Gerdau (GGB) 20-F 31 Mar 22 2021 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2021shares
Document and Entity Information
Entity Registrant Name	GERDAU S.A.
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Current Fiscal Year End Date	--12-31
Document Period End Date	Dec. 31, 2021
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	1-14878
Entity Incorporation, State or Country Code	D5
Entity Address, Address Line One	Av. Dra. Ruth Cardoso
Entity Address, Address Line Two	8,501 – 8° floor
Entity Address, City or Town	São Paulo
Entity Address, Country	BR
Entity Address, Postal Zip Code	05425-070
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding	573,627,483
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Entity Central Index Key	0001073404
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Name	KPMG Auditores Independentes Ltda
Auditor Firm ID	1124
Auditor Location	Porto Alegre, Brazil
American Depositary Shares
Document and Entity Information
Title of 12(b) Security	AmericanDepositary Shares

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash and cash equivalents	R$ 4160654	R$ 4617204
Short-term investments	2,626,212	3,041,143
Trade accounts receivable - net	5,414,075	3,737,270
Inventories	16,861,488	9,169,417
Tax credits	2,083,885	1,201,312
Income and social contribution taxes recoverable	804,053	1,051,584
Dividends receivable	7,671	0
Fair value of derivatives	3,246	0
Other current assets	679,193	591,523
TOTAL CURRENT ASSETS	32,640,477	23,409,453
NON-CURRENT ASSETS
Tax credits	124,600	664,045
Deferred income taxes	2,929,308	3,393,354
Related parties	2,678	134,354
Judicial deposits	1,659,379	1,825,791
Other non-current assets	571,637	590,864
Prepaid pension cost	4,942	39,196
Investments in associates and joint ventures	3,340,775	2,271,629
Goodwill	12,427,527	12,103,519
Leasing	861,744	815,311
Other intangibles	509,760	622,578
Property, plant and equipment, net	18,741,786	17,252,915
TOTAL NON-CURRENT ASSETS	41,174,136	39,713,556
TOTAL ASSETS	73,814,613	63,123,009
CURRENT LIABILITIES
Trade accounts payable	8,017,140	5,437,953
Short-term debt	234,537	1,424,043
Debentures	1,531,956	7,463
Taxes payable	548,173	600,089
Income and social contribution taxes payable	863,136	810,125
Payroll and related liabilities	1,199,143	591,653
Dividends payable	0	510,348
Leasing payable	275,086	231,703
Employee benefits	39	208
Environmental liabilities	231,711	125,992
Fair value of derivatives	0	971
Obligations with FIDC	45,497	944,513
Other current liabilities	1,090,396	797,082
TOTAL CURRENT LIABILITIES	14,036,814	11,482,143
NON-CURRENT LIABILITIES
Long-term debt	10,875,249	13,188,891
Debentures	1,397,951	2,894,954
Related parties	24,648	22,855
Deferred income taxes	98,975	61,562
Provision for tax, civil and labor liabilities	1,741,026	1,172,511
Environmental liabilities	343,998	171,102
Employee benefits	1,415,151	1,861,231
Obligations with FIDC	0	42,893
Leasing payable	643,279	624,771
Other non-current liabilities	421,873	514,886
TOTAL NON-CURRENT LIABILITIES	16,962,150	20,555,656
EQUITY
Capital	19,249,181	19,249,181
Treasury stocks	(152,409)	(229,309)
Capital reserves	11,597	11,597
Retained earnings	17,838,494	7,292,332
Transactions with non-controlling interests without change of control	(2,870,825)	(2,870,825)
Other reserves	8,528,244	7,407,295
EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT	42,604,282	30,860,271
NON-CONTROLLING INTERESTS	211,367	224,939
EQUITY	42,815,649	31,085,210
TOTAL LIABILITIES AND EQUITY	R$ 73814613	R$ 63123009

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF INCOME
NET SALES	R$ 78345081	R$ 43814661	R$ 39644010
Cost of sales	(57,527,721)	(37,884,102)	(35,440,726)
GROSS PROFIT	20,817,360	5,930,559	4,203,284
Selling expenses	(715,830)	(512,950)	(476,339)
General and administrative expenses	(1,390,121)	(1,017,435)	(954,117)
Other operating income	979,760	1,763,684	636,847
Other operating expenses	(460,029)	(645,985)	(187,647)
Eletrobras compulsory loan recovery	1,391,280	0	0
Results in operations with subsidiary and joint ventures	(162,913)	0	0
Impairment of financial assets	357	(64,132)	(21,044)
Impairment of non-financial assets	0	(411,925)	0
Equity in earnings of unconsolidated companies	563,158	152,569	(17,050)
INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES	21,023,022	5,194,385	3,183,934
Financial income	249,024	194,092	223,213
Financial expenses	(1,433,087)	(1,448,461)	(1,469,754)
Bonds repurchase expenses	(264,687)	(239,273)	0
Tax credits monetary update	788,741	0	0
Exchange variations, net	(108,373)	(204,291)	(247,555)
Gains and losses on derivative financial instruments, net	17,928	(774)	(15,118)
INCOME BEFORE TAXES	20,272,568	3,495,678	1,674,720
Current	(4,306,223)	(908,051)	(240,400)
Deferred	(407,407)	(199,573)	(217,433)
Income and social contribution taxes	(4,713,630)	(1,107,624)	(457,833)
NET INCOME	15,558,938	2,388,054	1,216,887
ATTRIBUTABLE TO:
Owners of the parent	15,494,111	2,365,763	1,203,736
Non-controlling interests	64,827	22,291	13,151
NET INCOME	R$ 15558938	R$ 2388054	R$ 1216887
EARNINGS PER SHARE
Basic earnings per share - preferred and common - (R$)	R$ 9.09	R$ 1.39	R$ 0.71
Diluted earnings per share - preferred and common - (R$)	R$ 9.04	R$ 1.38	R$ 0.70

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income for the year	R$ 15558938	R$ 2388054	R$ 1216887
Items that may be reclassified subsequently to profit or loss
Other comprehensive income from associates and joint ventures	225,507	358,816	55,038
Cumulative translation adjustment	1,275,767	4,466,084	682,451
Recycling of cumulative translation adjustment to net income	193,334	0	0
Unrealized Losses on net investment hedge	(695,102)	(2,504,914)	(322,948)
Cash flow hedges
Unrealized Gains (Losses) on Financial Instruments, net of tax	1,907	(1,972)	3,502
Total items that may be reclassified subsequently to profit or loss	1,001,413	2,318,014	418,043
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit pension plan, net of tax	252,532	(52,072)	(45,561)
Total items that will not be reclassified subsequently to profit or loss	252,532	(52,072)	(45,561)
Other comprehensive income, net of tax	1,253,945	2,265,942	372,482
Total comprehensive income for the year, net of tax	16,812,883	4,653,996	1,589,369
Total comprehensive income attributable to:
Owners of the parent	16,753,253	4,594,099	1,565,581
Non-controlling interests	59,630	59,897	23,788
Total comprehensive income for the year, net of tax	R$ 16812883	R$ 4653996	R$ 1589369

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - BRL (R$) R$ in Thousands	Total Parent company's interest	Capital	Treasury Stocks	Capital Reserve.	Legal reserve	Tax Incentives Reserve	Investments and working capital reserve	Retained Earnings	Operations with noncontrolling interests	Gains and losses on net investment hedge	Gains and losses on financial instruments	Cumulative translation adjustment	Pension Plan	Stock Options	Non-controlling interests.	Total
Balance at beginning of year at Dec. 31, 2018	R$ 25730604	R$ 19249181	R$ 280426	R$ 11597	R$ 743421	R$ 628582	R$ 3434086	R$ 0	R$ 2870825	R$ 6044258	R$ 15564	R$ 11035964	R$ 320303	R$ 159149	R$ 207967	R$ 25938571
Net income (loss)	1,203,736	0	0	0	0	0	0	1,203,736	0	0	0	0	0	0	13,151	1,216,887
Other comprehensive income (loss) recognized in the year	361,845	0	0	0	0	0	0	0	0	(322,942)	3,502	726,845	(45,560)	0	10,637	372,482
Total comprehensive income (loss) recognized in the year	1,565,581	0	0	0	0	0	0	1,203,736	0	(322,942)	3,502	726,845	(45,560)	0	23,788	1,589,369
Stock option expenses recognized in the year	(13,249)	0	0	0	0	0	0	0	0	0	0	0	0	(13,249)	879	(12,370)
Stock option exercised during the year	29,405	0	37,884	0	0	0	(8,479)	0	0	0	0	0	0	0	6	29,411
Effect of interest changes in subsidiaries	0	0	0	0	0	0	0	0	0	0	0	0	0	0	(1,586)	(1,586)
Complementary Dividends	(101)	0	0	0	0	0	(101)	0	0	0	0	0	0	0	0	(101)
Destination of net income proposed to the shareholders
Legal reserve	0	0	0	0	55,876	0	0	(55,876)	0	0	0	0	0	0	0	0
Tax incentives reserve	0	0	0	0	0	86,216	0	(86,216)	0	0	0	0	0	0	0	0
Investments and working capital reserve	0	0	0	0	0	0	705,105	(705,105)	0	0	0	0	0	0	0	0
Dividends/interest on capital	(356,539)	0	0	0	0	0	0	(356,539)	0	0	0	0	0	0	(13,628)	(370,167)
Balance at end of year at Dec. 31, 2019	26,955,701	19,249,181	(242,542)	11,597	799,297	714,798	4,130,611	0	(2,870,825)	(6,367,200)	(12,062)	11,762,809	(365,863)	145,900	217,426	27,173,127
Net income (loss)	2,365,763	0	0	0	0	0	0	2,365,763	0	0	0	0	0	0	22,291	2,388,054
Other comprehensive income (loss) recognized in the year	2,228,336	0	0	0	0	0	0	0	0	(2,504,914)	(1,972)	4,787,263	(52,041)	0	37,606	2,265,942
Total comprehensive income (loss) recognized in the year	4,594,099	0	0	0	0	0	0	2,365,763	0	(2,504,914)	(1,972)	4,787,263	(52,041)	0	59,897	4,653,996
Stock option expenses recognized in the year	15,375	0	0	0	0	0	0	0	0	0	0	0	0	15,375	15	15,390
Stock option exercised during the year	9,596	0	13,233	0	0	0	(3,637)	0	0	0	0	0	0	0	0	9,596
Effect of interest changes in subsidiaries	0	0	0	0	0	0	0	0	0	0	0	0	0	0	12,776	12,776
Complementary Dividends	(13)	0	0	0	0	0	(13)	0	0	0	0	0	0	0	0	(13)
Destination of net income proposed to the shareholders
Legal reserve	0	0	0	0	109,649	0	0	(109,649)	0	0	0	0	0	0	0	0
Tax incentives reserve	0	0	0	0	0	172,792	0	(172,792)	0	0	0	0	0	0	0	0
Investments and working capital reserve	0	0	0	0	0	0	1,368,835	(1,368,835)	0	0	0	0	0	0	0	0
Dividends/interest on capital	(714,487)	0	0	0	0	0	0	(714,487)	0	0	0	0	0	0	(65,175)	(779,662)
Balance at end of year at Dec. 31, 2020	30,860,271	19,249,181	(229,309)	11,597	908,946	887,590	5,495,796	0	(2,870,825)	(8,872,114)	(14,034)	16,550,072	(417,904)	161,275	224,939	31,085,210
Net income (loss)	15,494,111	0	0	0	0	0	0	15,494,111	0	0	0	0	0	0	64,827	15,558,938
Other comprehensive income (loss) recognized in the year	1,259,142	0	0	0	0	0	0	0	0	(695,102)	1,907	1,699,980	252,357	0	(5,197)	1,253,945
Total comprehensive income (loss) recognized in the year	16,753,253	0	0	0	0	0	0	15,494,111	0	(695,102)	1,907	1,699,980	252,357	0	59,630	16,812,883
Stock option expenses recognized in the year	(138,193)	0	0	0	0	0	0	0	0	0	0	0	0	(138,193)	(59)	(138,252)
Stock option exercised during the year	143,929	0	76,900	0	0	0	67,029	0	0	0	0	0	0	0	53	143,982
Effect of interest changes in subsidiaries	0	0	0	0	0	0	0	0	0	0	0	0	0	0	(18,962)	(18,962)
Complementary Dividends	(528)	0	0	0	0	0	(528)	0	0	0	0	0	0	0	0	(528)
Destination of net income proposed to the shareholders
Legal reserve	0	0	0	0	756,334	0	0	(756,334)	0	0	0	0	0	0	0	0
Tax incentives reserve	0	0	0	0	0	367,430	0	(367,430)	0	0	0	0	0	0	0	0
Investments and working capital reserve	0	0	0	0	0	0	9,014,747	(9,014,747)	0	0	0	0	0	0	0	0
Dividend - adjustment in excess of the minimum estatutory undistributed	0	0	0	0	0	0	341,150	(341,150)	0	0	0	0	0	0	0	0
Dividends/interest on capital	(5,014,450)	0	0	0	0	0	0	(5,014,450)	0	0	0	0	0	0	(54,234)	(5,068,684)
Balance at end of year at Dec. 31, 2021	R$ 42604282	R$ 19249181	R$ 152409	R$ 11597	R$ 1665280	R$ 1255020	R$ 14918194	R$ 0	R$ 2870825	R$ 9567216	R$ 12127	R$ 18250052	R$ 165547	R$ 23082	R$ 211367	R$ 42815649

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net income for the year	R$ 15558938	R$ 2388054	R$ 1216887
Adjustments to reconcile net income for the year to net cash provided by operating activities
Depreciation and amortization	2,658,561	2,499,104	2,074,295
Impairment of assets	0	411,925	0
Equity in earnings of unconsolidated companies	(563,158)	(152,569)	17,050
Exchange variation, net	108,373	204,291	247,555
Gains and losses on derivative financial instruments, net	(17,928)	774	15,118
Post-employment benefits	255,477	203,689	165,487
Long-term incentive plans	65,289	62,801	43,895
Income tax	4,713,630	1,107,624	457,833
(Gains) Losses on disposal of property, plant and equipment	(77,417)	(18,482)	2,129
Results in operations with subsidiary and joint ventures	162,913	0	0
Impairment of financial assets	(357)	64,132	21,044
Provision (reversal) of tax, civil, labor and environmental liabilities, net	125,641	477,518	38,417
Tax credits recovery	(1,182,082)	(1,358,744)	(402,499)
Interest income on short-term investments	(170,671)	(99,359)	(72,784)
Interest expense on loans	1,059,841	1,022,460	938,120
Interest on loans with related parties	(6,089)	(8,277)	(4,767)
(Reversal) Provision for net realisable value adjustment in inventory	(2,812)	(40,697)	24,665
Cash flows from operations before changes in working capital	22,688,149	6,764,244	4,782,445
Changes in assets and liabilities
(Increase) Decrease in trade accounts receivable	(1,614,047)	(527,722)	656,831
(Increase) Decrease in inventories	(7,704,329)	(428,263)	1,556,713
Increase (Decrease) in trade accounts payable	2,534,329	1,014,800	(642,699)
Decrease in other receivables	290,658	369,076	146,825
(Decrease) Increase in other payables	(317,658)	182,934	(462,906)
Dividends from joint ventures	117,438	94,937	44,037
Purchases of short-term investments	(3,010,084)	(3,224,158)	(3,676,744)
Proceeds from maturities and sales of short-term investments	3,595,212	3,924,799	521,616
Cash provided by operating activities	16,579,668	8,170,647	2,926,118
Interest paid on loans and financing	(1,100,826)	(1,079,981)	(945,027)
Interest paid on lease liabilities	(68,789)	(61,727)	(83,620)
Income and social contribution taxes paid	(2,893,120)	(621,033)	(254,679)
Net cash provided by operating activities	12,516,933	6,407,906	1,642,792
Cash flows from investing activities
Purchases of property, plant and equipment	(3,026,023)	(1,650,778)	(1,746,600)
Proceeds from sales of property, plant and equipment, investments and other intangibles	82,635	61,275	21,805
Additions in other intangibles	(166,310)	(154,250)	(100,313)
Advance for future investment in joint venture	0	0	(94,687)
Capital decrease (increase) in joint venture	113,595	(42,782)	20,344
Payment for business combination	0	(442,542)	0
Net cash used by investing activities	(2,996,103)	(2,229,077)	(1,899,451)
Cash flows from financing activities
Dividends and interest on capital paid	(5,339,426)	(274,815)	(484,173)
Proceeds from loans and financing	609,703	3,120,745	5,585,573
Repayment of loans and financing	(5,116,621)	(5,084,028)	(4,885,083)
Leasing payment	(275,854)	(247,914)	(161,824)
Intercompany loans, net	139,556	(7,777)	(64,089)
Net cash used in financing activities	(9,982,642)	(2,493,789)	(9,596)
Exchange variation on cash and cash equivalents	5,262	290,512	17,763
(Decrease) Increase in cash and cash equivalents	(456,550)	1,975,552	(248,492)
Cash and cash equivalents at beginning of year	4,617,204	2,641,652	2,890,144
Cash and cash equivalents at end of year	R$ 4160654	R$ 4617204	R$ 2641652

GENERAL INFORMATION

GENERAL INFORMATION	12 Months Ended
	Dec. 31, 2021
GENERAL INFORMATION
GENERAL INFORMATION	NOTE 1 — GENERAL INFORMATION Gerdau S.A. is a publicly traded corporation (sociedade anônima) The Consolidated Financial Statements of Gerdau S.A and subsidiaries were approved by the Board of Directors on March 30, 2022.

