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(12,903)	(17,236)	1,154
Losses on spare parts
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(2,872)	(12,080)	(55,790)
Studies and project engineering expenses
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(32,956)	(31,156)	(38,138)
Research and development expenses
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(3,944)	(2,269)	(3,363)
Advisory expenses
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(3,419)	(20,865)	(15,888)
Healthcare plan expenses
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(97,837)	(80,489)	(56,838)
Impairment of available-for-sale financial assets
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses				(555,298)
REFIS effect - Law 11,941/09 and Law 12,865/13
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses				(4,801)
Provisions/(Provision) for industrial restructuring
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		5,807	96,390	(122,854)
Hedge cash flow realized
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(92,140)	(77,444)	(11,439)
Impairment of fair value of Transnordestina
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses			(387,989)
Other expenses
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating expenses		(56,477)	(85,256)	(76,362)
Indemnities/gains on lawsuits
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income		6,106	26,871	5,189
Rentals and leases
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income		1,841	1,483	1,150
Reversal of provisions
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income				5,020
Dividends received
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income		3,248	567	5,794
Extemporaneous PIS/COFINS credits
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income			203,504	234,287
Contractual fines
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income		2,970	2,501	2,200
Gain on business combination
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income			66,496	3,297,499
Actuarial pension plan
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income		36,952	48,790	8,702
Monetary adjustment related to the Eletrobras's compulsory loan
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income	[1]	755,151
Other revenues
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income		R$ 18,018	61,274	R$ 50,506
Gain on sales of assets held for sale
Disclosure of disaggregation of revenue from contracts with customers [line items]
Other operating income			R$ 252,023

[1] This is a net amount, certain and due, arising from the final judicial decision favorable to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in sentencing the Eletrobras to the payment of the correct interest and monetary correction of the Compulsory Loan. The final judicial decision, as well as the certainty about the amounts involved in the settlement of the judgment (judicial procedure to request the satisfaction of the right), allowed the conclusion that the right to receive this value is certain. Thus, in line with our legal and accounting advisors, we recognize the credits in noncurrent assets against the result of Other Operating Revenues.

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24. FINANCIAL INCOME (EXPENSES) (Details) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial income		R$ 295,074	R$ 643,590	R$ 487,720
Financial expenses		(2,758,701)	(3,166,017)	(3,852,882)
Financial income (expense), net		(2,463,627)	(2,522,427)	(3,365,162)
Statement of gains and (losses) on derivative transactions		28,274	(806,760)	842,242
Dollar-to-CDI swap
Disclosure of disaggregation of revenue from contracts with customers [line items]
Statement of gains and (losses) on derivative transactions				(18)
Dollar-to-real swap (NDF)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Statement of gains and (losses) on derivative transactions				785,702
Future Dollar
Disclosure of disaggregation of revenue from contracts with customers [line items]
Statement of gains and (losses) on derivative transactions			(805,760)	25,381
Dollar-to-euro swap (NDF)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Statement of gains and (losses) on derivative transactions				39,668
Dollar-to-euro swap
Disclosure of disaggregation of revenue from contracts with customers [line items]
Statement of gains and (losses) on derivative transactions		(229)	(6,467)	(4,405)
Swap Pre x CDI
Disclosure of disaggregation of revenue from contracts with customers [line items]
Statement of gains and (losses) on derivative transactions			(299)	(4,956)
Swap CDI x Pre
Disclosure of disaggregation of revenue from contracts with customers [line items]
Statement of gains and (losses) on derivative transactions			(63)	870
Future DI
Disclosure of disaggregation of revenue from contracts with customers [line items]
Statement of gains and (losses) on derivative transactions		28,503	5,829
Borrowings and financing - foreign currency
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(827,841)	(930,508)	(938,047)
Borrowings and financing - local currency
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(1,610,714)	(2,229,849)	(2,116,149)
Related parties
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses			(3,185)	(1,333)
Capitalized interest
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		91,957	215,794	166,366
Losses on derivatives
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses			(362)	(4,956)
Interest, fines and late payment charges
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(72,343)	(38,002)	(20,511)
Commission and bank fees
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(159,088)	(155,249)	(81,594)
PIS/COFINS over financial income
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(21,926)	(39,154)	(23,699)
Other financial expenses
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses	[1]	(142,296)	(102,450)	(105,050)
Inflation adjustment and exchange differences, net
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(16,450)	(116,948)	(727,909)
Inflation adjustments, net
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(10,556)	7,865	44,422
Exchange differences, net
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(5,665)	921,310	(1,618,659)
Exchange gain (losses) on derivatives
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial expenses		(229)	(812,227)	846,328
Related parties
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial income		61,549	60,964	65,084
Income from short-term investments
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial income		162,292	301,401	212,826
Gain from derivative
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial income		28,503	5,829	870
Gain on repurchase of debt securities
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial income			146,214	166,642
Other income
Disclosure of disaggregation of revenue from contracts with customers [line items]
Financial income	[2]	R$ 42,730	R$ 129,182	R$ 42,298

[1] Refers substantially IOF (tax on financial transactions) and provision for IRRF (Corporate Income Tax) / CSLL (Social Contribution on Profit).

