11. Inventories
Inventories comprise the following at December 31:
|
|
|
2017 |
|
2016 |
|
|
|
US$'000 |
|
US$'000 |
|
Finished industrial goods |
|
160,060 |
|
116,629 |
|
Raw materials in progress and industrial supplies |
|
177,728 |
|
176,568 |
|
Other inventories |
|
24,902 |
|
23,708 |
|
Advances to suppliers |
|
170 |
|
954 |
|
Less – provision for write-downs |
|
(1,629) |
|
(1,157) |
|
Total |
|
361,231 |
|
316,702 |
The changes in the provision for write-downs during 2017 and 2016 were as follows:
|
|
|
Provision for write-downs |
|
|
|
US$'000 |
|
Balance at January 1, 2016 |
|
3,210 |
|
Charge for the year (Note 25.3) |
|
— |
|
Amount used |
|
(2,048) |
|
Exchange differences |
|
(5) |
|
Balance at December 31, 2016 |
|
1,157 |
|
Charge for the year (Note 25.3) |
|
405 |
|
Amount used |
|
(105) |
|
Exchange differences |
|
172 |
|
Balance at December 31, 2017 |
|
1,629 |
The write-downs in 2017 and 2016 were recognized to adjust the acquisition or production cost to the net realizable value of the inventories. The Company records other than temporary inventory impairment to Cost of sales in the consolidated income statement.
The Company’s purchase commitments totaled approximately $28,467 thousand at December 31, 2017 and $19,956 thousand at December 31, 2016.
At December 31, 2017 and 2016, approximately $0 and $118,561 thousand respectively, of inventories are secured as collateral for several outstanding loan agreements.