CONSOLIDATED FINANCIAL STATEMEN

CONSOLIDATED FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2021
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS	NOTE 3 — CONSOLIDATED FINANCIAL STATEMENTS 3.1 — Subsidiaries Listed below are the significant consolidated subsidiaries: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Interests Consolidated company Country ​ Total capital (*) ​ ​ ​ 2021 2020 2019 Gerdau GTL Spain S.L. Spain 100.00 100.00 100.00 Gerdau Internacional Empreendimentos Ltda. - Grupo Gerdau Brazil 100.00 100.00 100.00 Gerdau Ameristeel Corporation and subsidiaries (1) USA/Canada 100.00 100.00 100.00 Gerdau Açominas S.A. Brazil 99.86 99.86 99.83 Gerdau Aços Longos S.A. and subsidiaries (2) Brazil 99.83 99.82 99.82 Gerdau Steel Inc. Canada 100.00 100.00 100.00 Gerdau Holdings Inc. and subsidiary (3) USA 100.00 100.00 100.00 Paraopeba - Fixed-income investment fund (4) (**) Brazil 70.62 89.26 96.96 Gerdau Hungria Holdings Limited Liability Company Hungary 100.00 100.00 100.00 GTL Equity Investments Corp. British Virgin Islands 100.00 100.00 100.00 Empresa Siderúrgica del Perú S.A.A. - Siderperú Peru 90.03 90.03 90.03 Gerdau GTL México, S.A. de C.V. and subsidiary (5) Mexico 100.00 100.00 100.00 Seiva S.A. - Florestas e Indústrias Brazil 97.73 97.73 97.73 Gerdau Laisa S.A. Uruguai 100.00 100.00 100.00 Sipar Gerdau Inversiones S.A. Argentina 99.99 99.99 99.99 Sipar Aceros S.A. and subsidiary (6) Argentina 99.98 99.98 99.98 Sizuca - Siderúrgica Zuliana, C. A. Venezuela 100.00 100.00 100.00 GTL Trade Finance Inc. British Virgin Islands 100.00 100.00 100.00 Gerdau Trade Inc. British Virgin Islands 100.00 100.00 100.00 Gerdau Next S.A. and subsidiaries (7) ​ Brazil ​ 100.00 ​ — ​ — (*) The voting capital is substantially equal to the total capital. The interests reported represent the ownership percentage held directly and indirectly in the subsidiary. (**) The percentage of participation including interest of the parent company Metalúrgica Gerdau S.A. in the investment fund is 73.54% in 2021, 92.58% in 2020 and 98.07% in 2019 . (1) Subsidiaries: Gerdau Ameristeel US Inc., Chaparral Steel Company. (2) Subsidiaries: Gerdau Açominas Overseas Ltd. and Siderúrgica Latino-Americana S.A. (3) Subsidiary: Gerdau MacSteel Inc. (4) Fixed-income investment fund managed by Bank JP Morgan S.A. (5) Subsidiary: GTL Servicios Administrativos México, S.A. de C.V. (6) Subsidiary: Siderco S.A. (7) Subsidiaries: G2L Logística Ltda, G2base Fundações e Contenções Ltda and Gerdau Grafeno Ltda. ​ ​ In March 2022, the Company sold 100% of its interest in the subsidiary Sizuca - Siderúrgica Zuliana C.A., located in Venezuela. 3.2 — Joint ventures Listed below are the interests in joint ventures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Interests ​ ​ ​ ​ Total capital (*) Joint ventures Country 2021 2020 2019 Bradley Steel Processors Canada 50.00 50.00 50.00 MRM Guide Rail Canada 50.00 50.00 50.00 Gerdau Corsa S.A.P.I. de CV Mexico 75.00 70.00 70.00 Gerdau Metaldom Corp. Dominican Rep. 50.00 50.00 50.00 Gerdau Summit Aços Fundidos e Forjados S.A. ​ Brazil ​ 58.73 ​ 58.73 ​ 58.73 Diaco S.A. ​ Colombia ​ 49.87 ​ 49.87 ​ 49.87 Juntos Somos Mais Fidelização S.A. ​ Brazil ​ 27.50 ​ 27.50 ​ 27.50 (*) The voting capital is substantially equal to the total capital. The interests reported represent the ownership percentage held directly and indirectly held in the joint venture. As a result of the corporate reorganization described in Note 3.4, the Company increased its interest in Gerdau Corsa from 70% to 75%, maintaining joint control of this company together with Grupo Córdova. The amount of the additional interest in Gerdau Corsa was R$ 511,514 and it was recorded in the investment account, as described in Note 9. ​ The summarized financial information of these joint ventures, accounted for under the equity method, is shown on a combined basis as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Joint ventures ​ 2021 2020 2019 Net income (loss) 959,116 249,158 ​ (21,548) Total comprehensive income (loss) 959,116 249,158 ​ (21,548) ​ During the year of 2019, the Company made a capital increase in the company Gerdau Corsa S.A.P.I. of C.V. in the amount of R$ 463,990, which resulted in the change of the participation held by the Company in this company to 70.0%, maintaining joint control, according to the shareholders' agreement. ​ 3.3 — Associate companies Listed below are the interests in associate companies: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity interests ​ ​ ​ ​ Total capital (*) Associate company Country 2021 2020 2019 Dona Francisca Energética S.A. Brazil 51.82 51.82 51.82 (*) The voting capital is substantially equal to the total capital. The interests reported represent the ownership percentage held directly and indirectly. Although the Company owns more than 50% of Dona Francisca Energética S.A., it does not consolidate the financial statements of this associate because of the veto rights granted to minority shareholders that prevent the Company from controlling the decisions in conducting the associate’s business. The summarized financial information of the associate companies, accounted for under the equity method, is shown on a combined basis as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Associate company ​ 2021 2020 2019 Net income 37,231 42,008 ​ 31,249 Total comprehensive income 37,231 42,008 ​ 31,249 ​ During the year of 2019 the associate company Corsa Controladora, S.A. de C.V. was merged into the joint venture Gerdau Corsa S.A.P.I. de C.V. 3.4 — Results in operations with subsidiary and joint ventures On November 30, 2021, the Company, together with Grupo Córdova (comprised of Corcre, S.A.P.I. de C.V. and Juan Angel Córdova Creel), concluded the stages of the corporate reorganization of operations in Mexico involving its subsidiary Sidertúl, S.A. de C.V. ( Sidertúl) and the joint venture Gerdau Corsa, S.A.P.I. de C.V. (Gerdau Corsa) and its subsidiary Aceros Corsa, S.A. de C.V. (Aceros Corsa). The corporate reorganization was approved by the shareholders of the companies involved, as well as by the Comisión Federal de Competencia Económica – COFECE and took effect as of December 1, 2021. The corporate reorganization of the companies Sidertúl and Aceros Corsa by Gerdau Corsa is part of the process of reorganization and simplification of the corporate structure in Mexico, with the objective of: (i) strengthening the financial structure of Gerdau Corsa, with the reduction of leverage and financial expenses; (ii) centralizing the main business activities, generating greater operational efficiency for the companies involved; and (iii) optimizing internal processes, creating synergy in activities and economies of scale by reducing administrative, operational and tax costs. Additionally, the corporate reorganization reinforces the Company's commitment to its operations in Mexico. As a result of the corporate reorganization, the Company increased its interest in Gerdau Corsa from 70% to 75%, maintaining joint control of this company with Grupo Córdova. As a result of this corporate reorganization of operations in Mexico, the Company recognized a gain of R$ 193,651, which is calculated as the difference between the carrying amount and the fair value of Sidertúl and R$ 193,334 for the recycling to income of the cumulative translation adjustments, which is required as the Company lost Sidertúl control, as presented in the statement of comprehensive income. The corporate reorganization resulted in the loss of control of Sidertúl and as required by IFRS, the Company carried out a proportional write-off of goodwill from the North America segment in the amount of R$ 549,898, as described in Note 11, measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained. The net result of this corporate reorganization was an expense of R$ 162,913 recognized in the line of Results in operations with subsidiary and joint ventures. 3.5 — Acquisition of subsidiary On November 30, 2020, the Company, through its subsidiary Gerdau Aços Longos SA, concluded, after complying with the respective precedent conditions, including the approval of the Administrative Council for Economic Defense - CADE, the acquisition of 96.35% of the total and voting shares issued by Siderúrgica Latino-Americana S.A. (“Silat”) for R$ 475,961, using cash resources. Silat is in Caucaia, in the metropolitan region of Fortaleza, State of Ceará and has an annual installed capacity of 600 thousand tons of long steel rolled. Through this transaction, Gerdau reinforces its long-term strategy and its position in the steel value chain through investments and acquisitions. The addition of this new unit helps the Company in the supply equation for the Brazilian market as a whole, as it is associated with our other capacities in the Northeast and Southeast regions. The Company concluded the fair value assessment of the assets and liabilities of Silat and the following table summarizes the fair value of such assets and liabilities at the date of business combination: ​ ​ ​ ​ ​ ​ ​ ​ Book Value Acquisition Adjustments Fair value upon acquisition ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ 33,419 ​ — ​ 33,419 Trade accounts receivable - net ​ 13,190 ​ — ​ 13,190 Inventories ​ 24,160 ​ — ​ 24,160 Other current assets ​ 11,091 ​ — ​ 11,091 Property, plant and equipment ​ 233,541 ​ 253,216 ​ 486,757 Other non-current assets ​ 34,410 ​ — ​ 34,410 Current liabilities ​ (26,638) ​ — ​ (26,638) Non-current liabilities ​ (359) ​ (86,093) ​ (86,452) Non-controlling interest ​ (5,395) ​ (6,100) ​ (11,495) Assets (Liabilities) ​ 317,419 ​ 161,023 ​ 478,442 Negative Goodwill ​ — ​ (2,481) ​ (2,481) Net assets ​ 317,419 ​ 158,542 ​ 475,961 ​ Amounts related to net sales and accounts receivables, attributed to Silat and included in the Company’s Consolidated Financial Statements since the acquisition date are not material. Silat, since the acquisition date until December 31, 2020, did not generate significant amounts of net sales and net income. In addition, the amount of net sales and net profit generated by this entity during the period ended December 31, 2020, had it been acquired at the beginning of that period, would not have been material. The negative goodwill of R$2,481 was recorded in the Other operating income line in the Statements of Income. 3.6 - Total purchase price considered for the 2020 acquisition ​ ​ ​ ​ Subsidiary acquired 2020 Siderúrgica Latino-Americana S.A. 475,961 Total consideration paid 475,961 Less: Cash and cash equivalents of acquired subsidiary (33,419) ​ 442,542 ​

CASH AND CASH EQUIVALENTS, AND

CASH AND CASH EQUIVALENTS, AND SHORT AND LONG-TERM INVESTMENTS	12 Months Ended
	Dec. 31, 2021
CASH AND CASH EQUIVALENTS, AND SHORT AND LONG-TERM INVESTMENTS
CASH AND CASH EQUIVALENTS, AND SHORT AND LONG-TERM INVESTMENTS	NOTE 4 — CASH AND CASH EQUIVALENTS, AND SHORT AND LONG-TERM INVESTMENTS ​ ​ ​ ​ ​ ​ ​ 2021 2020 Cash 14,667 9,060 Banks and immediately available investments 4,145,987 4,608,144 Cash and cash equivalents 4,160,654 4,617,204 ​ Immediately available investments include investments with maturity up to 90 days at the time of acquisition, immediate liquidity and low risk of fair value variation. ​ ​ ​ ​ ​ ​ 2021 2020 Short-term investments 2,626,212 3,041,143 ​ Short-term investments include Bank Deposit Certificates and marketable securities, which are stated at their fair value. Income generated by these investments is recorded as financial income.

TRADE ACCOUNTS RECEIVABLE

TRADE ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2021
TRADE ACCOUNTS RECEIVABLE.
TRADE ACCOUNTS RECEIVABLE	NOTE 5 — TRADE ACCOUNTS RECEIVABLE ​ ​ ​ ​ ​ ​ ​ 2021 2020 Trade accounts receivable - in Brazil 2,640,011 2,081,740 Trade accounts receivable - exports from Brazil 249,834 26,121 Trade accounts receivable - outside of Brazil 2,632,002 1,766,555 (-) Impairment loss on trade receivables (107,772) (137,146) ​ 5,414,075 3,737,270 ​ Accounts receivable by aging are as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 Current 4,646,175 3,466,000 Past-due: Up to 30 days 494,866 259,756 From 31 to 60 days 139,415 48,905 From 61 to 90 days 32,245 9,355 From 91 to 180 days 169,959 13,636 From 181 to 360 days 8,220 15,899 Above 360 days 30,967 60,865 (-) Impairment on financial assets (107,772) (137,146) ​ 5,414,075 3,737,270 ​ The changes in the impairment on financial assets are as follows: ​ ​ ​ ​ Balance as of January 1, 2019 (158,157) Impairment on financial assets during the year (81,243) Recoveries in the year 60,199 Write-offs 78,635 Exchange variation ​ 2,487 Balance as of December 31, 2019 (98,079) Impairment on financial assets during the year (148,548) Recoveries in the year 84,416 Write-offs 36,210 Exchange variation ​ (11,145) Balance as of December 31, 2020 (137,146) Impairment on financial assets during the year (55,731) Recoveries in the year 56,088 Write-offs ​ 9,892 Loss of control of subsidiary (note 3.4) ​ 23,203 Exchange variation ​ (4,078) Balance as of December 31, 2021 (107,772) ​ The Company’s maximum exposure to credit risk, net of impairment on financial assets, is the amount of accounts receivable. The credit quality of accounts receivable to maturity is considered adequate, and the value of the effective risk of possible losses on accounts receivable from customers is presented as impairment on financial assets.

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2021
INVENTORIES
INVENTORIES	NOTE 6 — INVENTORIES ​ ​ ​ ​ ​ ​ ​ 2021 2020 Finished products 7,209,379 3,894,698 Work in progress 3,453,948 2,045,158 Raw materials 3,994,655 1,934,958 Storeroom supplies 1,061,666 786,401 Imports in transit 1,145,215 514,321 (-) Allowance for adjustments to net realizable value (3,375) (6,119) ​ 16,861,488 9,169,417 ​ The allowance for adjustment to net realizable value of inventories, on which the provision and write-offs are registered with impact on cost of sales, is as follows: ​ ​ ​ ​ Balance as of January 1, 2019 (13,704) Provision for the year (46,693) Reversal of adjustments to net realizable value 22,028 Exchange rate variation (939) Balance as of December 31, 2019 (39,308) Provision for the year (6,562) Reversal of adjustments to net realizable value 47,259 Exchange rate variation (7,508) Balance as of December 31, 2020 (6,119) Provision for the year (6,331) Reversal of adjustments to net realizable value 9,143 Exchange rate variation (68) Balance as of December 31, 2021 (3,375)

TAX CREDITS

TAX CREDITS	12 Months Ended
	Dec. 31, 2021
TAX CREDITS.
TAX CREDITS	NOTE 7 — TAX CREDITS ​ ​ ​ ​ ​ ​ ​ 2021 2020 Current ICMS (state VAT) 155,373 297,926 Social security financing 1,456,593 632,927 Financing of social integration program 226,477 171,724 IPI (federal VAT) 67,166 38,174 IVA (value-added tax) 126,281 24,500 Others 51,995 36,061 ​ 2,083,885 1,201,312 ​ ​ ​ ​ ​ Non-current ICMS (state VAT) 85,512 64,163 Social security financing 238 441,111 Financing of social integration program and Others 38,850 158,771 ​ 124,600 664,045 ​ 2,208,485 1,865,357 ​ The estimates of realization of non-current tax credits are as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 2022 — 584,145 2023 64,426 22,433 2024 ​ 40,853 ​ 8,054 2025 ​ 11,660 ​ 49,413 2026 on 7,661 — ​ 124,600 664,045 ​

INCOME AND SOCIAL CONTRIBUTION

INCOME AND SOCIAL CONTRIBUTION TAXES	12 Months Ended
	Dec. 31, 2021
INCOME AND SOCIAL CONTRIBUTION TAXES
INCOME AND SOCIAL CONTRIBUTION TAXES	NOTE 8 — INCOME AND SOCIAL CONTRIBUTION TAXES In Brazil, income taxes include federal income tax (IRPJ) and social contribution (CSLL), which represents an additional federal income tax. The statutory rates for income tax and social contribution are 25% and 9% , respectively, and are applicable for the years ended December 31, 2021, 2020 and 2019. The foreign subsidiaries of the Company are subject to taxation at rates ranging between 23% and 35% , without considering there are subsidiaries abroad with zero tax rate, which have mainly financial activities. The differences between the Brazilian tax rates and the rates of other countries are presented under “Difference in tax rates in foreign companies” in the reconciliation of income tax and social contribution below. a) Reconciliations of income and social contribution taxes at statutory rates to amounts presented in the Statement of Income are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Income (loss) before income taxes 20,272,568 3,495,678 1,674,720 ​ Statutory tax rates 34 % 34 % 34 % Income and social contribution taxes at statutory rates (6,892,673) (1,188,531) (569,405) ​ Tax adjustment with respect to: ​ - Difference in tax rates in foreign companies 403,431 530,715 75,428 ​ - Equity in earnings of unconsolidated companies 191,474 51,873 (5,797) ​ - Interest on equity* 406,022 98,739 69 ​ - Interests on tax lawsuits** ​ 551,624 ​ — ​ — ​ - Tax credits and incentives 112,521 31,800 8,852 ​ - Deferred tax assets not recognized / Realization, net ​ 482,497 ​ (587,917) ​ 1,097 ​ - Other permanent differences, net 31,474 (44,303) 31,923 ​ Income and social contribution taxes (4,713,630) (1,107,624) (457,833) ​ Current (4,306,223) (908,051) (240,400) ​ Deferred (407,407) (199,573) (217,433) ​ * Brazilian Law 9,249/95 provides that a company may, at its sole discretion, consider dividends distributions to shareholders to be considered as interest on own capital — subject to specific limitations - which has the effect of a taxable deduction in the determination of income tax and social contribution. The limitation is the greater of (i) shareholders’ equity multiplied by the TJLP (Long-Term Interest Rate) rate or (ii) 50% of the net income in the fiscal year. This expense is not recognized for the purpose of preparing the financial statements and therefore does not impact net income. ** b) Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of ​ Recognized in ​ ​ ​ Comprehensive ​ Balance as of ​ December 31, 2020 income Others Income December 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax loss carryforward ​ 1,220,485 ​ (556,480) ​ (24,312) ​ 10,156 ​ 649,849 Social contribution tax losses ​ 290,276 ​ (187,814) ​ 20,625 ​ — ​ 123,087 Provision for tax, civil and labor liabilities ​ 385,463 ​ 37,256 ​ — ​ 33 ​ 422,752 Benefits granted to employees ​ 392,257 ​ (35,812) ​ — ​ (57,828) ​ 298,617 Other temporary differences ​ 501,114 ​ (144,352) ​ — ​ 2,312 ​ 359,074 Deferred exchange variance* ​ 1,057,541 ​ 511,763 ​ — ​ 7 ​ 1,569,311 Provision for losses ​ 35,520 ​ 6,576 ​ — ​ (5,832) ​ 36,264 Fair value adjustments on businesses acquired ​ (550,864) ​ (38,544) ​ — ​ (39,213) ​ (628,621) ​ ​ 3,331,792 ​ (407,407) ​ (3,687) ​ (90,365) ​ 2,830,333 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets ​ 3,393,354 ​ ​ ​ ​ ​ ​ 2,929,308 Non-current liabilities ​ (61,562) ​ ​ ​ ​ ​ ​ (98,975) * Corresponds to deferred taxes over foreign exchange gains and loss which certain subsidiaries elected to tax on a cash basis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of ​ Recognized in ​ Acquisition of ​ Comprehensive ​ Balance as of ​ December 31, 2019 income subsidiary Income December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax loss carryforward ​ 1,341,464 ​ (157,207) ​ — ​ 36,228 ​ 1,220,485 Social contribution tax losses ​ 350,810 ​ (60,534) ​ — ​ — ​ 290,276 Provision for tax, civil and labor liabilities ​ 242,794 ​ 140,871 ​ — ​ 1,798 ​ 385,463 Benefits granted to employees ​ 294,031 ​ (6,848) ​ — ​ 105,074 ​ 392,257 Other temporary differences ​ 575,719 ​ (114,627) ​ — ​ 40,022 ​ 501,114 Deferred exchange variance* ​ 1,177,428 ​ (119,178) ​ — ​ (709) ​ 1,057,541 Provision for losses ​ 23,618 ​ 11,740 ​ — ​ 162 ​ 35,520 Fair value adjustments on businesses acquired ​ (452,058) ​ 106,210 ​ (86,093) ​ (118,923) ​ (550,864) ​ ​ 3,553,806 ​ (199,573) ​ (86,093) ​ 63,652 ​ 3,331,792 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets ​ 4,071,219 ​ ​ ​ ​ 3,393,354 Non-current liabilities ​ (517,413) ​ ​ ​ ​ (61,562) * Corresponds to deferred taxes over foreign exchange gains and loss which certain subsidiaries elected to tax on a cash basis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of ​ Recognized in ​ ​ ​ Comprehensive ​ Balance as of ​ January 1, 2019 income Others Income December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax loss carryforward ​ 1,339,933 ​ 4,781 ​ (36,226) ​ 32,976 ​ 1,341,464 Social contribution tax losses ​ 337,258 ​ 13,552 ​ — ​ — ​ 350,810 Provision for tax, civil and labor liabilities ​ 270,417 ​ (27,848) ​ — ​ 225 ​ 242,794 Benefits granted to employees ​ 286,494 ​ (29,739) ​ — ​ 37,276 ​ 294,031 Other temporary differences ​ 525,818 ​ 73,067 ​ — ​ (23,166) ​ 575,719 Deferred exchange variance* ​ 1,284,377 ​ (106,640) ​ — ​ (309) ​ 1,177,428 Provision for losses ​ 83,837 ​ (75,142) ​ — ​ 14,923 ​ 23,618 Fair value adjustments on businesses acquired ​ (372,448) ​ (69,464) ​ — ​ (10,146) ​ (452,058) ​ ​ 3,755,686 ​ (217,433) ​ (36,226) ​ 51,779 ​ 3,553,806 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets ​ 3,874,054 ​ ​ ​ ​ ​ ​ ​ 4,071,219 Non-current liabilities ​ (118,368) ​ ​ ​ ​ ​ ​ ​ (517,413) * Corresponds to deferred taxes over foreign exchange gains and loss which certain subsidiaries elected to tax on a cash basis The recoverability analysis of deferred tax balances related to tax loss carryforward and social contribution tax losses performed by the Company and approved by its Board of Directors are based on its business plans and aligned with other projections and analysis performed by the Company as, for example, the impairment of assets tests. c) Unrecognized deferred income tax assets: ​ Due to the lack of expectation to use tax losses, negative social contribution base and deferred exchange variation arising from some operations in Brazil, the Company did not recognize a portion of tax assets of R$240,231 (R$764,845 on December 31, 2020), which do not have an expiration date. The subsidiaries abroad had R$1,256,438 (R$1,180,067 as of December 31, 2020) of tax credits on capital losses for which deferred tax assets have not been recognized and which expire between 2029 and 2035 and also several Unrecognized tax loss carryforwards from state credits in the United States in the amount of R$1,285,373 (R$1,623,459 as of December 31, 2020), which expire at various dates between 2022 and 2040.