[2] Refers substantially an updating of tax credits.

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25. SEGMENT INFORMATION (Details) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of operating segments [line items]
Net revenues		R$ 18,524,601	R$ 17,148,949	R$ 15,261,697
Cost of sales and services		(13,596,141)	(12,640,042)	(11,740,101)
Gross profit		4,928,460	4,508,907	3,521,596
General and administrative expenses		(2,230,948)	(2,215,128)	(1,900,521)
Depreciation		1,408,765	1,278,816	1,130,869
Proportionate EBITDA of joint ventures		538,170	502,345	499,475
Adjusted EBITDA	[1]	4,644,447	4,074,940	3,521,419
Domestic market
Disclosure of operating segments [line items]
Net revenues		8,706,466	7,729,913	7,682,533
Foreign market
Disclosure of operating segments [line items]
Net revenues		R$ 9,818,135	R$ 9,419,036	R$ 7,579,164
Steel
Disclosure of operating segments [line items]
Metric tons (Thou.)	[2]	4921719	4,857,174	4,990,299
Net revenues		R$ 12,959,023	R$ 11,515,908	R$ 11,202,999
Cost of sales and services		(10,537,547)	(9,393,237)	(9,126,889)
Gross profit		2,421,476	2,122,671	2,076,110
General and administrative expenses		(963,822)	(914,927)	(955,247)
Depreciation		658,587	679,074	670,496
Adjusted EBITDA		2,116,241	1,886,818	1,791,359
Steel | Domestic market
Disclosure of operating segments [line items]
Net revenues		7,818,552	6,980,087	6,757,186
Steel | Foreign market
Disclosure of operating segments [line items]
Net revenues		R$ 5,140,471	R$ 4,535,821	R$ 4,445,813
Mining
Disclosure of operating segments [line items]
Metric tons (Thou.)	[2]	32576843	36,983,297	23,861,003
Net revenues		R$ 4,620,971	R$ 4,581,903	R$ 3,187,250
Cost of sales and services		(3,005,840)	(3,099,236)	(2,323,687)
Gross profit		1,615,131	1,482,667	863,563
General and administrative expenses		(158,958)	(185,149)	(69,602)
Depreciation		490,805	461,287	377,344
Adjusted EBITDA		1,946,978	1,758,805	1,171,305
Mining | Domestic market
Disclosure of operating segments [line items]
Net revenues		829,268	542,028	175,223
Mining | Foreign market
Disclosure of operating segments [line items]
Net revenues		3,791,703	4,039,875	3,012,027
Port
Disclosure of operating segments [line items]
Net revenues		238,240	207,722	212,729
Cost of sales and services		(156,997)	(141,542)	(141,809)
Gross profit		81,243	66,180	70,920
General and administrative expenses		(27,943)	(25,180)	(20,473)
Depreciation		15,752	13,430	12,777
Adjusted EBITDA		69,052	54,430	63,224
Port | Domestic market
Disclosure of operating segments [line items]
Net revenues		238,240	207,722	212,729
Port | Foreign market
Disclosure of operating segments [line items]
Net revenues
Railroads
Disclosure of operating segments [line items]
Net revenues		1,416,612	1,319,907	1,156,933
Cost of sales and services		(1,024,696)	(914,361)	(788,046)
Gross profit		391,916	405,546	368,887
General and administrative expenses		(94,921)	(83,020)	(89,678)
Depreciation		294,571	227,792	189,361
Adjusted EBITDA		591,566	550,318	468,570
Railroads | Domestic market
Disclosure of operating segments [line items]
Net revenues		1,416,612	1,319,907	1,156,933
Railroads | Foreign market
Disclosure of operating segments [line items]
Net revenues
Energy
Disclosure of operating segments [line items]
Net revenues		407,671	269,095	244,549
Cost of sales and services		(285,085)	(195,994)	(195,644)
Gross profit		122,586	73,101	48,905
General and administrative expenses		(27,098)	(25,196)	(23,186)
Depreciation		17,265	17,140	17,073
Adjusted EBITDA		112,753	65,045	42,792
Energy | Domestic market
Disclosure of operating segments [line items]
Net revenues		407,671	R$ 269,095	R$ 244,549
Energy | Foreign market
Disclosure of operating segments [line items]
Net revenues
Cement
Disclosure of operating segments [line items]
Metric tons (Thou.)	[2]	3,313,061	2,814,476	2,181,731
Net revenues		R$ 487,129	R$ 490,608	R$ 431,820
Cost of sales and services		(512,762)	(467,373)	(330,263)
Gross profit		(25,633)	23,235	101,557
General and administrative expenses		(80,823)	(74,528)	(72,894)
Depreciation		121,801	73,030	46,505
Adjusted EBITDA		15,345	21,737	75,168
Cement | Domestic market
Disclosure of operating segments [line items]
Net revenues		487,129	R$ 490,608	431,820
Cement | Foreign market
Disclosure of operating segments [line items]
Net revenues
Corporate expenses/elimination
Disclosure of operating segments [line items]
Metric tons (Thou.)	[2]	(5,359,571)	(4,062,774)
Net revenues		R$ (1,605,045)	R$ (1,236,194)	(1,174,583)
Cost of sales and services		1,926,786	1,571,701	1,166,237
Gross profit		321,741	335,507	(8,346)
General and administrative expenses		(877,383)	(907,128)	(669,441)
Depreciation		(190,016)	(192,937)	(182,687)
Proportionate EBITDA of joint ventures		538,170	502,345	499,475
Adjusted EBITDA		(207,488)	(262,213)	(360,999)
Corporate expenses/elimination | Domestic market
Disclosure of operating segments [line items]
Net revenues		(2,491,006)	(2,079,534)	(1,295,907)
Corporate expenses/elimination | Foreign market
Disclosure of operating segments [line items]
Net revenues		R$ 885,961	R$ 843,340	R$ 121,324

