INVENTORIES: Inventories consisted of approximately 39% raw materials and supplies and 61% finished and semi-finished products at July 1, 2017 (37% and 63%, respectively, at December 31, 2016). Nucor’s manufacturing process consists of a continuous, vertically integrated process from which products are sold to customers at various stages throughout the process. Since most steel products can be classified as either finished or semi-finished products, these two categories of inventory are combined. Use of the lower of cost or market methodology reduced inventories by $2.0 million at July 1, 2017 ($2.2 million at December 31, 2016).