INVESTMENTS IN ASSOCIATES AND J

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES	12 Months Ended
	Dec. 31, 2021
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES	NOTE 9 — INVESTMENTS IN ASSOCIATES AND JOINT VENTURES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in ​ Investments in ​ Investments in ​ ​ ​ ​ ​ ​ North America South America Special Steel ​ Others Total Balance as of January 1, 2019 301,272 ​ 701,233 ​ 213,899 ​ ​ 151,398 ​ 1,367,802 Equity in earnings ​ (111,637) ​ 66,468 ​ 6,779 ​ ​ 21,340 ​ (17,050) Other comprehensive income 28,182 ​ 21,282 ​ 3,523 ​ ​ 2,051 ​ 55,038 Capital increase 463,990 ​ — ​ — ​ ​ 7,000 ​ 470,990 Capital reduction ​ — ​ (20,344) ​ ​ ​ ​ ​ ​ (20,344) Dividends/Interest on equity — ​ (20,247) ​ — ​ ​ (23,790) ​ (44,037) Balance as of December 31, 2019 681,807 ​ 748,392 ​ 224,201 ​ ​ 157,999 ​ 1,812,399 Equity in earnings ​ 23,494 ​ 99,913 ​ 8,900 ​ ​ 20,262 ​ 152,569 Other comprehensive income 165,479 ​ 195,286 ​ (1,949) ​ ​ — ​ 358,816 Capital increase 42,782 ​ - ​ — ​ ​ — ​ 42,782 Dividends/Interest on equity (5,223) ​ (67,546) ​ — ​ ​ (22,168) ​ (94,937) Balance as of December 31, 2020 908,339 ​ 976,045 ​ 231,152 ​ ​ 156,093 ​ 2,271,629 Equity in earnings ​ 279,948 ​ 268,291 ​ 28,831 ​ ​ (13,912) ​ 563,158 Other comprehensive income 173,934 ​ 52,278 ​ 710 ​ ​ (1,415) ​ 225,507 Capital increase — ​ — ​ — ​ ​ 27,500 ​ 27,500 Capital decrease ​ — ​ (141,095) ​ — ​ ​ — ​ (141,095) Results in operations with subsidiary and joint ventures (note 3.4) ​ 511,514 ​ — ​ — ​ ​ — ​ 511,514 Dividends/Interest on equity (2,460) ​ (84,186) ​ (9,025) ​ ​ (21,767) ​ (117,438) Balance as of December 31, 2021 1,871,275 ​ 1,071,333 ​ 251,668 ​ ​ 146,499 ​ 3,340,775 ​

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2021
PROPERTY, PLANT AND EQUIPMENT.
PROPERTY, PLANT AND EQUIPMENT	NOTE 10 — PROPERTY, PLANT AND EQUIPMENT a) Summary of changes in property, plant and equipment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and ​ ​ Land and ​ Machines, equipment, ​ Data electronic ​ equipment under ​ ​ ​ ​ Cost of the property, plant, and equipment ​ buildings ​ and installations ​ equipment ​ construction ​ Other ​ Total Balances as of January 1, 2019 8,700,749 29,608,998 753,078 1,021,247 988,114 41,072,186 Additions 28,449 76,756 13,955 1,506,343 121,097 1,746,600 Capitalized interest — — — 24,676 — 24,676 Transfers 115,452 884,161 24,037 (1,038,693) 15,043 — Disposals (54,699) (165,139) (1,890) (40,314) (105,643) (367,685) Foreign exchange effect 122,992 626,432 13,369 42,470 10,797 816,060 Balances as of December 31, 2019 8,912,943 31,031,208 802,549 1,515,729 1,029,408 43,291,837 Additions 50,848 98,372 9,765 1,369,947 121,846 1,650,778 Capitalized interest — — — 24,622 — 24,622 Transfers 207,551 695,512 13,653 (939,231) 22,515 — Disposals (226,920) (505,580) (11,487) — (144,153) (888,140) Business Combination ​ 275,076 ​ 173,453 ​ 29 ​ 36,563 ​ 1,636 ​ 486,757 Impairment of non-financial assets ​ (198,196) ​ (213,729) ​ — ​ — ​ — ​ (411,925) Foreign exchange effect 918,554 3,621,233 107,634 246,575 47,285 4,941,281 Balances as of December 31, 2020 9,939,856 34,900,469 922,143 2,254,205 1,078,537 49,095,210 Additions 20,661 159,387 21,595 2,649,417 174,963 3,026,023 Capitalized interest — — — 32,876 — 32,876 Transfers 224,789 1,125,706 48,827 (1,405,597) 6,275 — Disposals (41,475) (383,593) (2,982) (19,462) (87,574) (535,086) Loss of control of subsidiary (note 3.4) ​ (168,222) ​ (414,955) ​ (2,545) ​ (7,143) ​ (5,367) ​ (598,232) Foreign exchange effect 245,005 1,476,437 32,978 116,633 18,088 1,889,141 Balances as of December 31, 2021 10,220,614 36,863,451 1,020,016 3,620,929 1,184,922 52,909,932 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and ​ ​ ​ Land and ​ Machines, equipment, ​ Data electronic ​ equipment under ​ ​ ​ ​ Accumulated depreciation ​ buildings ​ and installations ​ equipment ​ construction ​ Other ​ Total Balances as of January 1, 2019 (4,181,805) (20,366,821) (686,946) — (290,133) (25,525,705) Depreciation (295,615) (1,136,040) (33,143) — (112,384) (1,577,182) Transfers — (20) — — 20 — Disposals 38,826 145,019 1,818 — 105,272 290,935 Foreign exchange effect (74,868) (483,549) (12,151) — (7,824) (578,392) Balances as of December 31, 2019 (4,513,462) (21,841,411) (730,422) — (305,049) (27,390,344) Depreciation (413,252) (1,354,559) (37,616) — (100,210) (1,905,637) Disposals 223,174 497,434 11,169 — 128,833 860,610 Foreign exchange effect (440,999) (2,835,685) (100,806) — (29,434) (3,406,924) Balances as of December 31, 2020 (5,144,539) (25,534,221) (857,675) — (305,860) (31,842,295) Depreciation (383,122) (1,468,513) (41,973) — (163,803) (2,057,411) Transfers ​ 6,693 ​ (1,201) ​ — ​ — ​ (5,492) ​ — Disposals ​ 23,046 ​ 369,173 ​ 2,981 ​ — ​ 86,064 ​ 481,264 Loss of control of subsidiary (note 3.4) ​ 84,286 ​ 332,312 ​ 2,542 ​ — ​ 3,462 ​ 422,602 Foreign exchange effect (126,758) (1,006,607) (28,879) — (10,062) (1,172,306) Balances as of December 31, 2021 (5,540,394) ​ (27,309,057) ​ (923,004) ​ — ​ (395,691) ​ (34,168,146) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net property, plant and equipment ​ ​ ​ ​ ​ Balances as of December 31, 2019 4,399,481 9,189,797 72,127 1,515,729 724,359 15,901,493 Balances as of December 31, 2020 4,795,317 9,366,248 64,468 2,254,205 772,677 17,252,915 Balances as of December 31, 2021 4,680,220 9,554,394 97,012 3,620,929 789,231 18,741,786 ​ The average rate of capitalized interest in 2021 was 3.3% (3.8% in 2020 and 6.0% in 2019). The following useful lives are used to calculate depreciation: ​ ​ ​ ​ ​ Useful lives of ​ ​ property, ​ ​ plant and equipment Buildings 10 to 33 years Machines, equipment, and installations 10 to 20 years Furniture and fixture 5 to 10 years Vehicles 3 to 5 years Data electronic equipment 2.5 to 6 years ​ b) Guarantees c) Impairment of property, plant and equipment

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2021
GOODWILL.
GOODWILL	NOTE 11 — GOODWILL The changes in goodwill are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated Goodwill after ​ ​ Goodwill ​ impairment losses ​ Impairment losses Balance as of January 1, 2019 16,783,958 (7,671,568) 9,112,390 (+/-) Foreign exchange effect 661,247 (304,326) 356,921 Balance as of December 31, 2019 17,445,205 (7,975,894) 9,469,311 (+/-) Foreign exchange effect 4,976,383 (2,342,175) 2,634,208 Balance as of December 31, 2020 22,421,588 (10,318,069) 12,103,519 (+/-) Foreign exchange effect 1,469,190 (595,284) 873,906 Results in operations with subsidiary and joint ventures (note 3.4) ​ (549,898) ​ — ​ (549,898) Balance as of December 31, 2021 23,340,880 (10,913,353) 12,427,527 ​ The amounts of goodwill by segment are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Brazil 373,135 373,135 373,135 Special Steel 4,111,619 3,828,841 2,969,752 North America 7,942,773 7,901,543 6,126,424 ​ 12,427,527 12,103,519 9,469,311 ​

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2021
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE 12 — INTANGIBLE ASSETS Intangible assets consist mainly of relationships with customers and suppliers recognized upon business combinations and software development, with application in the management of the business: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer ​ ​ ​ ​ Supplier ​ Software ​ contracts and ​ ​ ​ ​ ​ ​ relationships ​ development ​ relationships ​ Others ​ Total Balance as of January 01, 2019 26,719 415,640 387,299 6,438 836,096 Foreign exchange effect — 6,137 12,586 472 19,195 Acquisition — 100,313 — — 100,313 Amortization (5,304) (157,278) (116,462) (3,298) (282,342) Balance as of December 31, 2019 21,415 364,812 283,423 3,612 673,262 Foreign exchange effect — 42,890 83,806 1,074 127,770 Acquisition — 154,250 — — 154,250 Amortization (4,637) (188,083) (136,525) (3,459) (332,704) Balance as of December 31, 2020 16,778 373,869 230,704 1,227 622,578 Foreign exchange effect — 17,609 13,247 33 30,889 Acquisition — 166,310 — — 166,310 Amortization (4,055) (177,674) (127,028) (1,260) (310,017) Balance as of December 31, 2021 12,723 380,114 116,923 — 509,760 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated useful lives 5 to 20 years up to 5 years 5 to 20 years 5 years ​ The composition of other intangible assets by segment is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Brazil 207,053 220,303 238,243 Special Steel 130,719 156,557 132,934 South America 1,039 1,534 1,729 North America 170,949 244,184 300,356 ​ 509,760 622,578 673,262 ​

LEASING

LEASING	12 Months Ended
	Dec. 31, 2021
LEASING
LEASING	NOTE 13 — LEASING ​ a) Summary of changes in the leasing assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Machines, equipment, ​ Data electronic ​ ​ ​ ​ Right-of-use Cost Land and buildings and installations equipment Others Total Balances as of January 1, 2019 ​ 243,250 ​ 436,401 ​ 106,787 ​ 49,930 ​ 836,368 Additions 14,062 117,653 742 11,064 143,521 Disposals (10,493) (22,993) (162) (1,907) (35,555) Remeasurements 33,322 (2,346) — 1,236 32,212 Foreign exchange effect 3,853 4,571 46 2,119 10,589 Balances as of December 31, 2019 283,994 533,286 107,413 62,442 987,135 Additions 5,670 185,116 175 43,862 234,823 Disposals (14,583) (14,846) — (1,176) (30,605) Remeasurements 111 (3,035) 12,548 69 9,693 Foreign exchange effect 26,748 37,809 340 15,747 80,644 Balances as of December 31, 2020 301,940 738,330 120,476 120,944 1,281,690 Additions 48,504 135,652 291 36,599 221,046 Disposals (5,621) (109,947) (151) (22,066) (137,785) Remeasurements 40,024 55,866 6,456 4,045 106,391 Loss of control of subsidiary (note 3.4) ​ — ​ (2,894) ​ (302) ​ — ​ (3,196) Foreign exchange effect 8,152 13,828 111 8,599 30,690 Balances as of December 31, 2021 392,999 830,835 126,881 148,121 1,498,836 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Machines, equipment, ​ Data electronic ​ ​ ​ ​ Accumulated depreciation Land and buildings and installations equipment Others Total Balances as of January 1, 2019 — ​ — — — — Depreciation (50,080) (127,399) (15,419) (21,873) (214,771) Disposals 1,330 4,250 32 976 6,588 Foreign exchange effect (733) (128) (9) (768) (1,638) Balances as of December 31, 2019 (49,483) (123,277) (15,396) (21,665) (209,821) Depreciation (51,451) (166,741) (15,459) (27,110) (260,761) Disposals 8,601 13,453 — 1,027 23,081 Foreign exchange effect (5,286) (8,091) (70) (5,431) (18,878) Balances as of December 31, 2020 (97,619) (284,656) (30,925) (53,179) (466,379) Depreciation (59,284) (186,300) (13,800) (31,750) (291,134) Disposals 3,668 108,532 97 21,334 133,631 Loss of control of subsidiary (note 3.4) ​ — ​ 1,860 ​ 230 ​ — ​ 2,090 Foreign exchange effect (3,574) (7,889) (45) (3,792) (15,300) Balances as of December 31, 2021 (156,809) (368,453) (44,443) (67,387) (637,092) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balances as of December 31, 2019 ​ 234,511 ​ 410,009 ​ 92,017 ​ 40,777 ​ 777,314 Balances as of December 31, 2020 ​ 204,321 ​ 453,674 ​ 89,551 ​ 67,765 ​ 815,311 Balances as of December 31, 2021 ​ 236,190 ​ 462,382 ​ 82,438 ​ 80,734 ​ 861,744 ​ b) Leasing payable: ​ Leasing payments are presented in the Statement of Cash Flow. ​ The liabilities presented in the Balance Sheet are adjusted to present value, based on risk-free interest rates observed in each country where the Company has operations, adjusted by the Company's credit spread, where on December 31, 2021 the discount rates were between 3.5% p.a. to 16.3% p.a. (3.7% p.a. to 10.8% p.a. in December 31, 2020), varying according to the country and duration of the lease. ​ The payment schedules of leasing are as follows: ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ 2020 2021 ​ — ​ 231,703 2022 ​ 275,086 ​ 193,314 2023 211,576 ​ 140,019 2024 127,718 ​ 90,812 2025 88,682 ​ 65,561 2026 on 215,303 ​ 135,065 ​ 918,365 ​ 856,474 ​ ​ ​ ​ ​ Leasing payable ​ ​ ​ ​ Current ​ 275,086 ​ 231,703 Non-current ​ 643,279 ​ 624,771 ​ ​ ​ ​ ​ Financial expense for the years ended on December 31, 2021 and 2020 ​ 68,789 ​ 61,727 ​

TRADE ACCOUNTS PAYABLE

TRADE ACCOUNTS PAYABLE	12 Months Ended
	Dec. 31, 2021
TRADE ACCOUNTS PAYABLE
TRADE ACCOUNTS PAYABLE	NOTE 14 – TRADE ACCOUNTS PAYABLE ​ ​ ​ ​ ​ ​ ​ 2021 2020 Trade accounts payable - domestic market 5,230,270 3,941,924 Trade accounts payable - debtor risk 807,915 726,045 Trade accounts payable - intercompany 47,597 8,958 Trade accounts payable - imports 1,931,358 761,026 ​ 8,017,140 5,437,953 ​ The Company has contracts with financial institutions in order to allow its suppliers to receive in advance their receivables through an operation called "Trade accounts payable - debtor risk". In this operation, the suppliers transfer the right to receive their receivables to a financial institution, which in turn, becomes the holder of the rights to the suppliers' receivables. The Company constantly monitors the composition of the portfolio and the conditions established with its suppliers, which have not resulted in significant changes in relation to what had been practiced historically.

SHORT-TERM DEBT AND LONG-TERM D

SHORT-TERM DEBT AND LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2021
SHORT-TERM DEBT AND LONG-TERM DEBT
SHORT-TERM DEBT AND LONG-TERM DEBT	NOTE 15 – SHORT-TERM DEBT AND LONG-TERM DEBT Loans and financing are as follows: ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 Working capital ​ 480,905 1,178,557 Financing of property, plant and equipment and others ​ 102,232 333,797 Ten/Thirty Year Bonds ​ 10,526,649 13,100,580 Total Loans and Financing 11,109,786 14,612,934 Current 234,537 1,424,043 Non-current 10,875,249 13,188,891 ​ ​ ​ ​ ​ ​ Principal amount of loans and Financing 10,952,983 14,413,188 Interest accrued of loans and Financing 156,803 199,746 Total 11,109,786 14,612,934 (*) Weighted average effective interest costs on December 31, 2021, which represents total of 5.76%. Loans and financing denominated in Brazilian reais are indexed to fixed rates or CDI (Interbank Deposit Certificate). Summary of loans and financing by currency: ​ ​ ​ ​ ​ ​ ​ 2021 2020 Brazilian Real (BRL) 461,187 1,245,988 U.S. Dollar (USD) 10,535,532 13,366,946 Other currencies 113,067 — ​ 11,109,786 14,612,934 ​ The amortization schedules of long-term loans and financing are as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 2022 — 5,210 2023 1,115,211 2,108,324 2024 878,044 1,813,225 2025 405,788 682,422 2026 on 8,476,206 8,579,710 ​ 10,875,249 13,188,891 ​ a) Credit Lines In October 2019, the Company completed the renewal of the Global Credit Line in the total amount of US$ 800 million (equivalent to R$4,464 million as of December 31, 2021). The transaction aims to provide liquidity to subsidiaries in North America and Latin America, including Brazil. The companies Gerdau S.A., Gerdau Açominas S.A. and Gerdau Aços Longos S.A. provide guarantee for this transaction, which matures in October 2024. As of December 31, 2021, the outstanding balance of this credit facility was US$ 85 million (equivalent to R$ 474 million as of December 31, 2021). b) Significant funding and settlements of financing in 2021 During the 4 th quarter of 2021, the Company repurchased Bonds, maturing in 2023, 2024 and 2027, in the total principal amount of US$ 395.8 million (equivalent to R$ 2,208 million). Additionally, the subsidiary Gerdau Açominas S.A. effected the early settlement of two bilateral loans in the total amount of R$ 775 million with the banks Santander and Bank of America.

DEBENTURES

DEBENTURES	12 Months Ended
	Dec. 31, 2021
DEBENTURES.
DEBENTURES	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ General ​ Quantity as of December 31, 2021 ​ ​ ​ ​ ​ ​ Issuance Meeting Issued Held in treasury Maturity 2021 2020 14th ​ August 26, 2014 ​ 20,000 ​ 20,000 ​ August 30, 2024 ​ — ​ — 15th ​ November 09, 2018 ​ 1,500,000 ​ — ​ November 21, 2022 ​ 1,513,958 ​ 1,500,985 16th - A ​ April 25, 2019 ​ 600,000 ​ — ​ May 6, 2023 ​ 607,031 ​ 600,759 16th - B ​ April 25, 2019 ​ 800,000 ​ — ​ May 6, 2026 ​ 808,918 ​ 800,673 Total Consolidated 2,929,907 2,902,417 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,531,956 ​ 7,463 Non-current 1,397,951 2,894,954 ​ The amortization schedules of long-term are as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 2022 — 1,497,760 2023 ​ 599,390 ​ 598,960 2026 ​ 798,561 ​ 798,234 ​ 1,397,951 2,894,954 ​ The debentures are denominated in Brazilian Reais, nonconvertible, and pay variable interest as a percentage of the CDI – Interbank Deposit Certificate. The average interest rate was 4.62% for the year ended on December 31, 2021 (2.90% for the year ended on December 31, 2020).

