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Inventories
12 Months Ended
Dec. 31, 2018
Inventory Disclosure [Abstract]  
Inventories
Inventories
The components of inventories, net of reserves as of December 31, 2018 and 2017 were as follows:
 
December 31,
 
2018
 
2017
Manufacturing supplies

$46.9

 

$36.3

Raw materials
35.2

 
31.9

Work in process
155.7

 
137.8

Finished products
142.8

 
82.9

Gross inventory
380.6

 
288.9

Allowance for surplus and obsolete inventory
(5.1
)
 
(7.8
)
LIFO reserve
(78.7
)
 
(57.1
)
Total Inventories, net

$296.8

 

$224.0


Inventories are valued at the lower of cost or market, with approximately 74% valued by the LIFO method, and the remaining inventories, including manufacturing supplies inventory as well as international (outside the United States) inventories, valued by FIFO, average cost or specific identification methods.
TimkenSteel recognized an increase in its LIFO reserve of $21.6 million and $12.5 million for the years ended December 31, 2018 and 2017, respectively. The increase in the LIFO reserve recognized during 2018 was due to higher scrap prices and inflation on certain consumables. The increase in the LIFO reserve recognized during 2017 was due to higher manufacturing costs and high scrap prices.