[1] The Company discloses its adjusted EBITDA net of its share of investments and other operating income (expenses) because it understands that these should not be included in the calculation of recurring operating cash generation.

[2] The ore sales volumes presented in this note take into consideration Company sales and the interest in its subsidiaries and joint ventures .

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25. SEGMENT INFORMATION (Details 1) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of operating segments [line items]
Net revenues	R$ 18,524,601	R$ 17,148,949	R$ 15,261,697
Asia
Disclosure of operating segments [line items]
Net revenues	4,501,551	4,393,868	2,975,752
North America
Disclosure of operating segments [line items]
Net revenues	2,009,337	1,891,865	1,901,989
Latin America
Disclosure of operating segments [line items]
Net revenues	506,951	259,640	418,245
Europe
Disclosure of operating segments [line items]
Net revenues	2,762,524	2,758,958	2,237,736
Others
Disclosure of operating segments [line items]
Net revenues	37,772	114,705	45,442
Foreign market
Disclosure of operating segments [line items]
Net revenues	9,818,135	9,419,036	7,579,164
Domestic market
Disclosure of operating segments [line items]
Net revenues	8,706,466	7,729,913	7,682,533
Steel
Disclosure of operating segments [line items]
Net revenues	12,959,023	11,515,908	11,202,999
Steel | Asia
Disclosure of operating segments [line items]
Net revenues	23,364	30,815	16,980
Steel | North America
Disclosure of operating segments [line items]
Net revenues	2,009,337	1,891,865	1,901,989
Steel | Latin America
Disclosure of operating segments [line items]
Net revenues	506,951	259,640	376,458
Steel | Europe
Disclosure of operating segments [line items]
Net revenues	2,564,823	2,324,580	2,104,944
Steel | Others
Disclosure of operating segments [line items]
Net revenues	35,996	28,921	45,442
Steel | Foreign market
Disclosure of operating segments [line items]
Net revenues	5,140,471	4,535,821	4,445,813
Steel | Domestic market
Disclosure of operating segments [line items]
Net revenues	7,818,552	6,980,087	6,757,186
Mining
Disclosure of operating segments [line items]
Net revenues	4,620,971	4,581,903	3,187,250
Mining | Asia
Disclosure of operating segments [line items]
Net revenues	3,592,226	3,519,713	2,836,505
Mining | North America
Disclosure of operating segments [line items]
Net revenues
Mining | Latin America
Disclosure of operating segments [line items]
Net revenues			42,730
Mining | Europe
Disclosure of operating segments [line items]
Net revenues	197,701	434,378	132,792
Mining | Others
Disclosure of operating segments [line items]
Net revenues	1,776	85,784
Mining | Foreign market
Disclosure of operating segments [line items]
Net revenues	3,791,703	4,039,875	3,012,027
Mining | Domestic market
Disclosure of operating segments [line items]
Net revenues	829,268	542,028	175,223
Port
Disclosure of operating segments [line items]
Net revenues	238,240	207,722	212,729
Port | Asia
Disclosure of operating segments [line items]
Net revenues
Port | North America
Disclosure of operating segments [line items]
Net revenues
Port | Latin America
Disclosure of operating segments [line items]
Net revenues
Port | Europe
Disclosure of operating segments [line items]
Net revenues
Port | Others
Disclosure of operating segments [line items]
Net revenues
Port | Foreign market
Disclosure of operating segments [line items]
Net revenues
Port | Domestic market
Disclosure of operating segments [line items]
Net revenues	238,240	207,722	212,729
Railroads
Disclosure of operating segments [line items]
Net revenues	1,416,612	1,319,907	1,156,933
Railroads | Asia
Disclosure of operating segments [line items]
Net revenues
Railroads | North America
Disclosure of operating segments [line items]
Net revenues
Railroads | Latin America
Disclosure of operating segments [line items]
Net revenues
Railroads | Europe
Disclosure of operating segments [line items]
Net revenues
Railroads | Others
Disclosure of operating segments [line items]
Net revenues
Railroads | Foreign market
Disclosure of operating segments [line items]
Net revenues
Railroads | Domestic market
Disclosure of operating segments [line items]
Net revenues	1,416,612	1,319,907	1,156,933
Energy
Disclosure of operating segments [line items]
Net revenues	407,671	269,095	244,549
Energy | Asia
Disclosure of operating segments [line items]
Net revenues
Energy | North America
Disclosure of operating segments [line items]
Net revenues
Energy | Latin America
Disclosure of operating segments [line items]
Net revenues
Energy | Europe
Disclosure of operating segments [line items]
Net revenues
Energy | Others
Disclosure of operating segments [line items]
Net revenues
Energy | Foreign market
Disclosure of operating segments [line items]
Net revenues
Energy | Domestic market
Disclosure of operating segments [line items]
Net revenues	407,671	269,095	244,549
Cement
Disclosure of operating segments [line items]
Net revenues	487,129	490,608	431,820
Cement | Asia
Disclosure of operating segments [line items]
Net revenues
Cement | North America
Disclosure of operating segments [line items]
Net revenues
Cement | Latin America
Disclosure of operating segments [line items]
Net revenues
Cement | Europe
Disclosure of operating segments [line items]
Net revenues
Cement | Others
Disclosure of operating segments [line items]
Net revenues
Cement | Foreign market
Disclosure of operating segments [line items]
Net revenues
Cement | Domestic market
Disclosure of operating segments [line items]
Net revenues	487,129	490,608	431,820
Corporate expenses/elimination
Disclosure of operating segments [line items]
Net revenues	(1,605,045)	(1,236,194)	(1,174,583)
Corporate expenses/elimination | Asia
Disclosure of operating segments [line items]
Net revenues	885,961	843,340	122,267
Corporate expenses/elimination | North America
Disclosure of operating segments [line items]
Net revenues
Corporate expenses/elimination | Latin America
Disclosure of operating segments [line items]
Net revenues			(943)
Corporate expenses/elimination | Europe
Disclosure of operating segments [line items]
Net revenues
Corporate expenses/elimination | Others
Disclosure of operating segments [line items]
Net revenues
Corporate expenses/elimination | Foreign market
Disclosure of operating segments [line items]
Net revenues	885,961	843,340	121,324
Corporate expenses/elimination | Domestic market
Disclosure of operating segments [line items]
Net revenues	R$ (2,491,006)	R$ (2,079,534)	R$ (1,295,907)