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2021
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS	NOTE 17 — FINANCIAL INSTRUMENTS a) General considerations - The Company uses derivative and non-derivative instruments as hedges for certain transactions and applies the hedge accounting methodology for some of these transactions. These operations are intended to protect the Company against changes in the exchange rates of loans denominated in foreign currency and fluctuations in interest rates. These transactions are carried out considering direct active or passive exposures, without leverage. ​ b) Fair Value — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ 2020 ​ Book Fair Book Fair ​ ​ value ​ value ​ value ​ value Assets Short-term investments 2,626,212 2,626,212 3,041,143 ​ 3,041,143 Related parties 2,678 2,678 134,354 ​ 134,354 Fair value of derivatives 3,246 3,246 — ​ — Other current assets 679,193 679,193 591,523 ​ 591,523 Other non-current assets 571,637 571,637 590,864 ​ 590,864 Liabilities ​ ​ ​ ​ ​ Loans and Financing 11,109,786 12,630,940 14,612,934 ​ 17,014,948 Debentures 2,929,907 2,911,424 2,902,417 ​ 2,775,619 Related parties ​ 24,648 ​ 24,648 ​ 22,855 ​ 22,855 Fair value of derivatives — — 971 ​ 971 Obligations with FIDC (current liabilities) 45,497 45,497 944,513 ​ 944,513 Other current liabilities 1,090,396 1,090,396 797,082 ​ 797,082 Obligations with FIDC (non-current liabilities) ​ — ​ — ​ 42,893 ​ 42,893 Other non-current liabilities 421,873 421,873 514,886 ​ 514,886 ​ The fair values of Loans and Financing and Debentures are based on market premises, which may take into consideration discounted cash flows using equivalent market rates and credit rating. All other financial instruments, which are recognized in the Consolidated Financial Statements at their carrying amount, are substantially like those that would be obtained if they were traded in the market. However, because there is no active market for these instruments, differences could exist if they were settled in advance. The fair value hierarchy of the financial instruments above are presented in Note 17.g. c) Risk factors that could affect the Company’s and its subsidiaries’ businesses: Price risk of commodities: Interest rate risk: Exchange rate risk: its liabilities denominated in foreign currency. Since the management of these exposures occurs at each operation level, if there is a mismatch between assets and liabilities denominated in foreign currency, the Company may employ derivative financial instruments in order to mitigate the effect of exchange rate fluctuations. Credit risk: this risk arises from the possibility of the company not receiving amounts arising from sales to customers or investments made with financial institutions. In order to minimize this risk, the company adopt the procedure of analyzing in details of the financial position of their customers, establishing a credit limit and constantly monitoring their balances. Regarding short-term investments, the Company invests solely in financial institutions with low credit risk, as assessed by rating agencies. In addition, each financial institution has a maximum limit for investment, determined by the Company’s Credit Committee. Capital management risk ​ ​ ​ ​ Net debt/EBITDA From 1.0 to 1.5 times Gross debt limit ​ R$ 12 billion Average maturity ​ more than 6 years ​ These key indicators are used to monitor objectives described above and may not necessarily be used as indicators for other purposes, such as impairment tests. Liquidity risk: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 Contractual obligations Total Less than 1 year 1-3 years 4-5 years More than 5 years Trade accounts payable 8,017,140 ​ 8,017,140 ​ — ​ — ​ — Loans and financing 17,885,671 ​ 851,225 ​ 2,227,608 ​ 2,308,361 ​ 12,498,477 Debentures 3,492,689 ​ 1,802,373 ​ 780,537 ​ 111,218 ​ 798,561 Related parties ​ 24,648 ​ — ​ — ​ — ​ 24,648 Obligations with FIDC 45,497 ​ 45,497 ​ — ​ — ​ — Other current liabilities 1,090,396 1,090,396 — — — Other non-current liabilities 421,873 ​ — ​ 35,406 ​ — ​ 386,467 ​ 30,977,914 ​ 11,806,631 ​ 3,043,551 ​ 2,419,579 ​ 13,708,153 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 Contractual obligations Total Less than 1 year 1-3 years 4-5 years More than 5 years Trade accounts payable 5,437,953 ​ 5,437,953 ​ — ​ — ​ — Loans and financing 21,962,204 ​ 2,131,402 ​ 3,465,577 ​ 3,531,312 ​ 12,833,913 Debentures 3,077,960 ​ 66,145 ​ 2,174,184 ​ 32,604 ​ 805,027 Related parties ​ 22,855 ​ — ​ — ​ — ​ 22,855 Obligations with FIDC 987,406 ​ 944,513 ​ 42,893 ​ — ​ — Other current liabilities 797,082 797,082 — — — Other non-current liabilities 514,886 ​ — ​ 41,805 ​ — ​ 473,081 ​ 32,800,346 ​ 9,377,095 ​ 5,724,459 ​ 3,563,916 ​ 14,134,876 ​ Sensitivity analysis: The Company performed a sensitivity analysis, which can be summarized as follows: Impacts on Statements of Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assumptions Percentage of change 2021 2020 Foreign currency sensitivity analysis 5% 19,036 15,057 Interest rate sensitivity analysis 10 bps 55,964 85,147 Sensitivity analysis of changes in prices of products sold 1% 783,451 438,147 Sensitivity analysis of changes in raw material and commodity prices 1% 437,210 269,454 Currency forward contracts ​ 5% ​ — ​ 3,703 Commodity contracts ​ 5% ​ 4,892 ​ — ​ Foreign currency sensitivity analysis: As of December 31, 2021, the Company is mainly exposed to variations between the Real and the Dollar. The sensitivity analysis carried out by the Company considers the effects of a 5% increase or reduction between the Real and the Dollar in its non-hedged debt. In this analysis, if the Real appreciates against the Dollar, this would represent a gain of R$ 19,036 after the effects arising from the changes in the net investment hedge described in Note 17.f - (R$ 15,047 as of December 31, 2020, respectively). If the Real depreciates against the Dollar this would represent an expense of the same value. Due to the net investment hedge, the variations are minimized when the exchange variation account and income tax are analyzed. The net amounts of trade accounts receivable and trade accounts payable denominated in foreign currency do not represent any significant risk in the case of any fluctuation of exchange rates. Interest rate sensitivity analysis: Sensitivity analysis of changes in sales price of products and price of raw materials and other inputs used in production: Sensitivity analysis of currency forward contracts: Sensitivity analysis of commodity contracts: same amount. Coal forward contracts were intended to cover liability positions and the mark to market effects of these contracts were recorded in the Consolidated Statement of Income. The commodity forward contracts to which the Company is exposed are presented in Note 17.e. d) Financial Instruments per Category Summary of the financial instruments per category: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial asset at fair ​ ​ 2021 ​ Financial asset at ​ value through proft or ​ ​ Assets amortized cost loss Total Short-term investments — 2,626,212 ​ 2,626,212 Fair value of derivatives ​ 3,246 ​ — ​ ​ 3,246 Related parties 2,678 — ​ 2,678 Other current assets 679,193 — ​ 679,193 Other non-current assets 479,971 91,666 ​ 571,637 Total 1,165,088 2,717,878 ​ 3,882,966 Financial income (expenses) 1,226,743 210,988 ​ 1,437,731 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liability at fair ​ ​ ​ ​ ​ ​ value through profit or ​ Financial liability at ​ ​ Liabilities loss amortized cost Total Loans and financing — ​ 11,109,786 ​ 11,109,786 Debentures — ​ 2,929,907 ​ 2,929,907 Related parties — ​ 24,648 ​ 24,648 Obligations with FIDC (current liabilities) ​ — ​ 45,497 ​ 45,497 Other current liabilities — ​ 1,090,396 ​ 1,090,396 Other non-current liabilities ​ — ​ 421,873 ​ 421,873 Total — ​ 15,622,107 ​ 15,622,107 Financial income (expenses) (10,421) ​ (2,177,764) ​ (2,188,185) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial asset at fair ​ ​ ​ 2020 ​ Financial asset at ​ value through proft or ​ ​ ​ Assets ​ amortized cost ​ loss ​ Total Short-term investments — 3,041,143 ​ 3,041,143 Related parties 134,354 — ​ 134,354 Other current assets 591,523 — ​ 591,523 Other non-current assets 530,864 60,000 ​ 590,864 Total 1,256,741 3,101,143 ​ 4,357,884 Financial income (expenses) 487,631 109,396 ​ 597,027 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liability at fair ​ ​ ​ ​ ​ ​ value through profit or ​ Financial liability at ​ ​ Liabilities loss amortized cost Total Loans and financing — ​ 14,612,934 ​ 14,612,934 Debentures — ​ 2,902,417 ​ 2,902,417 Related parties ​ — ​ 22,855 ​ 22,855 Obligations with FIDC (current liabilities) — ​ 944,513 ​ 944,513 Other current liabilities — ​ 797,082 ​ 797,082 Obligations with FIDC (non-current liabilities) ​ — ​ 42,893 ​ 42,893 Other non-current liabilities — ​ 514,886 ​ 514,886 Fair value of derivatives 971 ​ — ​ 971 Total 971 ​ 19,837,580 ​ 19,838,551 Financial income (expenses) (1,632) ​ (2,294,102) ​ (2,295,734) ​ e) Operations with derivative financial instruments Risk management objectives and strategies: The objective of derivative transactions is related to mitigating market risks as stated in our policies and guidelines. The monitoring of the effects of these transactions is performed monthly by the Financial Risk Management Committee, which validates the mark to market of these transactions. All derivative financial instruments are recognized at fair value in the Consolidated Financial Statements of the Company. Policy for use of derivatives: Policy for determining fair value: Derivative transactions may include: interest rate and/or currency swaps, currency futures contracts and currency options contracts. Swap Contracts: The Company has contracted Pre x DI swap operation, through which it receives a fixed interest rate and pays a floating interest rate, both in local currency. The counterparties to these operations are always highly rated financial institutions with low credit risk. Currency forward contracts: The derivatives instruments can be summarized and categorized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notional value ​ Amount receivable ​ Amount payable Contracts ​ Position ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ 2021 ​ 2020 Swap of interest rate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Maturity in 2022 ​ buyed in US$ ​ US$ 5.3 milion ​ US$ 9.9 milion ​ 3,246 ​ — ​ — ​ (971) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fair value of financial instruments ​ ​ ​ ​ ​ ​ ​ 3,246 ​ — ​ — ​ (971) ​ ​ ​ ​ ​ ​ Fair value of derivatives 2021 2020 Current assets 3,246 — ​ ​ 3,246 ​ — Fair value of derivatives ​ ​ ​ ​ Current liabilities ​ — ​ 971 ​ — 971 ​ ​ ​ ​ ​ ​ ​ 2021 2020 Net Income Gains on financial instruments 28,349 858 Losses on financial instruments (10,421) (1,632) ​ 17,928 (774) Other comprehensive income Gains (Losses) on financial instruments 1,907 (1,972) ​ 1,907 (1,972) ​ f) Net investment hedge The Company designated as hedge of part of its net investments in subsidiaries abroad the operations of Ten/Thirty Years Bonds. As a consequence, the effect of exchange rate changes on debts in the amount of US$ 1.4 billion (designated as hedges) is recognized in the Statement of Comprehensive Income. The Company demonstrated effectiveness of the hedge as of its designation dates and demonstrated the high effectiveness of the hedge from the contracting of each debt for the acquisition of these companies abroad, whose effects were measured and recognized directly in the Statement of Comprehensive Income as an unrealized loss, net of taxes, in the amount R$ 695,102 and R$2,504,914 as of December 31, 2021 and December 31,2020, respectively. The objective of the hedge is to protect, during the existence of the debt, the amount of part of the Company’s investment in the subsidiaries abroad mentioned above against positive and negative changes in the exchange rate. This objective is consistent with the Company’s risk management strategy. Prospective and retrospective tests demonstrated the effectiveness of these instruments. g) Measurement of fair value: IFRS defines fair value as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. The standard also establishes a three-level hierarchy for the fair value, which prioritizes information when measuring the fair value by the company, to maximize the use of observable information and minimize the use of non-observable information. This IFRS describes the three levels of information to be used to measure fair value: Level 1 - quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2 - Inputs other than quoted prices included in Level 1 available, where (unadjusted) quoted prices are for similar assets and liabilities in non-active markets, or other data that is available or may be corroborated by market data for substantially the full term of the asset or liability. Level 3 - Inputs for the asset or liability that are not based on observable market data, because market activity is insignificant or does not exist. As of December 31, 2021, the Company had some assets which the fair value measurement is required on a recurring basis. These assets include investments in private securities and derivative instruments. Financial assets and liabilities of the Company, measured at fair value on a recurring basis and subject to disclosure requirements of IFRS 7 as of December 31, 2021 and December 31, 2020, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at Reporting Date Using ​ ​ ​ ​ ​ ​ Quoted Prices in Non-Active ​ ​ ​ ​ ​ ​ Markets for Similar Assets ​ ​ Balance per financial statements ​ (Level 2) ​ 2021 2020 2021 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current assets Short-term investments 2,626,212 3,041,143 2,626,212 3,041,143 Fair value of derivatives 3,246 — 3,246 — Other current assets 679,193 591,523 679,193 591,523 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets Related parties 2,678 134,354 2,678 134,354 Other non-current assets 571,637 590,864 571,637 590,864 ​ 3,882,966 4,357,884 3,882,966 4,357,884 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities Short-term debt 234,537 1,424,043 234,537 1,424,043 Debentures ​ 1,531,956 ​ 7,463 ​ 1,531,956 ​ 7,463 Fair value of derivatives — 971 — 971 Obligations with FIDC ​ 45,497 ​ 944,513 ​ 45,497 ​ 944,513 Other current liabilities 1,090,396 797,082 1,090,396 797,082 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current liabilities Long-term debt 10,875,249 13,188,891 10,875,249 13,188,891 Debentures 1,397,951 2,894,954 1,397,951 2,894,954 Related parties ​ 24,648 ​ 22,855 ​ 24,648 ​ 22,855 Obligations with FIDC — 42,893 — 42,893 Other non-current liabilities 421,873 514,886 421,873 514,886 ​ 15,622,107 19,838,551 15,622,107 19,838,551 ​ h) Changes in liabilities from Cash flow from financing activities: ​ The Company has summarized below the changes in the liabilities of cash flow from financing activities, from its Statement of Cash Flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash transactions ​ Non cash transactions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense on ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ loans and Interest on ​ ​ ​ ​ ​ ​ Balances as of ​ Proceeds/(Repayment) ​ Interest paid on ​ loans with related ​ Exchange variation ​ Balances as of ​ ​ January 01, 2019 ​ from financing activities ​ loans and financing ​ parties ​ and others ​ December 31, 2019 Related parties, net ​ (26,589) ​ (64,089) ​ — ​ (4,767) ​ — ​ (95,445) Leasing payable ​ 836,368 ​ (161,824) ​ (83,620) ​ 83,620 ​ 129,725 ​ 804,269 Debt, Debentures and Losses/Gains on financial instruments, net - Derivative instruments ​ 14,878,542 ​ 700,490 ​ (945,027) ​ 938,120 ​ 474,896 ​ 16,047,021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash transactions ​ Non cash transactions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense on ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ loans and Interest on ​ ​ ​ ​ ​ ​ Balances as of ​ Proceeds/(Repayment) ​ Interest paid on ​ loans with related ​ Exchange variation ​ Balances as of ​ ​ December 31, 2019 ​ from financing activities ​ loans and financing ​ parties ​ and others ​ December 31, 2020 Related parties, net ​ (95,445) ​ (7,777) ​ — ​ (8,277) ​ — ​ (111,499) Leasing payable ​ 804,269 ​ (247,914) ​ (61,727) ​ 61,727 ​ 300,119 ​ 856,474 Debt, Debentures and Losses/Gains on financial instruments, net - Derivative instruments ​ 16,047,021 ​ (1,963,283) ​ (1,079,981) ​ 1,022,460 ​ 3,490,105 ​ 17,516,322 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash transactions ​ Non cash transactions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense on ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ loans and Interest on ​ ​ ​ ​ ​ ​ Balances as of ​ Proceeds/(Repayment) ​ Interest paid on ​ loans with related ​ Exchange variation ​ Balances as of ​ ​ December 31, 2020 ​ from financing activities ​ loans and financing ​ parties ​ and others ​ December 31, 2021 Related parties, net ​ (111,499) ​ 139,556 ​ — ​ (6,089) ​ 2 ​ 21,970 Leasing payable ​ 856,474 ​ (275,944) ​ (68,699) ​ 68,699 ​ 337,835 ​ 918,365 Debt, Debentures and Losses/Gains on financial instruments, net - Derivative instruments ​ 17,516,322 ​ (4,506,918) ​ (1,100,826) ​ 1,059,841 ​ 1,068,028 ​ 14,036,447 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

TAXES PAYABLE

TAXES PAYABLE	12 Months Ended
	Dec. 31, 2021
TAXES PAYABLE
TAXES PAYABLE	NOTE 18 — TAXES PAYABLE ​ ​ ​ ​ ​ ​ ​ 2021 2020 Payroll charges 136,428 100,301 ICMS (state VAT) 92,320 99,430 COFINS (tax on revenue) 26,139 51,444 IPI (federal VAT) 41,474 38,153 IVA (value-added tax) and others 251,812 310,761 ​ 548,173 600,089 ​

