Inventories

Inventories are comprised of the following:



	As of December 31, 2016		As of June 30, 2017
	(Dollars in thousands)
Inventories:
Raw materials and supplies	$	54,469	$	50,472
Work in process	52,379		69,237
Finished goods	49,263		44,715
Total	$	156,111	$	164,424

Due to decreased pricing in our graphite electrode product line, we recorded a lower of cost or market inventory adjustment of $14.6 million and $1.5 million in the six months ended June 30, 2016 and June 30, 2017, respectively. The decrease is attributable to the reduction in product costs and associated improvement on product margins.