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25. SEGMENT INFORMATION (Details 2) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Information Details 2
Profit (loss) for the year		R$ 111,229	R$ (853,058)	R$ (1,215,964)
Profit (loss) from discontinued operations		0	9,561	(1,911)
Depreciation/Amortization/Depletion		1,408,765	1,278,816	1,130,869
Income tax and social contribution		409,109	266,546	2,903,216
Finance income (costs), net		2,463,627	2,522,427	3,365,162
EBITDA		4,392,730	3,224,292	6,181,372
Other operating (income) expenses		(177,342)	413,221	(2,269,156)
Equity in results of affiliated companies		(109,111)	(64,918)	(1,160,348)
Proportionate EBITDA of joint ventures		538,170	502,345	499,475
Adjusted EBITDA	[1]	R$ 4,644,447	R$ 4,074,940	R$ 3,521,419

[1] The Company discloses its adjusted EBITDA net of its share of investments and other operating income (expenses) because it understands that these should not be included in the calculation of recurring operating cash generation.

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26. EMPLOYEE BENEFITS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of fair value of plan assets [line items]
Actuarial assets	R$ (111,281)	R$ (119,854)
Actuarial liabilities	908,721	719,266
Pension plan benefits
Disclosure of fair value of plan assets [line items]
Actuarial assets	(111,281)	(119,854)
Actuarial liabilities	41,937	28,004
Post-employment healthcare benefits
Disclosure of fair value of plan assets [line items]
Actuarial liabilities	R$ 866,784	R$ 691,262	R$ 489,074

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26. EMPLOYEE BENEFITS (Details 1) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Benefits Details 1
Present value of defined benefit obligation	R$ 3,077,849	R$ 2,872,442	R$ 2,430,381
Fair value of plan assets	(3,305,356)	(3,193,493)	R$ (2,684,736)
Deficit (Surplus)	(227,507)	(321,051)
Restriction to actuarial assets due to recovery limitation	158,163	229,201
Liabilities (Assets), net	(69,344)	(91,850)
Liabilities	41,937	28,004
Assets	(111,281)	(119,854)
(Assets) liabilities recognized in the balance sheet	R$ (69,344)	R$ (91,850)

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26. EMPLOYEE BENEFITS (Details 2) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Benefits Details 2
Present value of defined benefit obligation, beginning	R$ 2,872,442	R$ 2,430,381
Cost of service	1,285	1,244	R$ 1,807
Interest cost	322,359	311,361	293,533
Benefits paid	(284,777)	(264,287)
Actuarial loss/(gain)	166,540	393,743
Present value of defined benefit obligation, ending	R$ 3,077,849	R$ 2,872,442	R$ 2,430,381

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26. EMPLOYEE BENEFITS (Details 3) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Benefits Details 3
Fair value of plan assets, beginning	R$ (3,193,493)	R$ (2,684,736)
Interest income	(360,013)	(345,521)
Benefits paid	284,777	264,287
Expected return on plan assets (less interest income)	(36,627)	(427,523)	R$ 147,728
Fair value of plan assets, ending	R$ (3,305,356)	R$ (3,193,493)	R$ (2,684,736)

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26. EMPLOYEE BENEFITS (Details 4) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Benefits Details 4
Cost of current service		R$ 1,285	R$ 1,244	R$ 1,807
Interest cost		322,359	311,361	293,533
Expected return on plan assets		(360,013)	(345,521)	(322,460)
Interest on the asset ceiling effect		26,843	22,189	18,422
Total	[1]	(9,526)	(10,727)	(8,698)
Total unrecognized costs (income)	[1]	6	7	4
Total (income) recognized in the income statement		(9,532)	(10,734)	(8,702)
Total (income), net	[1]	R$ (9,526)	R$ (10,727)	R$ (8,698)

[1] Effect of the limit of IAS 19 Employee Benefits.