TAX, CIVIL AND LABOR CLAIMS AND

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS	12 Months Ended
	Dec. 31, 2021
TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS
TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS	NOTE 19 — TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS The Company and its subsidiaries are party in judicial and administrative proceedings involving labor, civil and tax matters. Based on the opinion of its legal advisors, Management believes that the provisions recorded for these judicial and administrative proceedings is sufficient to cover probable and reasonably estimable losses from unfavorable court decisions and that the final decisions will not have significant effects on the financial position, operational results and liquidity of the Company and its subsidiaries. For claims whose expected loss is considered probable, the provisions have been recorded considering the judgment of the Management of the Company with the assistance of its legal advisors and the provisions are considered enough to cover expected probable losses. The balances of provisions are as follows: I) Provisions ​ ​ ​ ​ ​ ​ ​ 2021 2020 a) Tax provisions 1,270,473 ​ 706,104 b) Labor provisions 435,803 ​ 428,821 c) Civil provisions 34,750 ​ 37,586 ​ 1,741,026 ​ 1,172,511 ​ a) Tax Provisions Tax provisions refer mainly to discussions related to ICMS, IPI, tax uncertainties related to income tax and social contribution, social security contributions, offsetting of PIS and COFINS credits and incidence of PIS and COFINS on other revenues. b) Labor Provisions The Company is party to a group of individual and collective labor and/or administrative lawsuits involving various labor amounts and the provision arises from unfavorable decisions and/or the probability of loss in the ordinary course of proceedings with the expectation of outflow of financial resources by the Company. c) Civil Provisions The Company is party to a group of civil, arbitration and/or administrative lawsuits involving various claims and the provision arises from unfavorable decisions and/or probable losses in the ordinary course of proceedings with the expectation of outflow of financial resources for the Company. ​ The changes in the tax, labor and civil provisions are shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Balance at the beginning of the year 1,172,511 809,299 ​ 770,305 (+) Additions 801,412 559,513 ​ 249,868 (+) Interests 42,435 104,473 ​ 70,788 (-) Reversal of accrued amounts (276,251) (304,678) ​ (282,239) (+) Foreign exchange effect on provisions in foreign currency 919 3,904 ​ 577 Balance at the end of the year 1,741,026 1,172,511 ​ 809,299 ​ II) Contingent liabilities for which provisions were not recorded Considering the opinion of legal advisors and management’s assessment, contingencies listed below have the probability of loss considered as possible (but not likely) and due to this classification, accruals have not been made. a) Tax contingencies a.1) a.2) a.3) lawsuits of the subsidiary Gerdau Aços Longos S.A. where, currently, four lawsuits are at the first instance of the Administrative Council for Tax Appeals (CARF) awaiting the judgment of the Voluntary Appeals filed by the Company, and, finally, another 3 lawsuits that are in the Superior Chamber of Tax Appeals (CSRF) of the CARF, for judgment of Special Appeals filed by the Company; and (ii) R$ 377,918 correspond to two lawsuits of Gerdau S.A., which are in the Superior Chamber of Tax Appeals (CSRF) of CARF, for judgment of Special Resources and Appeal filed by the Company. a.4) corresponds to a lawsuit in which the Company impugnation was rejected by the Federal Revenue Judgment Office (DRJ) and filed a Voluntary Appeal with the Administrative Tax Appeals Council (CARF), which is pending of judgment; (iii) R$ 79,626 correspond to a lawsuit in which the Company had its challenge partially provided and filed a Voluntary Appeal with the Administrative Council for Tax Appeals (CARF), which is pending of judgment; and (iv) R$ 149,996 correspond to a Notice of Infraction received by the Company on December 2, 2019, against which it presented an Objection on December 27, 2019, deemed partially valid by the Federal Revenue Judgment Office (DRJ), pending judgment by the Council Administrative Tax Appeals (CARF) the Voluntary Appeal filed. a.5) th a.6) th nd nd successor of Gerdau Aços Especiais S.A.), which is at the Superior Chamber of Tax Appeals (CSRF) of CARF for judgment of the Special Appeal filed by the Company; (ix) R$ 575,631 corresponds to a lawsuit filed by the subsidiary Gerdau Aços Longos S.A., which is pending in the first instance of the Administrative Council for Tax Appeals (CARF) awaiting judgment of the Voluntary Appeal filed by the Company; (x) R$ 502,804 pending before the first instance of the Administrative Council for Tax Appeals (CARF), which awaits judgment of the Voluntary Appeal filed by the Company; (xi) R$ 145,141 corresponds to a lawsuit of the subsidiary Gerdau Aços Longos S.A., separated from the process mentioned in item "vii" above, and which is currently in the judicial collection phase, with the appeal of motions for clarification pending of judgment against the sentence that dismissed the Embargoes on Tax Enforcement filed by the Company; and (xii) R$ 402,857 corresponds to a lawsuit of the subsidiary Gerdau Aços Longos S.A., separated from the lawsuit mentioned in item “vii” above, and that it is currently in the judicial collection stage, and the Embargoes on Tax Enforcement filed by the Company are pending of judgment. The Company's tax advisors confirm that the procedures adopted by the Company regarding the tax treatment of profits earned abroad and the goodwill amortization, which led to the aforementioned lawsuits, have complied with the strict legality and, therefore, these lawsuits are classified as possible loss (but not likely). Brazilian federal authorities and the judiciary branch are investigating certain issues relating to CARF proceedings, as well as specific political contributions made by the Company, with the purpose of determining whether the Company engaged in any illegal conduct. The Company previously disclosed that, in addition to its interactions with Brazilian authorities, the Company was providing information requested by the U.S. Securities and Exchange Commission (“SEC”). The Company has since been informed by the SEC’s staff that it has closed its inquiry and therefore is not seeking any further information from the Company regarding these matters. The Company believes it is not possible at this time to predict the term or outcome of the proceedings in Brazil, and that there currently is not enough information to determine whether a provision for losses is required or any additional disclosures. b) Civil contingencies b.1) Two lawsuits challenge the investigation conducted by the Competition Defense System and its merits judgment, whose grounds are procedural irregularities, especially the production of evidence, based on an economic study, to prove the inexistence of a cartel. The Court, upon offer of bank guarantee letter, granted the suspension of the effects of CADE’s decision. Both actions were dismissed, and their respective appeals were also rejected by the Federal Regional Court of the 1 st Against both decisions, appeals were lodged with the Superior Court of Justice and the Federal Supreme Court, after admissibility judgment, the appeal to the Superior Court of Justice was admitted and well as substitution of the guarantee offered by insurance guarantee in a decision of October 8, 2019. In the same order in which the Vice president Judge gave suspensive effect to the Special Appeal, in order to change the guarantee, the Extraordinary Appeal was dismissed, on the grounds of violation of res judicata with recognized general repercussion. Against this decision, the Company filed an Internal Appeal for the TRF1 Plenary, which was dismissed. Currently, the Company awaits judgment of the Special Appeal by the Superior Court of Justice. Regardless of the result of its resources, the Company will continue to seek all legal remedies to defend its rights. The Company denies having been engaged in any type of anti-competitive conduct and it is certain that it has not practiced the conduct attributed to it, understanding shared by its legal consultants, who consider it is possible to reverse its condemnation. b.2) c) Labor Contingencies The Company and its subsidiaries are parties to other labor claims that together have an amount of approximately R$ 452,847. For these claims, no accounting provision was made, since these were considered as possible losses, based on the opinion of management with inputs of its legal counsel. III) Judicial deposits The Company has judicial deposits related to tax, labor and civil lawsuits as listed below: ​ ​ ​ ​ ​ ​ ​ 2021 2020 Tax 1,449,699 1,597,995 Labor 73,709 95,234 Civil 135,971 132,562 ​ 1,659,379 1,825,791 ​ The balance of tax judicial deposits as of December 31, 2021 includes the amount of R$ 1,354,340, which corresponds to judicial deposits made up to June 2017, referring to the same discussion on the inclusion of the ICMS in the tax base of PIS and COFINS and awaits termination of the lawsuits before the Brazilian courts in order to be returned to the Company. The Company and its subsidiaries made judicial deposits and accounting provisions, which in turn were updated in accordance with the SELIC rate, which were referred to the unpaid amounts of PIS and COFINS since 2009, because the collection of which was fully suspended, due to the mentioned judicial deposits. On March 15, 2017, the Brazilian Federal Supreme Court (STF — Supremo Tribunal Federal) ruled on a claim related to this matter, and by 6 votes to 4, concluded: “The ICMS does not comprise the tax base for PIS and COFINS assessment purposes”. The STF decision, in principle, affects all the nine judicial proceedings, due to its general repercussion. Seven of these lawsuits already have a final favorable decision, and the gain was recognized when the decision was final and unappealable, considering for the purposes of calculation the exclusion of the ICMS informed in the invoices, as recognized in the final and unappealable decisions, and is preparing the documents to carry out the qualification of its credit and be able to start the compensation procedures and/or have already qualified before the Federal Revenue Service of Brazil. It is worth noting that the Company still has two actions for repetition of undue payments, which are awaiting the respective final and unappealable decision. The first of these became final on July 19, 2019, assuring to the Company: i) the right to recover undue payments before the proposed action, in the amount of R$ 122 million (R$ 79 million net of related expenses), and ii) the right to withdraw the judicial deposits made during the course of this action, which was made on September 16, 2019, in the amount of R$ 179 million. The second became final on December 18, 2019, assuring to the Company: i) the right to recover undue payments made before the filing of the lawsuit, as well as during its processing, in the amount of R$ 280 million (R$ 185 million net of related expenses), and ii) the right to withdraw judicial deposits made during the course of this action, which was made on May 27, 2020, in the amount of R$ 189 million. The third became final on June 29, 2020, assuring to the Company: i) the right to recover undue payments made before the filing of the lawsuit, as well as during its processing, in the amount of R$ 147 million (R$ 135 million net of related expenses), and ii) the right to withdraw judicial deposits made during the course of this action in the amount of R$ 198 million. The fourth became final on November 18, 2020, assuring to the Company: i) the right to recover undue payments made before the filing of the lawsuit, as well as during its processing, in the amount of R$ 940 million (R$ 902 million, net of related expenses), and ii) the right to withdraw judicial deposits made during the course of this action in the amount of R$ 3 million. The fifth became final on February 24, 2021, assuring to the Company the right to recover undue payments made before the filing of the lawsuit (undue in respect of period of January/2009 to April/2009), in the amount of R$ 73.5 million (R$ 45.8 million, net of related expenses). The sixth became final on March 25, 2021, assuring to the Company the right to recover undue payments made before the filing of the lawsuit (undue in respect of period of January/2009 to April/2009), in the amount of R$ 5.7 million (R$ 3.6 million, net of related expenses). The seventh became final on July 14, 2021, assuring to the Company the right to recover undue payments made before the filing of the lawsuit (undue in respect of period of December/2006 to December/2010), in the amount of R$ 237 million (R$ 230 million, net of related expenses). The eighth and ninth actions for repetition of undue payment are still awaiting the respective final and unappealable decisions. In these lawsuits, the Company claims the recognition of R$ 683 million (R$ 643 million, net of related expenses) referring to credits prior to the filing of the lawsuits On May 13, 2021, the Federal Supreme Court ruled the Embargoes for Declaration that the National Treasury Attorney's Office had opposed, alleging that the Supreme Court's decision was silent on certain points, and requesting the modulation of the effects of the decision. In that judgment, the STF accepted, in part, the Embargoes for Declaration, to modulate the effects of the judgment whose production took place after March 15, 2017 (date on which RE No. 574.706 was judged), except for lawsuits or administrative proceedings filed up to that date, and rejected the embargoes regarding the allegation of omission, obscurity or contradiction and, in the point related to the ICMS excluded from the calculation basis of the PIS-COFINS contributions, it signed the understanding that it is the ICMS informed in the invoice. After this judgment, the concept of virtually certain for the purposes of the entry of economic benefits and recognition of the asset and the corresponding gain started to be demonstrated. Thus, even though there was no final and unappealable decision on two lawsuits that were pending of judgment, the Company recognized in the 2nd quarter of 2021, with sufficient reliability, the amounts of tax credits to which it is entitled, in the amount of R$ 683 million (R$ 643 million, net of related expenses) referring to credits prior to the filing of the lawsuits. The Company recognized in the 3 rd The amounts recognized in the Company's results related to the recovery of credits arising from the ICMS in the tax base of PIS and COFINS lawsuits (net of related expenses) was R$ 1.2 billion in 2021, of which, R$ 393.3 million in the Other Operating Income line and R$ 788.7 million in the Tax Credits Monetary Update line Due to the economic environment strongly impacted by the pandemic caused by Covid-19, as well as the fact that the procedural legislation expressly provides the equivalence of cash and guarantee insurance, the subsidiary Gerdau Aços Longos S.A. requested the replacement of the amounts deposited by it over the years regarding the Inclusion of ICMS in the tax base of PIS and COFINS for a guarantee insurance presented by the Company, in the amount of R$ 1.7 billion, which complies with all the requirements established by the PGFN (Attorney General of the National Treasury) and can be converted into income at any time, ensuring that the Public Treasury receives all the amounts that may eventually be due at the end of the process. In the lower court decision, therefore, there was a decision to release the funds deposited by the Company. The Public Treasury appealed to the Court and obtained a decision reversing the release of the amounts. The Company, then, filed a complaint to settle divergence between the decision handed down by Federal Judge Ferreira Neves, member of the 4 th nd Regarding the fine for bad faith litigation, applied due to the allegation of alleged attempt to mislead the Judiciary, the Company informs that it has always manifested itself in the file with procedural good faith and is confident that this will be clarified during the process. IV) Eletrobras Compulsory Loan — Centrais Elétricas Brasileiras S.A. (Eletrobras) The Compulsory Loan, instituted by the Brazilian government in order to expand and improve the energy sector of the country was charged and collected from industrial consumers with monthly consumption equal or greater than to 2000kwh through the “electricity bills” issued by the electric power distribution companies, was converted into credits to the taxpayers based on the annual value of these contributions made between 1977 and 1993. The legislation sets a maximum 20 years period to return the compulsory loan to the taxpayers, providing Eletrobras the possibility of anticipating this return through the conversion of those loans in shares of its own issuance. Prior to the conversion of the credits into shares, those credits were monetary corrected through an indexer and quantifier, called Standard Unit (SU). However, the compulsory loan was charged to the companies in their monthly electricity bills, consolidated during the year, and only indexed by the SU in January of the following year, resulting in a lack of monthly monetary correction during the years of collection, as well as interest. This procedure imputed to taxpayers’ considerable financial losses, particularly during the periods when the monthly inflation rates stood at high levels. In order to claim the appropriate interest and monetary correction subtracted by the methodology applied by Eletrobras, the Company (understood to be legally entities existing at the time and that later became part of Gerdau S.A.) filed lawsuits claiming credits resulting from differences on the monetary correction of principal, interest, default interest and other accessory amounts owed by Eletrobras due to the compulsory loans. The Company recognized in the 2020 result, the amount of R$ 436 million (net of expenses incurred for its realization), corresponding to four processes that evolved into its closing and liquidation phase. ​ The Company still has other lawsuits pending before the Judiciary, dealing with the subject, with final and unappealable decisions on the merits, favorable to the Company. Regarding one of these processes, involving Gerdau S.A. and its subsidiary Seiva SA – Florestas e Indústrias, on November 25, 2020 a decision was issued that ratified the expert report prepared by the court expert appointed by the Court, establishing the amount to be received in favor of the companies. This decision was maintained by the Court of Justice of the State of Rio de Janeiro in judgment on August 10, 2021, and on September 10, 2021 Eletrobras made the judicial deposit/payment of the amount of the sentence determined by the Judiciary Branch of the State of Rio January, duly increased by interests and loss charges. Thus, considering the current procedural stage, the Company concludes that said asset, until then treated as contingent, due to uncertainties as to the term, form and amount that would be effectively paid and currently defined, fulfilled the accounting characteristics related to the entry of economic benefits, pursuant to paragraph 35 of IAS 37, which implied the recognition by the Company, in 2021, of gain in the statement of income in the amount of R$ 1,391,280, net of fees and related expenses. The Company clarifies that on December 21, 2021 the entire amount was deposited in the Company's account, after the presentation of a guarantee insurance. The Company reinforces that the decision that fixed the amount due in favor of Gerdau was maintained in all instances of the Judiciary Branch of the State of Rio de Janeiro, having been rejected the request for suspension by the Superior Court of Justice – STJ; and that it takes care of definitive execution, based on a final judicial enforcement order, no longer subject to deconstitution of any nature before the Judiciary, leaving only appeals and measures with remote possibilities of acceptance, in view of its only delaying nature. The other lawsuits pending before the Judiciary, dealing with this subject, with final and unappealable decisions on the merits, favorable to the Company, total approximately R$ 73 million. V) Other contingent assets The Company's management believes that the realization of certain contingent assets of a tax nature is probable. However, such assets were not recognized in the financial statements, due to the fact that they have not yet become final and/or that there are uncertainties regarding the term, form and amount that will be effectively realized, and it is not yet practicable to determine with certainty that the amount of the gain in the form of proceeds from these decisions has reached the level of virtually certain and that the Company has control over such assets, which implies that such gains are not recognized until such conditions are demonstrably present. The Company estimates that such contingent assets amount to approximately R$ 750 million as of December 31, 2021.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2021
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 20 — RELATED-PARTY TRANSACTIONS a) Intercompany loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Maturity 2021 2020 Assets ​ ​ Joint venture ​ ​ Gerdau Corsa SAPI de C.V. ​ ​ — 117,092 Others ​ ​ ​ ​ Fundação Gerdau December 31, 2022 ​ 2,678 17,262 ​ ​ ​ 2,678 134,354 Liabilities ​ ​ ​ ​ ​ ​ Joint venture ​ ​ ​ ​ ​ ​ Bradley Steel Processors Inc. ​ August 1, 2022 ​ (24,648) ​ (22,855) ​ ​ ​ ​ (24,648) ​ (22,855) ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Net financial income 6,089 8,277 4,767 ​ b) Operations with related parties During the years ended December 31, 2021, 2020 and 2019, the Company, through its subsidiaries, entered into commercial operations with some of its associate companies and joint ventures including sales of R$997,298 as of December 31, 2021 (R$887,945 and R$1,572,618 as of December 31, 2020 and 2019, respectively) and purchases in the amount of R$304,239 as of December 31, 2021 (R$208,948 and R$198,636 as of December 31, 2020 and 2019, respectively). The net amount totals R$693,058 as of December 31, 2021 (R$678,997 and R$1,373,982 as of December 31, 2020 and 2019, respectively). Additionally, the Company recorded income derived from rental agreement in the amount of R$ 670 as of December 31, 2021 (R$ 524 and R$ 554 as of December 31, 2020 and 2019, respectively). During the year ended on December 31, 2020, the Company and its subsidiaries carried out transactions with controlling shareholders referring to the sale of property in the amount of R$21,204 with receivement in six annual installments adjusted by the positive variation of the IPCA. The decision about the buyer was made through a competitive market process that considered several potential buyers to whom the asset was presented, under the coordination of an independent specialized company. The sale price was determined based on independent valuations and carried out by professionals specialized in valuing tangible assets. As a conclusion of this process, the best proposal was recommended under the terms of the independent appraisal and, as it is a related party, it was approved by the Board of Directors, observing the terms of the Company's Related Party Transactions Policy. During the year ended on December 31, 2019, the Company and its subsidiaries made transactions with controlling shareholders, directly or indirectly, mainly of guarantees provided by the controlling in guarantees of debentures, on which the Company paid a fee of 0.95 % p.a. on the amount guaranteed. The effect of these transactions was an expense of R$68 as of December 31, 2019. Guarantees granted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Original ​ ​ ​ ​ ​ ​ ​ ​ Related Party Relationship Object Amount Maturity 2021 2020 2019 Gerdau Corsa S.A.P.I. de C.V. ​ Joint-venture ​ Financing Agreements ​ 4,905,367 ​ Oct/24 ​ 2,157,290 ​ 2,242,865 ​ 1,784,868 Gerdau Summit Aços Fundidos e Forjados S.A. ​ Joint-venture ​ Financing Agreements ​ 130,164 ​ Aug/25 ​ — ​ 30,125 ​ 37,285 Gerdau Metaldom S.A. e Gerdau Corsa S.A.P.I. de C.V ​ Joint-venture ​ Financing Agreements ​ 274,560 ​ Feb/20 ​ — ​ — ​ 241,842 ​ c) Price and interest Loan agreements between Brazilian companies carry interest based on the CDI (Interbank Deposit Certificate) and Libor rate plus exchange variance, when applicable. Sales of products and purchases of inputs are made under terms and conditions agreed between the parties. d) Key Management compensation The expense recognized related to key management salaries, variable compensation and benefits was R$61,747 for the year ended on December 31, 2021 (R$33,773 and R$13,963 for the years ended on December 31, 2020 and 2019, respectively). Contributions to management’s defined contribution pension plans totaled R$1,932 for the year ended on December 31, 2021 (R$1,416 and R$1,687 for the years ended on December 31, 2020 and 2019, respectively). The cost of long-term incentive plans recognized in income and attributable to key management (members of Board of Directors and executive officers) totaled R$19,637 for the year ended on December 31, 2021 (R$19,328 and R$17,606 for the years ended on December 31, 2020 and 2019, respectively). The cost of social charges, related to the management of the Company, totaled R$ 23,266 for the year ended on December 31, 2021 (R$ 27,830 and R$15,247 for the years ended on December 31, 2020 and 2019, respectively). At the end of the year, quantity of Restricted and Performance Shares with the key management were: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Available at beginning of the year 6,456,248 6,717,872 ​ 6,375,547 Granted 709,990 ​ 733,218 ​ 1,083,116 Exercised (3,453,802) ​ (937,325) ​ (627,076) Cancelled ​ — ​ (64,112) ​ (38,553) Others ​ — ​ 6,595 ​ (75,162) Available at the end of the year 3,712,436 ​ 6,456,248 ​ 6,717,872 ​ Additional information on the long-term incentive plan are presented in Note 26. e) Other information from related parties The Company has contracted a convertible loan into equity interest with the company Brasil ao Cubo Construção modular Ltda., which is presented in the line of Other non-current assets, in the amount of R$ 91,666 on December 31, 2021. Contributions to the assistance entities Fundação Gerdau, Instituto Gerdau and Fundação Ouro Branco, classified as related parties, amounted R$35,595 (R$104,322 on December 31, 2020). The defined benefit pension plans and the post-employment health care benefit plan are related parties of the Company and the details of the balances and contributions are presented in Note 21.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Dec. 31, 2021
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS	NOTE 21 — EMPLOYEE BENEFITS Total assets and liabilities of all types of employee benefits granted by the Company and its subsidiaries as of December 31, 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 Plan assets - Defined contribution pension plan 4,942 ​ 39,196 Total assets 4,942 ​ 39,196 Actuarial liabilities - Defined benefit pension plan 1,083,719 ​ 1,441,592 Acturial liabilities - Post-employment health care benefit 318,181 ​ 362,944 Retirement and termination benefit liabilities 13,290 ​ 56,903 Total liabilities 1,415,190 ​ 1,861,439 Current 39 ​ 208 Non-current 1,415,151 ​ 1,861,231 ​ a) Post-employment defined benefit pension plan The Company’s Canadian and US subsidiaries sponsor defined benefit plans (Canadian Plan and American Plan), collectively referred to as the North American Plans, that cover substantially all their employees and provide supplemental benefits to employees during retirement. Additionally, the Company and its subsidiaries in Brazil sponsored a defined benefit pension plan (Brazilian plans), which are managed through Gerdau - Sociedade de Previdência Privada, a closed supplementary pension entity. In 2010, it was approved the settlement of a defined benefit plan, in which the participants had the rights for the benefit settled. All participants of those plans, which are now settled, were able to: (i) choose to adhere to a new defined contribution plan, when it was authorized to transfer the amount related to the individual mathematical reserve from the settled plan for the new plan and add amounts to this reserve through future contributions and sponsors, plus the resources profitability; or (ii) do not transfer the reserve and maintain the benefit settled in the defined benefit plan, adjusted by the INPC (National Index of Consumer Prices). The assumptions adopted for pension plans can have a significant effect on the amounts disclosed and recorded for these plans. Due to the migration process and the closing of the Brazilian pension plans in 2010, the Company is not calculating the potential effects of changes in discount rates and expected return rate on assets for these plans. The potential effects of changes to the North American Plans on the Consolidated Statement of Income are presented below: ​ ​ ​ ​ ​ ​ ​ 1% Increase 1% Decrease Discount rate (17,822) 10,392 ​ The accumulated amount recognized in other Comprehensive Income for employee benefits is R$ (920,478) as of December 31, 2021 (R$ (1,173,010) as of December 31, 2020). Defined Benefit Pension Plan The current expenses of the defined benefit pension plans are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Cost of current service 74,840 ​ 69,323 54,518 Interest expense 170,897 ​ 191,326 189,544 Return on plan assets (136,933) ​ (156,475) (163,148) Past service cost 7,093 ​ 3,967 2,302 Settlement (847) ​ (11,609) (4,712) Interest cost on unrecoverable surplus 4,371 ​ 7,413 16,247 Net pension cost 119,421 ​ 103,945 94,751 ​ The reconciliations of assets and liabilities of the plans are as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 Present value of defined benefit obligation (5,409,065) ​ (5,921,285) Fair value of plan assets 4,647,361 ​ 4,652,000 Asset ceiling restrictions on recognition of net funded assets (322,015) ​ (172,307) Net (1,083,719) ​ (1,441,592) Defined benefit obligation (1,083,719) ​ (1,441,592) ​ Changes in plan assets and actuarial liabilities were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Variation of the plan obligations ​ ​ ​ ​ ​ ​ Obligation at the begining of the year 5,921,285 4,601,965 4,391,251 Cost of service 74,840 ​ 69,323 54,518 Interest expense 170,897 ​ 191,326 189,544 Payments of the benefits (486,310) ​ (434,650) (309,817) Past service cost 7,093 ​ 3,967 2,302 Settlement (228,881) ​ (190,948) (498,493) Acturial remeasurements (457,421) ​ 467,106 546,911 Exchange Variance 407,562 ​ 1,213,196 225,749 Obligation at the end of the year 5,409,065 5,921,285 4,601,965 ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Variation of the plan assets ​ ​ ​ ​ ​ ​ Fair value of the plan assets at the begining of the year 4,652,000 3,656,891 3,568,934 Return of the plan assets 136,933 ​ 156,475 163,148 Contributions from sponsors 244,123 ​ 224,979 162,650 Settlement (228,034) ​ (179,339) (493,781) Payments of benefits (486,310) ​ (434,650) (309,817) Remeasurement 25,498 ​ 334,675 386,767 Exchange Variance 303,151 ​ 892,969 178,990 Fair value of plan assets at the end of the year 4,647,361 4,652,000 3,656,891 ​ The fair value of plan assets includes shares of the Company in the amount of R$17,785 as of December 31, 2021 (R$8,745 as of December 31, 2020). Amounts recognized as actuarial gains and losses in the Statement of Comprehensive Income are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Remeasurements ​ (25,498) ​ (334,675) (386,767) Actuarial Remeasurements (457,421) ​ 467,106 546,911 Restriction recognized in Other Comprehensive Income 178,941 ​ (42,317) (94,198) Remeasurements recognized in Other Comprehensive Income (303,978) ​ 90,114 65,946 ​ The historical actuarial remeasurements are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 2018 2017 Present value of defined benefit obligation (5,409,065) ​ (5,921,285) ​ (4,601,965) (4,391,251) (4,314,592) Fair value of the plan assets 4,647,361 ​ 4,652,000 ​ 3,656,891 3,568,934 3,456,613 Surplus (Deficit) (761,704) ​ (1,269,285) ​ (945,074) (822,317) (857,979) Experience adjustments on plan liabilities (Gain) (457,421) ​ 467,106 ​ 546,911 (370,083) 235,549 Experience adjustments on plan assets (Gain) (25,498) ​ (334,675) ​ (386,767) 253,301 (232,214) ​ Actuarial remeasurements are recognized in the period in which they occur and are recorded directly in comprehensive income. The allocations for plan assets are presented below: ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ Brazilian Plans American Plans Fixed income 99.2% ​ 50.4% Variable income — ​ 43.0% Others 0.8% ​ 6.6% Total 100.0% ​ 100.0% ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ Brazilian Plans American Plans Fixed income 99.1% ​ 46.6% Variable income — ​ 47.1% Others 0.9% ​ 6.3% Total 100.0% ​ 100.0% ​ The investment strategy for the Brazilian Plan is based on a long-term macroeconomic scenario. This scenario assumes a reduction in Brazil’s sovereign risk, moderate economic growth, stable levels of inflation, exchange rates and moderate interest rates. The Canadian and American subsidiaries have an Investment Committee that defines the investment policy for the defined benefit plans. The primary investment objective is to ensure the security of benefits that were accrued under the plans, providing an adequately funded asset pool which is separated and independent of the Company. To reach this objective, the fund must invest in a manner that adheres to safeguards and diversification to which a prudent investor of pension funds would normally adhere. These subsidiaries retain specialized consultants that advice and support Investment Committee decisions and recommendations. The asset mix policy considers the principles of diversification and long-term investment goals, as well as liquidity requirements. To do this, the target allocation ranges between 50% in shares, 40% in debt securities and 10% in alternative securities, and for Brazilian Plan it is close to 100% in fixed income. The tables below show a summary of the assumptions used to calculate the defined benefit plans in 2021 and 2020, respectively: ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ Brazilian Plan North America Plan Average discount rate 8.82% ​ 2.80% -2.90% Rate of increase in compensation Not applicable 3.00% Mortality table AT-2000 per sex RP-2006 and MP-2021 Mortality table of disabled AT-2000 per sex RP-2006 and MP-2021 Rate of rotation Null Based on age and/or the service ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ Brazilian Plan North America Plan Average discount rate 6.56% ​ 2.25% - 2.50% Rate of increase in compensation Not applicable 3.00% Mortality table AT-2000 per sex RP-2006 and MP-2020 Mortality table of disabled AT-2000 per sex RP-2006 and MP-2020 Rate of rotation Null Based on age and/or the service ​ b) Post-employment defined contribution pension plan The Company and its subsidiaries in Brazil, in the United States and in Canada maintain a defined contribution plan to which contributions are made by the sponsor in proportion to the contributions made by its participating employees. The total cost of these plans was R$162,133 in 2021 (R$133,963 in 2020). c) Post-employment health care benefit plan The North American plans include, in addition to pension benefits, specific health care benefits for employees who retire after a certain age and with a certain number of years of service. The Americans and Canadian subsidiaries have the right to change or eliminate these benefits, and the contributions are actuarially calculated. The net periodic costs of post-employment health care benefits are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Current service cost 3,458 ​ 4,964 3,302 Interest expense 8,239 ​ 11,311 10,656 Past service cost (32,434) ​ (660) (2,717) Net cost pension benefit (20,737) ​ 15,615 11,241 ​ The funded status of the post-employment health benefits plans is as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 Present value of obligations (318,181) ​ (362,944) Total net liabilities (318,181) ​ (362,944) ​ Changes in plan assets and actuarial liabilities were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Change in benefit obligation ​ ​ ​ ​ ​ ​ Benefit obligation at beginning of the year 362,944 298,989 272,959 Cost of service 3,458 ​ 4,964 3,302 Interest expense 8,239 ​ 11,311 10,656 Past service cost (32,434) ​ (660) (2,717) Contributions from participants 2,032 ​ 2,349 2,088 Payment of benefits (17,431) ​ (20,870) (15,331) Remeasurements (36,938) ​ (23,533) 11,202 Exchange variations 28,311 ​ 90,394 16,830 Benefit obligation at the end of the year 318,181 ​ 362,944 298,989 ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Change in plan assets ​ ​ ​ ​ ​ ​ Contributions from sponsors 24,713 ​ 19,150 13,243 Contributions from participants 2,032 ​ 2,349 2,088 Payments of benefits (26,745) ​ (21,499) (15,331) Fair value of plan assets at end of the year — ​ — — ​ The historical actuarial gains and losses of the plans are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 2018 2017 Present value of defined benefit obligation (318,181) ​ (362,944) ​ (298,989) (272,959) (316,364) Deficit (318,181) ​ (362,944) ​ (298,989) (272,959) (316,364) Experience adjustments on plan liabilities (36,938) ​ (23,533) ​ 11,202 (40,841) (14,452) ​ The amounts recognized as actuarial gains and losses in other comprehensive income are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Losses / Gains on actuarial obligation (36,938) ​ (23,533) ​ 11,202 Actuarial losses recognized in Equity (36,938) ​ (23,533) ​ 11,202 ​ The accounting assumptions adopted for post-employment health benefits are as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 Average discount rate 2.80% - 2.90% ​ 2.25% - 2.50% Health treatment - rate assumed next year 4.99% - 6.20% ​ 6.10% - 6.50% Health treatment - Assumed rate of decline in the cost to achieve in the years of 2028 to 2041 3.20% - 4.50% ​ 4.00% - 4.40% ​ The assumptions adopted for post-employment health benefits have a significant effect on the amounts disclosed and recorded for post-employment health benefits plans. The change of one-point percentage on discount rates would have the following effects: ​ ​ ​ ​ ​ ​ ​ 1% Increase 1% Decrease Effect over total service costs and interest costs 1,710 (1,327) Effect over benefit plan obligations 32,082 (26,573) ​ d) Other retirement and termination benefits The benefits of this plan provide a compensation supplement up to retirement date, cost of living allowance, and other benefits as a result of termination and retirement of the employees. The Company estimates that the total obligation for these benefits was R$13,290 as of December 31, 2021 (R$56,903 as of December 31, 2020).

ENVIRONMENTAL LIABILITIES

ENVIRONMENTAL LIABILITIES	12 Months Ended
	Dec. 31, 2021
ENVIRONMENTAL LIABILITIES
ENVIRONMENTAL LIABILITIES	NOTE 22 — ENVIRONMENTAL LIABILITIES The steel industry uses and generates substances that may damage the environment. The Company and its subsidiaries believe they are compliant with all the applicable environmental regulations in the countries where they operate. The Company’s management performs frequent analysis with the purpose of identifying potentially impacted areas and a liability is recorded based on the best estimate of costs for investigation, treatment and cleaning of potentially affected sites. The balances of the provisions are as follows: ​ ​ ​ ​ ​ ​ ​ 2021 2020 Provision for environmental liabilities 575,709 ​ 297,094 Current 231,711 ​ 125,992 Non-current 343,998 ​ 171,102 ​

OBLIGATIONS WITH FIDC - INVESTM

OBLIGATIONS WITH FIDC - INVESTMENT FUND IN CREDIT RIGHTS	12 Months Ended
	Dec. 31, 2021
OBLIGATIONS WITH FIDC - INVESTMENT FUND IN CREDIT RIGHTS
OBLIGATIONS WITH FIDC - INVESTMENT FUND IN CREDIT RIGHTS	NOTE 23 — OBLIGATIONS WITH FIDC - INVESTMENT FUND IN CREDIT RIGHTS Part of the assets resulting from the favorable judgments of credits with Eletrobrás mentioned in Note 19 iv, were used to set up a Non Standardized Credit Right Investment Fund, constituted and duly authorized to operate by the Securities and Exchange Commission of Brazil (“FIDC NP Barzel”). On July 14, 2015, the single quota of that FIDC was sold in the acquisition of minority interests’ transaction in subsidiaries of Gerdau S.A. The Company assures the FIDC, through the transfer agreement price adjustments clause, minimum return on the transferred amount of the credit’s rights on the lawsuits. However, where the amounts received in the lawsuits exceed the transferred amount, monetarily adjusted, the Company will be entitled to a percentage of that gain. Additionally, the Company has the right of first offer to repurchase those receivables in the event of sale by the Fund, in accordance with the contract subscribed. On April 5, 2021, the Fund decided to sell part of the credit rights and the Company exercised its right of first offer, acquiring such rights at their respective book values, upon payment of R$ 954,916. On December 31, 2021, the Company has the amount of R$45,497 recognized in the account “Obligations with FIDC” in the Current liabilities (R$944,513 and R$42,893 on December 31, 2020, as Current Liabilities and Non-current liabilities, respectively).

EQUITY

EQUITY	12 Months Ended
	Dec. 31, 2021
EQUITY.
EQUITY	NOTE 24 — EQUITY a) Capital The Board of Directors may, without need to change the bylaws, issue new shares (authorized capital), including the capitalization of profits and reserves up to the authorized limit of 1,500,000,000 common shares and 3,000,000,000 preferred shares, all without nominal value. In the case of capital increase through subscription of new shares, the right of preference shall be exercised in up to 30 days , except in the case of a public offering, when the limit is not less than 10 days . Reconciliations of common and preferred outstanding shares are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ Common shares Preferred shares Common shares Preferred shares Common shares Preferred shares Balance at beginning of the year 571,929,945 1,129,231,487 571,929,945 1,127,010,827 571,929,945 1,124,233,755 Exercise of long-term incentive plan — 4,585,414 — 2,220,660 — 2,777,072 Balance at the end of the year 571,929,945 ​ 1,133,816,901 ​ 571,929,945 ​ 1,129,231,487 ​ 571,929,945 ​ 1,127,010,827 ​ As of December 31, 2021, 573,627,483 common shares and 1,146,031,245 preferred shares are subscribed and paid up, with a total capital of R$19,249,181 (net of share issuance costs). Ownership of the shares is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders ​ ​ 2021 Shareholders Common % Pref. % Total % Metalúrgica Gerdau S.A. * 557,898,901 97.3 — — 557,898,901 32.4 Brazilian institutional investors 4,363,438 0.8 232,421,779 20.3 236,785,217 13.8 Foreign institutional investors 1,895,038 0.3 490,810,572 42.8 492,705,610 28.7 Other shareholders 7,772,568 1.4 410,584,550 35.8 418,357,118 24.3 Treasury stock 1,697,538 0.2 12,214,344 1.1 13,911,882 0.8 ​ 573,627,483 100.0 1,146,031,245 100.0 1,719,658,728 100.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders ​ ​ 2020 Shareholders Common % Pref. % Total % Metalúrgica Gerdau S.A. * 557,898,901 97.3 2,147,800 0.2 560,046,701 32.6 Brazilian institutional investors 3,397,955 0.6 227,262,531 19.8 230,660,486 13.4 Foreign institutional investors 3,142,148 0.5 492,076,396 42.9 495,218,544 28.8 Other shareholders 7,490,941 1.3 407,744,760 35.6 415,235,701 24.1 Treasury stock 1,697,538 0.3 16,799,758 1.5 18,497,296 1.1 ​ 573,627,483 100.0 1,146,031,245 100.0 1,719,658,728 100.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders ​ ​ 2019 Shareholders Common % Pref. % Total % Metalúrgica Gerdau S.A. * 557,898,901 97.3 69,852,184 6.1 627,751,085 36.5 Brazilian institutional investors 3,068,614 0.5 241,698,143 21.1 244,766,757 14.2 Foreign institutional investors 3,875,655 0.7 427,735,548 37.3 431,611,203 25.1 Other shareholders 7,086,775 1.2 387,724,952 33.8 394,811,727 23.0 Treasury stock 1,697,538 0.3 19,020,418 1.7 20,717,956 1.2 ​ 573,627,483 100.0 1,146,031,245 100.0 1,719,658,728 100.0 * Metalurgica Gerdau S.A. is the controlling shareholder and Indac – Ind. e Com. S.A. (holding of Gerdau’s family) is the utltimate controlling shareholder of the Company. Preferred shares do not have voting rights and cannot be redeemed but have the same rights as common shares in the distribution of dividends and priority in the capital distribution in case of liquidation of the Company. b) Treasury stocks Changes in treasury stocks are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ Common shares R$ Preferred shares R$ Opening balance 1,697,538 557 16,799,758 228,752 Exercise of long-term incentive plan — — (4,585,414) (76,900) Closing balance 1,697,538 557 12,214,344 151,852 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ Common shares R$ Preferred shares R$ Opening balance 1,697,538 557 19,020,418 241,985 Exercise of long-term incentive plan — — (2,220,660) (13,233) Closing balance 1,697,538 557 16,799,758 228,752 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ Common shares R$ Preferred shares R$ Opening balance 1,697,538 557 21,797,490 279,869 Exercise of long-term incentive plan — — (2,777,072) (37,884) Closing balance 1,697,538 557 19,020,418 241,985 ​ These shares are held in treasury for subsequent cancellation, selling in the market or to be granted under the long-term incentive plan of the Company. The average acquisition cost of these shares was R$12.43 during 2021 (R$13.62 and R$12.72 during the years ended on December 31, 2020 and 2019, respectively). c) Capital reserves — d) Retained earnings I) Legal reserves — II) Tax incentives reserve — III) Investments and working capital reserve — e) Operations with non-controlling interests ​ The effects of interest changes in subsidiaries for the years presented are composed of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ Attributed to parent ​ Non-controlling ​ ​ ​ company’s interest interests Total (i) Other changes — (18,962) (18,962) Effects of interest changes in subsidiaries — (18,962) (18,962) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Attributed to parent ​ Non-controlling ​ ​ ​ company’s interest interests Total (i) Other changes — 12,776 12,776 Effects of interest changes in subsidiaries — 12,776 12,776 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ ​ Attributed to parent ​ Non-controlling ​ ​ ​ company’s interest interests Total (i) Other changes — (1,586) (1,586) Effects of interest changes in subsidiaries — (1,586) (1,586) (i) Other changes in subsidiaries without losing control, which may include among others, capital increases, other acquisitions of interests and dilutions of any nature. f) Other reserves g) Dividends and interest on capital ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Net income 15,494,111 2,365,763 1,203,736 Constitution of legal reserve ​ (756,334) ​ (109,649) ​ (55,876) Constitution of the tax incentives reserve ​ (367,430) ​ (172,792) ​ (86,216) Net income before dividends and interest on capital ​ 14,370,347 ​ 2,083,322 ​ 1,061,644 Dividends and interest on capital ​ (5,014,450) ​ (714,487) ​ (356,539) Dividend - adjustment in excess of the minimum estatutory undistributed ​ (341,150) ​ — ​ — Net income before constitution of investments and working capital reserve ​ 9,014,747 ​ 1,368,835 ​ 705,105 ​ ​ ​ ​ ​ ​ ​ Constitution of investments and working capital reserve ​ (9,014,747) ​ (1,368,835) ​ (705,105) ​ The dividends for the years 2021, 2020 and 2019 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends and interest on capital in the years ​ ​ ​ Outstanding shares ​ ​ ​ ​ ​ Period ​ Nature ​ R$ /share ​ (thousands) ​ Credit ​ Payment ​ 2021 ​ 2020 ​ 2019 1 st ​ Dividends ​ 0.40 ​ 1,705,338 ​ 5/14/2021 ​ 5/26/2021 ​ 682,199 ​ — ​ 118,803 2 nd Dividends 0.54 1,705,576 8/16/2021 8/26/2021 921,011 — 118,817 3 rd Interest 0.38 1,705,582 9/27/2021 11/16/2021 648,122 — — 3 rd Interest 0.20 1,705,630 11/5/2021 11/16/2021 341,126 — — 3 rd Dividends 1.42 1,705,628 11/5/2021 11/16/2021 2,421,992 204,139 67,951 4 th Dividends 0.20 1,705,747 3/7/2022 3/16/2022 341,150 — 50,968 4 th ​ Interest ​ ​ ​ ​ ​ ​ ​ ​ ​ — ​ 510,348 ​ — Proposed Interest and Dividends ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5,355,600 ​ 714,487 ​ 356,539 Credit per share (R$) 3.14 0.42 0.21 ​ ​ ​ ​ ​

EARNINGS (LOSS) PER SHARE (EPS)

EARNINGS (LOSS) PER SHARE (EPS)	12 Months Ended
	Dec. 31, 2021
EARNINGS (LOSS) PER SHARE (EPS)
EARNINGS (LOSS) PER SHARE (EPS)	NOTE 25 — EARNINGS (LOSS) PER SHARE (EPS) The following tables reconcile net income to the amounts used to calculate basic and diluted earnings per share. Basic ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ Common Preferred Total ​ ​ (in thousands, except share and per share data) Basic numerator Allocated net income available to common and preferred shareholders 5,198,011 10,296,100 15,494,111 ​ ​ ​ ​ ​ ​ ​ Basic denominator Weighted-average outstanding shares, after deducting the average tresuary shares 571,929,945 1,132,865,567 ​ ​ ​ ​ ​ ​ ​ Earnings per share (in R$) — Basic 9.09 9.09 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ Common Preferred Total ​ ​ (in thousands, except share and per share data) Basic numerator Allocated net income available to common and preferred shareholders 795,617 1,570,146 2,365,763 ​ ​ ​ ​ ​ ​ ​ Basic denominator Weighted-average outstanding shares, after deducting the average tresuary shares 571,929,945 1,128,700,478 ​ ​ ​ ​ ​ ​ ​ Earnings per share (in R$) — Basic 1.39 1.39 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ Common Preferred Total ​ ​ (in thousands, except share and per share data) Basic numerator Allocated net income available to common and preferred shareholders 405,607 798,129 1,203,736 ​ ​ ​ ​ ​ ​ ​ Basic denominator Weighted-average outstanding shares, after deducting the average tresuary shares 571,929,945 1,125,408,180 ​ ​ ​ ​ ​ ​ ​ Earnings per share (in R$) — Basic 0.71 0.71 ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 ​ 2019 Diluted numerator ​ ​ ​ ​ ​ ​ Allocated net income available to Common and Preferred shareholders ​ ​ Net income allocated to preferred shareholders 10,296,100 1,570,146 ​ 798,129 Add: ​ Adjustment to net income allocated to preferred shareholders in respect to the potential increase in number of preferred shares outstanding, as a result of long-term incentive plans of Gerdau. 26,192 5,524 ​ 2,884 ​ 10,322,292 1,575,670 ​ 801,013 Net income allocated to common shareholders 5,198,011 795,617 ​ 405,607 Less: ​ Adjustment to net income allocated to preferred shareholders in respect to the potential increase in number of preferred shares outstanding, as a result of long-term incentive plans of Gerdau. (26,192) (4,782) ​ (2,884) ​ 5,171,819 790,835 ​ 402,723 Diluted denominator ​ ​ ​ ​ Weighted - average number of shares outstanding ​ ​ ​ ​ Common Shares 571,929,945 571,929,945 ​ 571,929,945 Preferred Shares ​ ​ ​ ​ Weighted-average number of preferred shares outstanding 1,132,865,567 1,128,700,478 ​ 1,125,408,180 Potential increase in number of preferred shares outstanding in respect of long-term incentive plan of Gerdau 8,633,716 10,821,083 ​ 12,157,614 Total 1,141,499,283 1,139,521,561 ​ 1,137,565,794 ​ ​ ​ ​ ​ ​ ​ Earnings per share — Diluted (Common and Preferred Shares) 9.04 1.38 ​ 0.70 ​

LONG-TERM INCENTIVE PLANS

LONG-TERM INCENTIVE PLANS	12 Months Ended
	Dec. 31, 2021
LONG-TERM INCENTIVE PLANS
LONG-TERM INCENTIVE PLANS	NOTE 26 — LONG-TERM INCENTIVE PLANS a) Quantity Summary of Restricted Shares and Performance Shares: ​ ​ ​ ​ Balance on January 1, 2019 14,261,501 Granted 2,647,995 Cancelled (2,104,754) Exercised (1,786,335) Balance on December 31, 2019 13,018,407 Granted 3,146,696 Cancelled (1,777,100) Exercised (1,918,669) Balance on December 31, 2020 12,469,334 Granted 2,228,196 Cancelled (1,755,522) Exercised (4,407,441) Balance on December 31, 2021 8,534,567 ​ The Company recognizes the cost of the long-term incentive plan through Restricted Shares and Performance Shares based on the fair value of the options granted on the grant date during the vesting period of each grant. The grace period for the year is 3 years for grants made as from 2017. The costs with long-term incentive plans recognized in the income statement on December 31, 2020 were R$ 65,289 (R$ 62,801 and R$ 43,895 on December 31, 2020 and 2019, respectively). ​ As of December 31, 2021, the Company has a total of 12,214,344 preferred shares in treasury and, according to Note 24, these shares may be used for serving this plan. ​ b) Stock Options Plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 ​ ​ Average exercise ​ Average exercise ​ Average exercise ​ Number of shares price in the year Number of shares price in the year Number of shares price in the year ​ ​ R$ ​ R$ ​ R$ Available at beginning of the year ​ — ​ — ​ — ​ — ​ 15,480 ​ 16.72 Options Forfeited ​ — ​ — ​ — ​ — ​ (15,480) ​ 16.72 Available at the end of the year ​ — ​ — ​ — ​ — ​ — ​ — ​