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26. EMPLOYEE BENEFITS (Details 5) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Benefits Details 5
Actuarial losses and (gains)		R$ 166,540	R$ 393,743	R$ (137,859)
Return on plan assets (less interest income)		(36,627)	(427,523)	147,728
Change in the asset's limit (excluding the interest revenue)		(97,882)	41,796	(4,208)
Total	[1]	32,031	8,016	5,661
Actuarial losses and (gains) recognized in other comprehensive income		32,037	8,023	5,665
Unrecognized actuarial (gains)		(6)	(7)	(4)
Total cost of actuarial losses and (gains)	[1]	R$ 32,031	R$ 8,016	R$ 5,661

[1] Actuarial (gain)/loss results from the fluctuation in the investments comprised in the CBS's asset portfolio.

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26. EMPLOYEE BENEFITS (Details 6) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Benefits Details 6
Loss due to change in demographic assumptions		R$ (3,488)
Loss due to change in financial assumptions		264,638
Loss due to experience adjustments		(94,610)
Return on plan assets (less interest income)		(36,627)	R$ (427,523)	R$ 147,728
Change in the asset's limit (excluding the interest revenue)		(97,882)	41,796	(4,208)
Actuarial losses and (gains)	[1]	R$ 32,031	R$ 8,016	R$ 5,661

[1] Actuarial (gain)/loss results from the fluctuation in the investments comprised in the CBS's asset portfolio.

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26. EMPLOYEE BENEFITS (Details 7)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Employee Benefits Details 7
Actuarial financing method	Projected unit credit	Projected unit credit
Functional currency	Real (R$)	Real (R$)
Recognition of plan assets	Fair value	Fair value
Nominal discount rate	Milenium Plan: 10.42% Plan 35%: 10.30% and Supplementation: 10.32%	Milenium Plan: 11.68%, Plan 35% and Suplementation: 11.72%
Inflation rate	5.00%	5.50%
Nominal salary increase rate	6.05%	6.56%
Nominal benefit increase rate	5.00%	5.50%
Rate of return on investments	Milenium Plan: 10.42% Plan 35%: 10.30% and Supplementation: 10.32%	Milenium Plan: 11.68%, Plan 35% and Suplementation: 11.72%
General mortality table	35% and Average Salary Supplementation Plans : AT 2000 segregated by gender (10% smoothed)	Milenium Plan, 35% and Average Salary Supplementation Plans: AT 2000 segregated by gender (10% smoothed)
Disability table	Plan 35% and Supplementation: Light Média Millênnium Plan: Prudential ( retirement)	Light Median
Disability mortality table	Winklevoss - 1%	Winklevoss - 1%
Turnover table	Millennium plan 5% p.a., nil for DB plans	Millennium plan 5% p.a., nil for DB plans
Retirement age	100% on the first date he/she becomes eligible for programmed retirement benefit under the plan	100% on the first date he/she becomes eligible for programmed retirement benefit under the plan
Household of active participants	95% will be married at the time of retirement, with the wife being 4 years younger than the husband	95% will be married at the time of retirement, with the wife being 4 years younger than the husband

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26. EMPLOYEE BENEFITS (Details 8)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
BD Plan | Male
Disclosure of defined benefit plans [line items]
Average life expectancy of employees (in years)	[1]	20.45	20.45
Average life expectancy in years of employees who are 40 (in years)	[1]	42.69	42.69
BD Plan | Female
Disclosure of defined benefit plans [line items]
Average life expectancy of employees (in years)	[1]	23.02	23.02
Average life expectancy in years of employees who are 40 (in years)	[1]	46.29	46.29
Milenio Plan | Male
Disclosure of defined benefit plans [line items]
Average life expectancy of employees (in years)	[1]	19.55	19.55
Average life expectancy in years of employees who are 40 (in years)	[1]	41.59	41.59
Milenio Plan | Female
Disclosure of defined benefit plans [line items]
Average life expectancy of employees (in years)	[1]	22.17	22.17
Average life expectancy in years of employees who are 40 (in years)	[1]	45.30	45.30

[1] The BD Plan is part of the 35% and Average Salary Supplementation Plan and the Milenio Plan is part of the Mixed Supplementary Benefit Plan.