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2021
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 27 — SEGMENT REPORTING ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Segments ​ ​ 2021 ​ ​ North America South America Special Steel Eliminations and ​ ​ ​ Brazil Operation ​ Operation ​ Operation ​ Operation ​ Adjustments ​ Consolidated Net sales 34,757,720 ​ 27,838,000 ​ 6,856,766 ​ 10,980,191 ​ (2,087,596) ​ 78,345,081 Cost of sales (22,496,140) ​ (22,416,578) ​ (5,332,853) ​ (9,427,221) ​ 2,145,071 ​ (57,527,721) Gross profit 12,261,580 ​ 5,421,422 ​ 1,523,913 ​ 1,552,970 ​ 57,475 ​ 20,817,360 Selling, general and administrative expenses (781,942) ​ (639,370) ​ (157,912) ​ (233,348) ​ (293,379) ​ (2,105,951) Other operating income (expenses) 137,649 ​ 42,141 ​ 27,514 ​ 71,287 ​ 241,140 ​ 519,731 Eletrobras compulsory loan recovery ​ — ​ — ​ — ​ — ​ 1,391,280 ​ 1,391,280 Results in operations with subsidiary and joint ventures (note 3.4) ​ — ​ — ​ — ​ — ​ (162,913) ​ (162,913) Impairment of financial assets ​ 7,823 ​ (7,668) ​ (1,073) ​ 1,275 ​ — ​ 357 Equity in earnings of unconsolidated companies — ​ 279,948 ​ 268,291 ​ 28,831 ​ (13,912) ​ 563,158 Operational income before financial income (expenses) and taxes 11,625,110 ​ 5,096,473 ​ 1,660,733 ​ 1,421,015 ​ 1,219,691 ​ 21,023,022 Financial result, net (538,341) ​ (156,437) ​ (314,473) ​ (238,249) ​ 497,046 ​ (750,454) Income (Loss) before taxes 11,086,769 ​ 4,940,036 ​ 1,346,260 ​ 1,182,766 ​ 1,716,737 ​ 20,272,568 Income and social contribution taxes (2,769,495) ​ (1,092,146) ​ (377,286) ​ (287,292) ​ (187,411) ​ (4,713,630) Net income (Loss) 8,317,274 3,847,890 968,974 895,474 1,529,326 15,558,938 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental information: Net sales between segments 1,352,079 70,904 16,297 648,316 — 2,087,596 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation/amortization 1,330,963 627,483 213,001 487,114 — 2,658,561 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in associates and joint ventures — 1,871,274 ​ 1,071,333 251,668 146,500 ​ 3,340,775 Total assets 24,835,717 22,096,314 ​ 7,113,706 13,658,147 6,110,729 ​ 73,814,613 Total liabilities 8,105,443 4,603,424 ​ 2,376,176 2,801,071 13,112,850 ​ 30,998,964 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Segments ​ ​ 2020 ​ ​ North America South America Special Steel Eliminations and ​ ​ ​ Brazil Operation ​ Operation ​ Operation ​ Operation ​ Adjustments ​ Consolidated Net sales 17,752,823 ​ 17,458,318 ​ 3,831,406 ​ 6,096,471 ​ (1,324,357) ​ 43,814,661 Cost of sales (14,179,991) ​ (16,212,757) ​ (3,015,189) ​ (5,794,666) ​ 1,318,501 ​ (37,884,102) Gross profit 3,572,832 ​ 1,245,561 ​ 816,217 ​ 301,805 ​ (5,856) ​ 5,930,559 Selling, general and administrative expenses (562,019) ​ (476,518) ​ (116,479) ​ (179,822) ​ (195,547) ​ (1,530,385) Other operating income (expenses) 31,500 ​ 97,751 ​ 16,684 ​ 55,097 ​ 916,667 ​ 1,117,699 Impairment of non-financial assets ​ — ​ (342,355) ​ — ​ (69,570) ​ — ​ (411,925) Impairment of financial assets ​ (23,177) ​ (36,286) ​ (2,436) ​ (2,233) ​ — ​ (64,132) Equity in earnings of unconsolidated companies (1,287) ​ 23,512 ​ 99,341 ​ 8,899 ​ 22,104 ​ 152,569 Operational income before financial income (expenses) and taxes 3,017,849 ​ 511,665 ​ 813,327 ​ 114,176 ​ 737,368 ​ 5,194,385 Financial result, net (442,972) ​ (206,405) ​ (60,787) ​ (215,433) ​ (773,110) ​ (1,698,707) Income (Loss) before taxes 2,574,877 ​ 305,260 ​ 752,540 ​ (101,257) ​ (35,742) ​ 3,495,678 Income and social contribution taxes (652,126) ​ (178,447) ​ (195,440) ​ 13,229 ​ (94,840) ​ (1,107,624) Net income (Loss) 1,922,751 126,813 557,100 (88,028) (130,582) 2,388,054 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental information: Net sales between segments 1,149,618 60,370 41 114,328 — 1,324,357 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation/amortization 1,135,294 777,369 142,143 444,298 — 2,499,104 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in associates and joint ventures 10,186 908,338 ​ 976,046 231,152 145,907 ​ 2,271,629 Total assets 21,099,735 18,583,439 ​ 5,448,922 11,233,676 6,757,237 ​ 63,123,009 Total liabilities 7,469,541 5,261,820 ​ 1,360,098 1,994,575 15,951,765 ​ 32,037,799 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Segments ​ ​ 2019 ​ ​ North America South America Special Steel Eliminations and ​ ​ ​ Brazil Operation ​ Operation ​ Operation ​ Operation ​ Adjustments ​ Consolidated Net sales 16,122,171 ​ 14,656,028 ​ 3,259,253 ​ 6,701,900 ​ (1,095,342) ​ 39,644,010 Cost of sales (14,363,253) ​ (13,351,209) ​ (2,762,157) ​ (6,167,502) ​ 1,203,395 ​ (35,440,726) Gross profit 1,758,918 ​ 1,304,819 ​ 497,096 ​ 534,398 ​ 108,053 ​ 4,203,284 Selling, general and administrative expenses (539,344) ​ (444,326) ​ (119,627) ​ (170,170) ​ (156,989) ​ (1,430,456) Other operating income (expenses) 295,818 ​ 44,660 ​ 17,416 ​ 35,571 ​ 55,734 ​ 449,200 Impairment of financial assets ​ (2,012) ​ (14,612) ​ (1,906) ​ (2,513) ​ — ​ (21,044) Equity in earnings of unconsolidated companies (828) ​ (110,959) ​ 66,468 ​ 6,776 ​ 21,493 ​ (17,050) Operational income before financial income (expenses) and taxes 1,512,552 ​ 779,582 ​ 459,447 ​ 404,062 ​ 28,291 ​ 3,183,934 Financial result, net (520,821) ​ (99,029) ​ (163,459) ​ (109,116) ​ (616,789) ​ (1,509,214) Income (Loss) before taxes 991,731 ​ 680,553 ​ 295,988 ​ 294,946 ​ (588,498) ​ 1,674,720 Income and social contribution taxes (214,400) ​ (188,458) ​ (100,341) ​ (60,749) ​ 106,115 ​ (457,833) Net income (Loss) 777,331 492,095 195,647 234,197 (482,383) 1,216,887 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental information: ​ ​ ​ ​ ​ ​ Net sales between segments 920,659 62,196 — 112,487 — 1,095,342 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation/amortization 1,008,713 571,015 120,462 374,105 — 2,074,295 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in associates and joint ventures 11,472 681,807 ​ 748,392 224,201 146,527 ​ 1,812,399 Total assets 17,195,824 15,178,053 ​ 4,562,604 8,597,180 8,469,309 ​ 54,002,970 Total liabilities 4,686,686 4,506,771 ​ 996,876 1,604,885 15,034,625 ​ 26,829,843 ​ The main products sold in each segment are: Brazil Operations: rebar, bars, shapes, drawn products, billets, blooms, slabs, wire rod, structural shapes and iron ore. North America Operations: rebar, bars, wire rod, light and heavy structural shapes. South America Operations: rebar, bars and drawn products. Special Steel Operations: stainless steel, round, square and flat bars, wire rod. The column of eliminations and adjustments includes the elimination of sales between segments in the context of the Consolidated Financial Statements. The Company’s geographic information with revenues classified according to the geographical region where the products were shipped is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic Area ​ ​ Brazil ​ Latin America (1) ​ North America (2) ​ Consolidated ​ 2021 2021 2021 2021 Net sales 37,733,918 8,567,310 ​ 32,043,853 78,345,081 Total assets 31,740,469 8,959,237 ​ 33,114,907 73,814,613 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic Area ​ ​ Brazil ​ Latin America (1) ​ North America (2) ​ Consolidated ​ 2020 2020 2020 2020 Net sales 18,798,384 4,996,434 ​ 20,019,843 43,814,661 Total assets 28,752,629 7,042,462 ​ 27,327,918 63,123,009 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic Area ​ ​ Brazil ​ Latin America (1) ​ North America (2) ​ Consolidated ​ 2019 2019 2019 2019 Net sales 17,573,278 4,201,165 ​ 17,869,567 39,644,010 Total assets 26,124,159 5,781,527 ​ 22,097,284 54,002,970 (1) Does not include operations of Brazil (2) Does not include operations of Mexico

IMPAIRMENT OF ASSETS

IMPAIRMENT OF ASSETS	12 Months Ended
	Dec. 31, 2021
IMPAIRMENT OF ASSETS
IMPAIRMENT OF ASSETS	NOTE 28 — IMPAIRMENT OF ASSETS The Company performs tests for impairment of assets, notably goodwill and other long-lived assets, based on projections of discounted cash flows, which take into account assumptions such as: cost of capital, growth rate and adjustments applied to flows in perpetuity, methodology for working capital determination, investment plans, and long-term economic-financial forecasts. The impairment test of these assets are assessed based on the analysis of facts or circumstances that may indicate the need to perform the impairment test and are performed at least annually, for groups of cash generating units containing goodwill, in December, or whenever changes in events or circumstances indicate that the goodwill and other long-lived assets may be impaired. To determine the recoverable amount of each cash generating unit, the Company uses the discounted cash flow method, using as basis, financial and economic projections for each one. The projections are prepared by taking into consideration observed changes in the economic scenario in the market where the Company operates, as well as assumptions with respect to future results and the historical profitability of each segment. The Company maintains its monitoring of the steel market in order to identify any deterioration, significant drop in demand from steel consuming sectors (notably automotive and construction), stoppage of industrial plants or significant changes in the economy or financial market that result in increased perception of risk or reduction of liquidity and refinancing capacity. 28.1 Other assets Impairment test In 2021 and 2019, no impairment losses were recognized for other long-lived assets. In the fourth quarter of 2020, tests performed on other long-lived assets identified impairment losses in property, plant and equipment in the amount of R$411,925, of which R$69,570 in the Special Steel segment and R$342,355 in the North America segment, resulting from a recoverable amount below the book value. These losses were determined based on the difference between the book value and the recoverable amount of these assets, which represents their value in use (higher between the fair value net of disposal expenses and their value in use). These losses were recorded in the line of Impairment of non-financial assets in the Consolidated Statements of Income. The post-tax discount rates used for this test are the same as presented in Note 28.2 of the goodwill impairment test. 28.2 Goodwill impairment test The Company has four operating segments, which represents the lowest level in which goodwill is monitored by the Company. In 2021, 2020 and 2019, no impairment losses were recognized for goodwill. The period for projecting the cash flows for the goodwill impairment test was five years. The assumptions used to determine the value in use based on the discounted cash flow method include analysis prepared in dollars, such as: projected cash flows based on management estimates for future cash flows, exchange rates, discount rates and growth rates on perpetuity. The cash flow projections already reflect a competitive scenario, as well as macroeconomic challenges in some geographies in which the Company operates. The perpetuity was calculated considering stable operating margins, levels of working capital and investments. The perpetuity growth rates considered in the 2021 test were: a) North America: 3 % (3% in December 2020); b) Special Steel: 3 % (3% in December 2020); c) South America: 3 % (3% in December 2020); and d) Brazil: 3 % (3% in December 2020). The post-tax discount rates used were determined taking into consideration market information available on the date of performing the impairment test. The Company adopted distinct rates for each business segment tested with the purpose of reflecting the differences among the markets in which each segment operates, as well as the risks associated to each of them. The post-tax discount rates used were: a) North America: 9.50% (8.25% in December 2020); b) Special Steel: 10.50% (8.75% in December 2020); c) South America: 15.00 % (11.25% in December 2020); and d) Brazil 11.25%: (9.75% in December 2020). Discounted cash flows are compared to the book value of each segment and result in the recoverable amount that exceeded book value as shown below: a) North America: R$5,769 million (R$6,202 million in 2020); b) Special Steel: R$4,238 million (R$2,509 million in 2020); c) South America: R$2,248 million (R$4,141 million in 2020); and d) Brazil: R$8,994 million (R$13,424 million in 2020). The Company performed a sensitivity analysis in the assumptions of discount rate and perpetuity growth rate, due to the potential impact in the discounted cash flows. An increase of 0.5 percentage points in the discount rate of each segment’s cash flow would result in a recoverable amount that exceeded book value as shown below: a) North America: R$4,337 million (R$4,589 million in 2020); b) Special Steel: R$3,301 million (R$1,568 million in 2020); c) South America: R$2,057 million (R$3,757 million in 2020); and d) Brazil: R$7,582 million (R$11,348 million in 2020). On the other hand, a decrease of 0.5 percentage points in the perpetuity growth rate of the cash flow of each business segment would result in a recoverable amount that exceeded book value as shown below: a) North America: R$4,679 million (R$4,914 million in 2019); b) Special Steel: R$3,545 million (R$1,754 million in 2020); c) South America: R$2,135 million (R$3,867 million in 2020); and d) Brazil: R$7,962 million (R$11,809 million in 2020). The Company will maintain over the next year its constant monitoring of the steel market in order to identify any deterioration, significant drop in demand from steel consuming sectors (notably automotive and construction), stoppage of industrial plants or activities significant changes in the economy or financial market that result in increased perception of risk or reduction of liquidity and refinancing capacity. Although the projections made by the Company provide a more challenging scenario than that in recent years, the events mentioned above, if manifested in a greater intensity than that anticipated in the assumptions made by management, may lead the Company to revise its projections of value in use and eventually result in impairment losses.

EXPENSES BY NATURE

EXPENSES BY NATURE	12 Months Ended
	Dec. 31, 2021
EXPENSES BY NATURE
EXPENSES BY NATURE	NOTE 29 — EXPENSES BY NATURE The Company opted to present its Consolidated Income Statement by function. As required by IAS 1, the expenses classified by nature are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Depreciation and amortization (2,658,561) (2,499,104) (2,074,295) Labor expenses (7,249,811) (5,867,265) (5,175,373) Raw material and consumption material (43,720,989) (26,945,440) (25,890,618) Freight (3,898,360) (2,572,293) (2,300,439) Other expenses/income, net (1,585,863) (476,818) (1,002,301) Eletrobras compulsory loan recovery 1,391,280 — — Results in operations with subsidiary and joint ventures (162,913) — — Impairment of non-financial assets — (411,925) — ​ ​ (57,885,217) ​ (38,772,845) ​ (36,443,026) Classified as: Cost of sales (57,527,721) (37,884,102) (35,440,726) Selling expenses (715,830) (512,950) (476,339) General and administrative expenses (1,390,121) (1,017,435) (954,117) Other operating income 979,760 1,763,684 636,847 Other operating expenses (460,029) (645,985) (187,647) Eletrobras compulsory loan recovery ​ 1,391,280 ​ — ​ — Results in operations with subsidiary and joint ventures (162,913) — — Impairment of financial assets 357 (64,132) (21,044) Impairment of non-financial assets — ​ (411,925) — ​ ​ (57,885,217) ​ (38,772,845) ​ (36,443,026) ​

FINANCIAL INCOME

FINANCIAL INCOME	12 Months Ended
	Dec. 31, 2021
FINANCIAL INCOME
FINANCIAL INCOME	NOTE 30 — FINANCIAL INCOME ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 ​ ​ ​ ​ ​ ​ ​ Income from short-term investments 182,639 108,057 87,241 Interest income and other financial income 66,385 86,035 135,972 Financial Income 249,024 194,092 223,213 ​ ​ ​ ​ ​ ​ ​ Interest on debt (1,059,841) (1,022,460) (938,120) Monetary variation and other financial expenses (373,246) (426,001) (531,634) Financial Expenses (1,433,087) (1,448,461) (1,469,754) ​ ​ ​ ​ ​ ​ ​ Exchange Variation, net ​ (108,373) ​ (204,291) ​ (247,555) Bonds repurchase expenses ​ (264,687) ​ (239,273) ​ — Tax credits monetary update 788,741 — — Gains and losses on derivative financial instruments, net 17,928 (774) (15,118) Financial result, net (750,454) (1,698,707) (1,509,214) ​