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26. EMPLOYEE BENEFITS (Details 9) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of defined benefit plans [line items]
Allocation of plan assets	R$ 3,305,356	R$ 3,193,493	R$ 2,684,736
Allocation of plan assets percent	100.00%	100.00%
Variable income
Disclosure of defined benefit plans [line items]
Allocation of plan assets	R$ 50,966	R$ 62,904
Allocation of plan assets percent	1.54%	1.97%
Fixed income
Disclosure of defined benefit plans [line items]
Allocation of plan assets	R$ 3,085,783	R$ 2,966,272
Allocation of plan assets percent	93.36%	92.88%
Real estate
Disclosure of defined benefit plans [line items]
Allocation of plan assets	R$ 44,083	R$ 42,383
Allocation of plan assets percent	1.33%	1.33%
Others
Disclosure of defined benefit plans [line items]
Allocation of plan assets	R$ 124,524	R$ 121,934
Allocation of plan assets percent	3.77%	3.82%

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26. EMPLOYEE BENEFITS (Details 10) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of defined benefit plans [line items]
Effect on present value of obligations	R$ (36,627)	R$ (427,523)	R$ 147,728
Plan covering 35% of the average salary | Discount rate
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations	R$ 246
Effect on present value of obligations	R$ (15,691)
Plan covering 35% of the average salary | Salary growth
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations
Effect on present value of obligations
Plan covering 35% of the average salary | Mortality table
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations	R$ 1,799
Effect on present value of obligations	R$ 17,563
Plan covering 35% of the average salary | Benefit adjustment
Disclosure of defined benefit plans [line items]
Sensitivity level	1.00%
Effect on current service cost and on interest on actuarial obligations	R$ (1,045)
Effect on present value of obligations	R$ (10,158)
Plan covering 35% of the average salary | Discount rate
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations	R$ (320)
Effect on present value of obligations	R$ 15,342
Plan covering 35% of the average salary | Salary growth
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations
Effect on present value of obligations
Plan covering 35% of the average salary | Mortality table
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations	R$ (1,646)
Effect on present value of obligations	R$ (16,073)
Plan covering 35% of the average salary | Benefit adjustment
Disclosure of defined benefit plans [line items]
Sensitivity level	(1.00%)
Effect on current service cost and on interest on actuarial obligations	R$ 1,041
Effect on present value of obligations	R$ 10,116
Average salary supplementation plan | Discount rate
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations	R$ 879
Effect on present value of obligations	R$ (75,107)
Average salary supplementation plan | Salary growth
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations
Effect on present value of obligations
Average salary supplementation plan | Mortality table
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations	R$ 8,896
Effect on present value of obligations	R$ 86,537
Average salary supplementation plan | Benefit adjustment
Disclosure of defined benefit plans [line items]
Sensitivity level	1.00%
Effect on current service cost and on interest on actuarial obligations	R$ (4,623)
Effect on present value of obligations	R$ (44,773)
Average salary supplementation plan | Discount rate
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations	R$ (919)
Effect on present value of obligations	R$ 82,773
Average salary supplementation plan | Salary growth
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations
Effect on present value of obligations
Average salary supplementation plan | Mortality table
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations	R$ (8,120)
Effect on present value of obligations	R$ (79,006)
Average salary supplementation plan | Benefit adjustment
Disclosure of defined benefit plans [line items]
Sensitivity level	(1.00%)
Effect on current service cost and on interest on actuarial obligations	R$ 4,564
Effect on present value of obligations	R$ 44,205
Mixed supplementary benefit plan (Milenio Plan) | Discount rate
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations	R$ (656)
Effect on present value of obligations	R$ (46,256)
Mixed supplementary benefit plan (Milenio Plan) | Salary growth
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations	R$ 330
Effect on present value of obligations	R$ 2,588
Mixed supplementary benefit plan (Milenio Plan) | Mortality table
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations	R$ 5,555
Effect on present value of obligations	R$ 53,031
Mixed supplementary benefit plan (Milenio Plan) | Benefit adjustment
Disclosure of defined benefit plans [line items]
Sensitivity level	1.00%
Effect on current service cost and on interest on actuarial obligations	R$ (894)
Effect on present value of obligations	R$ (9,417)
Mixed supplementary benefit plan (Milenio Plan) | Discount rate
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations	R$ 491
Effect on present value of obligations	R$ 49,545
Mixed supplementary benefit plan (Milenio Plan) | Salary growth
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations	R$ (283)
Effect on present value of obligations	R$ (2,221)
Mixed supplementary benefit plan (Milenio Plan) | Mortality table
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations	R$ (4,993)
Effect on present value of obligations	R$ (47,660)
Mixed supplementary benefit plan (Milenio Plan) | Benefit adjustment
Disclosure of defined benefit plans [line items]
Sensitivity level	(1.00%)
Effect on current service cost and on interest on actuarial obligations	R$ 904
Effect on present value of obligations	R$ 9,425

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26. EMPLOYEE BENEFITS (Details 11) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	R$ 3,156,089
Year 1
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	276,660
Year 2
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	285,841
Year 3
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	294,923
Year 4
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	303,858
Year 5
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	312,591
Next 5 years
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	R$ 1,682,216

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26. EMPLOYEE BENEFITS (Details 12) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of net defined benefit liability (asset) [line items]
Present value of obligations	R$ 3,077,849	R$ 2,872,442	R$ 2,430,381
Actuarial liabilities	908,721	719,266
Post-employment healthcare benefits
Disclosure of net defined benefit liability (asset) [line items]
Present value of obligations	866,784	691,262
Actuarial liabilities	R$ 866,784	R$ 691,262	R$ 489,074

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26. EMPLOYEE BENEFITS (Details 13) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of net defined benefit liability (asset) [line items]
Actuarial liabilities, beginning	R$ 719,266
Actuarial liabilities, ending	908,721	R$ 719,266
Post-employment healthcare benefits
Disclosure of net defined benefit liability (asset) [line items]
Actuarial liabilities, beginning	691,262	489,074
Expenses recognized in income for the year	77,269	62,342
Sponsor's contributions transferred in prior year	(72,192)	(70,411)
Recognition of loss/(gain) for the year	170,445	210,257
Actuarial liabilities, ending	R$ 866,784	R$ 691,262

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26. EMPLOYEE BENEFITS (Details 14) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of defined benefit plans [line items]
Actuarial gain (loss) on obligation		R$ 166,540	R$ 393,743	R$ (137,859)
Total cost of actuarial losses and (gains)	[1]	32,031	8,016	5,661
Post-employment healthcare benefits
Disclosure of defined benefit plans [line items]
Actuarial gain (loss) on obligation		170,445	210,257	(97,501)
Total cost of actuarial losses and (gains)		R$ 170,445	R$ 210,257	R$ (97,501)

[1] Actuarial (gain)/loss results from the fluctuation in the investments comprised in the CBS's asset portfolio.

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26. EMPLOYEE BENEFITS (Details 15) - Post-employment healthcare benefits	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Male
Disclosure of defined benefit plans [line items]
Average life expectancy of employees (in years)	19.55	19.55
Average life expectancy in years of employees who are 40 (in years)	41.59	41.59
Female
Disclosure of defined benefit plans [line items]
Average life expectancy of employees (in years)	22.17	22.17
Average life expectancy in years of employees who are 40 (in years)	45.30	45.30

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26. EMPLOYEE BENEFITS (Details 16)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of defined benefit plans [line items]
General mortality table	35% and Average Salary Supplementation Plans : AT 2000 segregated by gender (10% smoothed)	Milenium Plan, 35% and Average Salary Supplementation Plans: AT 2000 segregated by gender (10% smoothed)
Disability mortality table	Winklevoss - 1%	Winklevoss - 1%
Inflation	5.00%	5.50%
Post-employment healthcare benefits
Disclosure of defined benefit plans [line items]
General mortality table	AT 2000 segregated by gender	AT 2000 segregated by gender
Disability mortality table	Winklevoss with death probabilities reduced by 1% in all ages	Winklevoss with death probabilities reduced by 1% in all ages
Actuarial nominal discount rate	10.34%	11.73%
Inflation	5.00%	5.50%
Nominal increase in medical cost based on age	0.5% - 3.00%real a.a	0.5% - 3.00%real a.a
Nominal medical costs growth rate	8.41%	8.93%
Average medical cost	1,001.69	698,57

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26. EMPLOYEE BENEFITS (Details 17) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of defined benefit plans [line items]
Effect on present value of obligations	R$ (36,627)	R$ (427,523)	R$ 147,728
Post-employment healthcare benefits | Discount rate
Disclosure of defined benefit plans [line items]
Sensitivity level	0.50%
Effect on current service cost and on interest on actuarial obligations	R$ 248
Effect on present value of obligations	R$ (33,996)
Post-employment healthcare benefits | Medical inflation
Disclosure of defined benefit plans [line items]
Sensitivity level	1.00%
Effect on current service cost and on interest on actuarial obligations	R$ 8,150
Effect on present value of obligations	R$ 78,813
Post-employment healthcare benefits | Mortality table
Disclosure of defined benefit plans [line items]
Sensitivity level	1.00%
Effect on current service cost and on interest on actuarial obligations	R$ (2,059)
Effect on present value of obligations	R$ (19,906)
Post-employment healthcare benefits | Discount rate
Disclosure of defined benefit plans [line items]
Sensitivity level	(0.50%)
Effect on current service cost and on interest on actuarial obligations	R$ 660
Effect on present value of obligations	R$ 36,985
Post-employment healthcare benefits | Medical inflation
Disclosure of defined benefit plans [line items]
Sensitivity level	(1.00%)
Effect on current service cost and on interest on actuarial obligations	R$ (6,698)
Effect on present value of obligations	R$ (67,670)
Post-employment healthcare benefits | Mortality table
Disclosure of defined benefit plans [line items]
Sensitivity level	(1.00%)
Effect on current service cost and on interest on actuarial obligations	R$ 2,040
Effect on present value of obligations	R$ 19,728

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26. EMPLOYEE BENEFITS (Details 18) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	R$ 3,156,089
Post-employment healthcare benefits
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	860,738
Post-employment healthcare benefits | Year 1
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	75,009
Post-employment healthcare benefits | Year 2
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	78,161
Post-employment healthcare benefits | Year 3
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	81,121
Post-employment healthcare benefits | Year 4
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	83,850
Post-employment healthcare benefits | Year 5
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	86,296
Post-employment healthcare benefits | Next 5 years
Disclosure of defined benefit plans [line items]
Benefit payments of the defined benefit plans	R$ 456,301

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26. EMPLOYEE BENEFITS (Details Narrative) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$) Participants	Dec. 31, 2016 BRL (R$) Participants	Dec. 31, 2015 BRL (R$)
Disclosure of defined benefit plans [line items]
Total participants	35,176	34,051
Pension plan expense | R$	R$ 41,544	R$ 35,798	R$ 35,539
Active contributors
Disclosure of defined benefit plans [line items]
Total participants	20,734	19,442
Retired employees
Disclosure of defined benefit plans [line items]
Total participants	13,587	13,783
Related beneficiaries
Disclosure of defined benefit plans [line items]
Total participants	855	826

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27. COMMITMENTS (Details) R$ in Thousands	Dec. 31, 2017 BRL (R$)
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	R$ 7,354,710
2016
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	1,580,989
2017
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	1,582,099
2018
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	1,148,042
2019
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	925,124
2020
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	896,780
2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	774,562
After 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	3,610,202
Transportation of iron ore, coal, coke, steel products, cement and mining products
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	6,944,263
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2016
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	873,186
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2017
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	957,373
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2018
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	877,288
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2019
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	877,288
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2020
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	854,609
Transportation of iron ore, coal, coke, steel products, cement and mining products | 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	732,391
Transportation of iron ore, coal, coke, steel products, cement and mining products | After 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	3,602,687
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	355,101
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2016
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	621,551
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2017
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	563,743
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2018
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	246,624
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2019
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	36,159
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2020
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	36,159
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	36,159
Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets | After 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts
Processing of slag generated during pig iron and steel production
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	31,563
Processing of slag generated during pig iron and steel production | 2016
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	49,487
Processing of slag generated during pig iron and steel production | 2017
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	8,880
Processing of slag generated during pig iron and steel production | 2018
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	6,012
Processing of slag generated during pig iron and steel production | 2019
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	6,012
Processing of slag generated during pig iron and steel production | 2020
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	6,012
Processing of slag generated during pig iron and steel production | 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	6,012
Processing of slag generated during pig iron and steel production | After 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	7,515
Manufacturing, repair, recovery and production of ingot casting machine units
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	23,783
Manufacturing, repair, recovery and production of ingot casting machine units | 2016
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	36,765
Manufacturing, repair, recovery and production of ingot casting machine units | 2017
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	52,103
Manufacturing, repair, recovery and production of ingot casting machine units | 2018
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	18,118
Manufacturing, repair, recovery and production of ingot casting machine units | 2019
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts	5,665
Manufacturing, repair, recovery and production of ingot casting machine units | 2020
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts
Manufacturing, repair, recovery and production of ingot casting machine units | 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts
Manufacturing, repair, recovery and production of ingot casting machine units | After 2021
Disclosure of detailed information about borrowings [line items]
Take-or-pay contracts

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27. COMMITMENTS (Details 1) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$)
FTL
Disclosure of detailed information about borrowings [line items]
Type of service	30-year concession granted on December 31, 1997, renewable for another 30 years, to develop public service and operating the railway system in northeastern Brazil. The northeastern railway system covers 4238 kilometers of railway network and operates in Maranhão, Piauí, Ceará, Paraíba, Pernambuco, Alagoas and Rio Grande do Norte.
Minimum future payments related to government concessions	R$ 90,690
FTL | 2018
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	9,069
FTL | 2019
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	9,069
FTL | 2020
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	9,069
FTL | 2021
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	9,069
FTL | After 2021
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	R$ 54,414
Tecar
Disclosure of detailed information about borrowings [line items]
Type of service	Concession to operate the TECAR, a solid bulk terminal, one of the four terminals that make up the Port of Itaguai, located in Rio de Janeiro. The concession was renewable and the agreement expires in 2047.
Minimum future payments related to government concessions	R$ 3,218,880
Tecar | 2018
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	107,296
Tecar | 2019
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	107,296
Tecar | 2020
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	107,296
Tecar | 2021
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	107,296
Tecar | After 2021
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	R$ 2,789,696
Tecon
Disclosure of detailed information about borrowings [line items]
Type of service	25-year concession started in July 2001, renewable for another 25 years to operate the container terminal at the Port of Itaguai.
Minimum future payments related to government concessions	R$ 263,141
Tecon | 2018
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	30,958
Tecon | 2019
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	30,958
Tecon | 2020
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	30,958
Tecon | 2021
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	30,958
Tecon | After 2021
Disclosure of detailed information about borrowings [line items]
Minimum future payments related to government concessions	R$ 139,309

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29. ADDITIONAL INFORMATION TO CASH FLOWS (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Additional Information To Cash Flows Details
Income tax and social contribution paid	R$ 268,847	R$ 456,227	R$ 134,920
Addition to PP&E with interest capitalization	91,957	215,794	166,366
Acquisition of fixed assets through loans	4,265	7,437	566,413
Acquisition in subsidiaries without cash	20,264	0	3,229
Total additional information to cash flows	R$ 385,333	R$ 679,458	R$ 870,928