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies)	12 Months Ended
	Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
Basis of Presentation	2.1 — Basis of Presentation The Company’s Consolidated Financial Statements have been prepared in accordance with and are in compliance with International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board The preparation of the Consolidated Financial Statements in accordance with IFRS requires Management to make accounting estimates. The areas that involve judgment or use of estimates significant to the Consolidated Financial Statements are stated in Note 2.17. The Consolidated Financial Statements have been prepared using historical cost as its basis, except for the valuation of certain financial instruments, which are measured at fair value. The Company adopted all applicable standards and revisions of standards and interpretations issued by the IASB or the IFRS Interpretations Committee that are effective as of December 31, 2021. a) Investments in Subsidiaries The Company’s consolidated financial statements include the financial statements of Gerdau S.A. and all its subsidiaries. The Company controls an entity when it is exposed or has the right to variable returns arising from their involvement with the entity and has the ability to affect those returns due to the power exercised over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Third parties’ interests in equity and net income of subsidiaries are reported separately in the consolidated balance sheet and in the consolidated statement of income, respectively, under the account “Non-controlling interests”. For business combinations, the assets, liabilities, and contingent liabilities of a subsidiary are reported at their respective fair value on the date of acquisition. Any excess of the acquisition cost over the fair value of the identifiable net assets acquired is recorded as goodwill. When the acquisition cost is less than the fair value of the net assets identified, the difference is recorded as a gain in the statement of income for the year in which the acquisition took place. The non-controlling interests are presented based on the proportion of the fair value of the identified assets and liabilities acquired. Intercompany transactions and balances are eliminated in the consolidation process. Gains or losses resulting from transactions among consolidated entities of the Company are also eliminated. b) Investments in Joint ventures and Associate companies Joint ventures are those in which the control is held jointly by the Company and one or more partners. An associate company is one in which the Company exercises significant influence, but over which it does not have control. Investments in joint ventures and associate companies are recorded under the equity accounting method. c) Equity in Earnings of Unconsolidated Companies According to this method, investments are recognized in the consolidated balance sheet at acquisition cost and are adjusted subsequently based on the Company’s share in the earnings and in other changes in the net assets of the Associates and Joint Ventures. The balances of the investments can also be reduced due to impairment losses. Furthermore, dividends received from these companies are recorded as reductions in the value of the investments.
Foreign Currency Translation	2.2 —Foreign Currency Translation a) Functional and Reporting Currency The functional currency of an entity is the currency of the primary economic environment where it operates. The Consolidated Financial Statements are presented in Brazilian Reais (R$), which is the functional and reporting currency of the Company. All balances were rounded to the nearest thousand, unless otherwise stated. b) Transactions and Balances For purposes of the Consolidated Financial Statements, the balances of each subsidiary of the Company are converted into Brazilian reais, which is the functional currency of the Company and the reporting currency of its Consolidated Financial Statements, at the exchange rates at the dates of the transactions. c) Translation of financial statements in foreign currency The results of operations and financial position of all subsidiaries included in the consolidated financial statements, along with equity investments, which have functional currencies different from the Company’s reporting currency are translated into the reporting currency as follows: i) Asset and liability balances are translated at the exchange rate in effect at the balance sheet date; ii) Income and expenses are translated using the average monthly exchange rates for the year; iii) Translation gains and losses resulting from the above methodology are recognized in Equity, in the Statement of Comprehensive Income, in the account named “Other reserves - Cumulative translation adjustment”; and iv) The amounts presented in the cash flow are extracted from the converted changes in assets, liabilities and results. d) Hyperinflation in Venezuela and Argentina Argentina and Venezuela are considered countries with hyperinflation and for this reason, the Financial Statements of the subsidiaries located in these countries are being updated so that their values are shown in the monetary unit of measurement at the end of the year, which considers the effects measured by the inflation rates in these countries.
Financial Assets	2.3 — Financial Assets At initial recognition, a financial asset is classified as measured at amortized cost, at fair value through profit or loss or at fair value through other comprehensive income. Financial assets are not reclassified subsequent to initial recognition, unless the Company changes the business model for the management of financial assets. The Company performs an evaluation of the business model objective in which a financial asset is held in the portfolio because this better reflects the way in which the business is managed. a) Financial assets at amortized cost These assets are measured subsequently to initial recognition at the amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized directly in income. Any gain or loss on derecognition is recognized on statement of income. b) Financial assets measured at fair value through profit or loss These assets are measured subsequently to initial recognition at the fair value. The net result, including interest, is recognized directly in income. c) Financial assets measured at fair value through other comprehensive income These assets are measured subsequently to initial recognition at fair value. Interest income calculated using the effective interest method, exchange gains and losses and impairment are recognized in the statement of income. Other net results are recognized in other comprehensive income. In derecognition, the accumulated result in other comprehensive income is reclassified to the statement of income. d) Impairment of financial assets The Company measures the impairment of financial assets in an amount equal to the Expected credit loss. In determining whether the credit risk of a financial asset has increased significantly since the initial recognition and in estimating the expected credit losses, the Company considers reasonable and supportable information that is significant and available without undue cost or effort. This includes quantitative and qualitative information and analysis, based on the Company’s historical experience, credit assessment and considering forward-looking information. The impairment loss of financial assets was calculated based on the credit risk analysis, which includes the historical losses, the individual situation of the clients, the situation of the economic group to which they belong, the real guarantees for the debts and the evaluation of the legal advisors and is considered sufficient to cover possible losses on amounts receivable, in addition to a prospective assessment that takes into account the change or expectation of change in economic factors that affect expected credit losses, which will be determined based on probabilities weighted. The Company presents the impairment of the financial assets in the Statement of Income in the line of Impairment of financial assets. e) Derecognition The Company derecognizes a financial asset when expire the contractual rights of the cash flows of the asset, or when the Company transfers the contractual rights of that cash flows in a transaction in which substantially all the risks and benefits of the financial asset are transferred or in which the Company neither transfers nor maintains substantially all the risks and benefits of the financial asset and also does not retain control over the financial asset. f) Offset Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to offset the amounts and intends to settle them on a net basis or to realize the asset and settle the liability simultaneously. g) Financial Instruments A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at fair value through profit or loss: it is maintained within a business model whose objective is to maintain financial assets to receive contractual cash flows; and its contractual terms generate, at specific dates, cash flows that are related only to payment of principal and interest outstanding amounts. A debt instrument is measured at fair value through other comprehensive income if it meets both of the following conditions and is not designated as measured at fair value through profit or loss: it is maintained within a business model whose objective is achieved both by receipt of contractual cash flows and sale of financial assets; and its contractual terms generate, on specific dates, cash flows that are only payments of principal and interest on the outstanding principal amount. In the initial recognition of an investment in an equity instrument that is not held for trading, the Company may irrevocably choose to present subsequent changes in the fair value of the investment in other comprehensive income. This choice is made investment by investment. The Company performs an evaluation of the business model objective in which a financial asset is held in the portfolio because this better reflects the way in which the business is managed, and the information is provided to Management. The information considered includes: the policies and objectives stipulated for the portfolio and the practical operation of those policies. They include the question of whether Management’s strategy focuses on obtaining contractual interest income, maintaining a certain interest rate profile, matching the duration of financial assets with the duration of related liabilities or expected outflows of cash, or the realization of cash flows through the sale of assets; how the performance of the portfolio is evaluated and reported to the Company’s Management; the risks that affect the performance of the business model (and the financial asset held in that business model) and the manner in which those risks are managed; the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and their expectations about future sales. h) Evaluation on whether contractual cash flows are only payments of principal and interest For the purposes of this valuation, the ‘principal’ is defined as the fair value of the financial asset at the initial recognition. ‘Interest’ is defined as a consideration for the time value of money and for the credit risk associated with the principal amount outstanding over a given period of time and for the other underlying risks and costs of borrowing (e.g. liquidity risk and costs administrative costs), as well as a profit margin. The Company considers the contractual terms of the instrument to assess whether contractual cash flows are only principal and interest payments. This includes assessing whether the financial asset contains a contractual term that could change the timing or value of the contractual cash flows so that it would not meet that condition. In making this assessment, the Company considers: contingent events that modify the value or the time of cash flows; terms that may adjust the contractual rate, including variable rates; the prepayment and the extension of the term; and terms that limit the Company’s access to cash flows of specific assets (for example, based on the performance of an asset). The prepayment is consistent with the principal and interest payments criterion if the prepayment amount represents, for the most part, unpaid principal and interest amounts on the outstanding principal amount - which may include additional compensation on the early termination of the contract.
Inventories	2.4 — Inventories Inventories are measured at the lower of historical cost of acquisition or production and net realizable value. The acquisition and production costs include transportation, storage and non-recoverable taxes. Net realizable value is the estimated sale price in the ordinary course of business less the estimated costs of completion and directly related selling expenses. Information regarding the allowance for adjustments to net realizable value is presented in Note 6.
Property, Plant and Equipment	2.5 — Property, Plant and Equipment Property, plant and equipment are stated at historical cost, monetarily adjusted when applicable, less depreciation, except for land, which is not depreciated. The Company recognizes monthly to the construction costs of qualified assets, which are assets that, necessarily, require a substantial period of time to be finished for its intended use, the borrowing costs as part of the acquisition cost of the property, plant and equipment under construction based on the following capitalization criteria: (a) the capitalization period begins when the property, plant and equipment item is under construction in process and the capitalization of borrowing costs ceases when the asset is available for use; (b) borrowing costs are capitalized considering the weighted average rate of loans existing on the capitalization date or a specific rate, in the case of loans for the acquisition of property, plant and equipment; (c) borrowing costs capitalized do not exceed the interest expenses during the capitalization period; and (d) capitalized borrowing costs are depreciated considering the same criteria and useful life determined for the property, plant and equipment item to which it was capitalized. Depreciation is calculated under the straight-line method at rates that take into consideration the estimated useful life of the asset, its level of utilization and the estimated residual value of the asset at the end of its useful life. The estimated residual value and useful life of the assets are reviewed and adjusted, if necessary, at each year-end. Subsequent costs are added to the carrying amount of property, plant and equipment or recognized as a specific item, as appropriate, only if the economic benefits associated to these items are probable and the amounts can be reliably measured. The carrying amount of replaced items is written-off. Other repairs and maintenance are recognized directly in income when incurred. Mining exploration rights are classified as Land and Buildings in the Property, plant and equipment account. Exploration expenditures are recognized as expenses until the feasibility of mining activity is established and thereafter subsequent costs are capitalized. Costs for the development of new iron ore reserves or to expand the capacity of operating mines are capitalized and amortized based on the amount of iron ore extracted. Stripping costs (costs associated with removal of waste and other residual materials) incurred during the development phase of a mine, before production phase, are registered as part of the depreciable cost of asset. Subsequently, these costs are depreciated over the useful life of the mine. Spending on waste removal, after the start of production of the mine, are treated as production costs. Depletion of mines is calculated based on the amount of ore extracted. The net book value of property, plant and equipment items is immediately impaired to its recoverable amount when the residual balance exceeds the recoverable amount.
Goodwill	2.6 — Goodwill Goodwill represents the excess of the acquisition cost over the fair value net of the assets acquired, liabilities assumed and identifiable contingent liabilities of a subsidiary, joint venture, or associate company, at the respective acquisition date. Goodwill is recorded as an asset and recorded under “Goodwill” account. Goodwill is not amortized and is subject to impairment tests annually or whenever there are indications of potential impairment. Any impairment loss is recorded as an expense in the income statement and cannot be reversed. Goodwill is allocated to the operating segments, which represents the lowest level at which goodwill is monitored by management. Goodwill that forms part of the carrying amount of an investment in an associate or a joint venture is not separately recognized. The entire carrying amount of the investment in associate or joint venture is tested for impairment as a single asset, by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with it carrying amount. When a subsidiary, joint venture or associate is sold, goodwill is included in the determination of gains and losses on disposal.
Other Intangible Assets	2.7 — Other Intangible Assets Other intangible assets are stated at acquisition cost, less accumulated amortization and impairment losses, when applicable. Intangible assets consist mainly of assets which represent the capacity to generate economic benefits from companies acquired based on relationships with customers and suppliers, software and others. Intangible assets with definite useful lives are amortized taking into consideration their actual use or a method that reflects their consumption of economic benefits. The net book value of intangible assets is impaired immediately to its recoverable value when the residual balance exceeds the recoverable amount (Note 2.8). Intangible assets acquired in a business combination are recorded at fair value, less accumulated amortization and impairment losses, when applicable. Intangible assets that have a defined useful life are amortized over their useful lives using an amortization method that reflects the period of economic benefit use of the intangible asset to record amortization through the period of use of that intangible and is recorded in the cost of sales account. The intangible relationship with customers and suppliers is amortized based on an accelerated method that considers the expected future economic benefit provided over time by these new acquired customers and suppliers. The Company reviews the amortization period and amortization method for its intangible assets with definite useful lives at the end of each year.
Provision for Impairment of Assets and Reversal of Impairment	2.8 — Provision for Impairment of Assets and Reversal of Impairment At each balance sheet date, the Company performs an assessment to determine whether there is evidence that the carrying amount of long-lived assets might be impaired. If such evidence is identified, the recoverable amount of the assets is estimated by the Company. The recoverable amount of an asset is determined as the higher of: (a) its fair value less estimated costs to selling and (b) its value in use. The value in use is measured based on discounted cash flows (before taxes) derived from the continuous use of the asset until the end of its estimated useful life. Regardless of whether or not there is any indication that the carrying amount of the asset may be impaired, the balances of goodwill arising from business combinations and intangible assets with indefinite useful lives are tested for impairment at least once a year in December. When the carrying amount of the asset exceeds its recoverable amount, the Company recognizes a reduction in the book value of the asset (Impairment). The reduction to the recoverable amount of the asset is recorded as an expense. Goodwill impairment, after recognized, is not allowed to be reversed, even if circunstances that resulted in the impairment changes. Other assets impairment may be reversed if circunstances that resulted in the impairment no longer exists, but in these circumstances the reversal of impairment is limited to the residual depreciated balance of the asset at the time of the reversal, determined as if the impairment had not been recorded. The Company does not believe there is a reasonable likelihood that a material change in the estimates or assumptions used to calculate long-lived asset impairment losses may occur. However, if actual results are not consistent with estimates and assumptions used in estimating future cash flows and asset fair values, the Company may be exposed to losses that could be material.
Financial Liabilities and Equity Instruments	2.9 — Financial Liabilities and Equity Instruments a) Financial liabilities Financial liabilities are classified as amortized cost or at fair value through profit or loss. A financial liability is classified as fair value through profit or loss if it is classified as held for trading, it is a derivative, or it is designated as such at initial recognition. Financial liabilities measured at fair value through profit or loss are measured at fair value and the net result, including interest, is recognized in the income statement. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense, exchange gains and losses are recognized in income. b) Derecognition The Company derecognizes a financial liability when its contractual obligation is withdrawn, canceled or expired. The Company also derecognizes a financial liability when the terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. In the derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in the income statement. c) Derivative Instruments and hedging The Company enters into derivative financial instruments mainly to manage its exposure to fluctuation in interest rates and exchange rates. The Company measures its derivative financial instruments, based on quotations obtained from market participants, at fair value at the balance sheet date. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge or a net investment hedge are recorded in the statement of comprehensive income. The Company assesses, both at the beginning of hedge coverage and on an ongoing basis, whether the derivatives used in hedge transactions are highly effective in offsetting changes in the fair value or cash flows of hedged items. When a cash flow hedge instrument is sold, terminated, expired or exercised, the hedge is discontinued prospectively, but the cumulative unrealized gain or loss is recognized in the comprehensive income statement. The cumulative gain and loss is transferred from the comprehensive income and recognized in the income statement when the hedged transaction is recognized in the statement of income. When no more than one transaction is expected to occur, the accumulated gain or loss is immediately transferred to the income statement. In cases of net investment hedges, the amount recorded in the statement of comprehensive income is written off and recognized in the statement of income when the disposal of the hedged investment occurs. In addition, changes in the fair value of financial instruments not characterized as hedges are recognized in the line of (Loss) Gains on financial instruments, net, in the statement of income. d) Equity instruments The equity component is initially recognized by the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.
Current and Deferred Income and Social Contribution Taxes	2.10 — Current and Deferred Income and Social Contribution Taxes Current income and social contribution tax expense is calculated in conformity with enacted tax rate in effect at the balance sheet date in the countries where the Company’s subsidiaries, associates and joint venture operate and generate taxable income. Management periodically evaluates positions taken in relation to tax matters which are subject to interpretation and recognizes a provision when there is an expectation of payment of income tax and social contribution in accordance with the tax bases. The expense for income tax and social contribution taxes comprises current and deferred taxes. Current tax and deferred tax are recognized in income unless they are recognized for a business combination, or for items directly recognized in equity through other comprehensive income. Current tax is the estimated tax payable or receivable on the taxable income or loss for the year, at the tax rates effective at the balance sheet date. Deferred income tax and social contribution are recognized in its total on the differences generated between assets and liabilities recognized for tax purposes and corresponding to amounts recognized in the Financial Statements. However, deferred income and social contribution taxes are not recognized arising from the initial recognition of assets and liabilities in a transaction other than a business combination and that do not affect the tax basis. Income and social contribution taxes are determined based on tax rates (and laws) effective at the balance sheet date and applicable when the respective income and social contribution taxes is paid. Deferred income and social contribution tax assets are recognized only to the extent that it is probable that there will be taxable income for which the temporary differences can be used, and tax losses can be compensated. Deferred tax assets recorded for tax loss carryforwards are supported by projections of taxable income based on technical feasibility studies submitted annually to the Board of Directors of the Company and its subsidiaries, when applicable. These studies consider historical profitability of the Company and its subsidiaries, expectations of continuous profitability and estimates of the recovery of deferred tax assets over future years. Other deferred tax assets arising from temporary differences, mainly tax provision, are recognized according to their estimate of realization. Deferred income tax and social contribution assets are reviewed at each reporting date and will be reduced to the extent that their realization is not more likely than not based on future taxable income. The Company recognizes a provision for tax matters only if a past event gives rise to a present obligation. The Company determines whether a present obligation exists at the end of the year considering all available evidence, including, for example, the opinion of legal advisors. The Company also considers whether it is more likely than not that there will be an outflow of assets and whether a reliable estimate can be made.
Employee Benefits	2.11 — Employee Benefits The Company has several employee benefit plans including pension and retirement plans, health care benefits, profit sharing, bonus, and share-based payment, as well as other retirement and termination benefits. The main benefit plans granted to the Company’s employees are described at Notes 21 and 26. The actuarial obligations related to the pension and retirement benefits and the actuarial obligations related to the health care plans are recorded based on actuarial calculations performed every year by independent actuaries, using the projected unit credit method, net of the plan assets, when applicable, and the related costs are recognized over the employees’ service period. Any employee benefit plan surpluses are also recognized up to the probable amount of reduction in future contributions by the Company. Actuarial remeasurement arising from adjustments and changes in actuarial assumptions of the pension and retirement benefit plans and actuarial obligations related to the health care plan are recognized directly in the Statement of Comprehensive Income as described in Note 21. In accounting for pension and post-retirement benefits, several statistical and other factors that attempt to anticipate future events are used to calculate plan expenses and liabilities. These factors include discount rate assumptions, return on plan assets, future increases in health care costs, and rate of future compensation increases. In addition, the Company and its actuary use other factors whose measurement involves judgment are used such as withdrawal, turnover, and mortality rates. The actuarial assumptions used by the Company may differ materially from actual results in future periods due to changing market and economic conditions, regulatory events, judicial rulings, higher or lower withdrawal rates, or longer or shorter participant life spans.
Other Current and Non-current Assets and Liabilities	2.12 — Other Current and Non-current Assets and Liabilities Other current and non-current assets and liabilities are recorded at their realizable amounts (assets) and at their known or estimated amounts plus accrued charges and monetary adjustments (liabilities), when applicable.
Related-Party Transactions	2.13 — Related-Party Transactions Loan agreements between the entities in Brazil and abroad are adjusted by contractual financial charges plus foreign exchange variation, when applicable. These contracts have an expiration date, with the possibility of extension of time by agreement between the parties. Sales and purchases of raw materials and products are made under terms and conditions contractually established between the parties.
Dividends and Interest on equity	2.14 — Dividends and Interest on equity The bylaws of Gerdau S.A. requires dividends of not less than 30% of the annual net income adjusted by 5% representing the constitution of legal reserve, and the constitution of tax incentives reserve; therefore, Gerdau S.A. records a liability at year-end for the minimum dividend amount that has not yet been paid during the year up to the limit of the mandatory minimum dividend described above.
Revenue Recognition	2.15 — Revenue Recognition Net sales are presented net of taxes and discounts. Revenues from sales of products are recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The related costs of freight are included in cost of sales.
Investments in Environmental Protection and Environmental liabilities	2.16 — Investments in Environmental Protection and Environmental liabilities Environmental costs that relate to current operations are expensed or capitalized as appropriate. Environmental costs that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation or cost reduction are recorded as expense. Liabilities are recorded when environmental assessments or remedial efforts are probable, and the cost can be reasonably estimated based on discussions with the environmental authorities and other assumptions significant to the nature and extent of the remediation that may be required. The ultimate cost to the Company is dependent upon factors beyond its control such as the scope and methodology of the remedial action requirements to be established by environmental and public health authorities, new laws or government regulations, rapidly changing technology and the outcome of any potential related litigation. Environmental liabilities are adjusted to present value when the aggregate amount of the obligation and the amount and timing of cash disbursements are established or can be reliably estimated.
Use of Judgements and Estimates	2.17 — Use of Judgements and Estimates The preparation of the Consolidated Financial Statements requires estimates to record certain assets, liabilities and other transactions. To make these estimates, Management uses the best information available on the date of preparation of the Consolidated Financial Statements and the experience of past and/or current events, also considering assumptions related to future events. As such, the Consolidated Financial Statements include estimates with respect to the recoverable amount of long-lived assets (Note 28), with respect to the need and the amount of provisions for tax, civil and labor liabilities (Note 19), recoverability of deferred tax assets (Note 8), estimates in selecting interest rates, return on assets, mortality tables and expectations for salary increases (Note 21), and long-term incentive plans through the selection of the evaluation model and rates (Note 26). Actual results could differ from those estimates.
Business Combinations for the Financial Statements	2.18 — Business Combinations for the Financial Statements a) Step-acquisitions in which control is obtained When a business combination is achieved in stages, the interest previously held by the Company in the acquired entity is remeasured at fair value at acquisition date (i.e. the date when the Company acquires the control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts related to the Company’s interest in the acquired company before the acquisition date, and that were recognized in “Other comprehensive income,” are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of. b) Acquisitions in which control is obtained initially Acquisitions of businesses are accounted for under the acquisition method. The cost of the acquisition is measured at the fair values (at the date of the transaction) of the assets transferred, liabilities incurred or assumed, and equity instruments issued by the Company in exchange for control of the acquired business entity. The acquiree’s identifiable assets, liabilities and contingent liabilities are recognized at their fair values at the acquisition date. The interest of non-controlling shareholders in the acquiree is initially measured at the non-controlling shareholders’ proportion of the net fair value of the assets, liabilities and contingent liabilities recognized. Expenses related to the acquisition are recognized in the income statement when incurred. c) Increases/decreases in non-controlling interests Subsequent increases/decreases in interest in subsidiaries, after the Company has obtained control, are treated as acquisitions/reductions of shares from non-controlling shareholders. The identifiable assets and liabilities of the acquired entity are not subject to a further revaluation and the positive or negative difference between the cost of such subsequent acquisitions/reductions and the net amount disbursed/received from the Company's proportional portion is recorded in equity. d) Loss of control of a subsidiary When control of a subsidiary is lost as a result of a transaction, event or other circumstance, the Company derecognizes all assets, liabilities and non-controlling interests at their carrying amount. Any retained interest in the former subsidiary is recognized at its fair value at the date that control is lost. This fair value is reflected in the calculation of the gain or loss on disposal attributable to the parent, and becomes the initial carrying amount for subsequent accounting for the retained interest.
Segment Information	2.19 — Segment Information The bodies responsible for making operational decisions, allocating resources and evaluating performance include the Board of Executive Officers and the Board of Directors. The information presented to the senior management with the respective performance of each segment is derived from the records kept in accordance with IFRS, with some reallocations between the segments. The Company’s segments are as follows: Brazil Operations (includes operations of steel and iron ore in Brazil, except Special Steel), North America Operations (includes all operations in North America, including the joint venture in Mexico, with the exception of Special Steel), South America Operations (includes all operations in South America, except Brazil and includes the Joint venture in Dominican Republic and Colombia) and Special Steel Operations (including special steel operations in Brazil and in the United States and the joint venture in Brazil).
Earnings per Share	2.20 — Earnings per Share The tables presented in Note 25 reconcile net income to the amounts used to calculate basic and diluted earnings per share. The Company has no instruments considered antidilutive that should be excluded from the calculation of diluted EPS. The calculation of basic EPS has been based on the profit attributable to shareholders and weighted-average number of shares outstanding. The calculation of diluted EPS has been based on the profit attributable to shareholders and weighted-average number of shares outstanding after adjustment for the effects of all dilutive potential shares.
Long-term incentive plans	2.21 — Long-term incentive plans The Company settles its Long-term incentive plans by delivering its own shares, which are held in treasury until the exercise of the options by the employees. Additionally, the Company granted the following long-term incentive plans: Restricted Shares and Performance Shares, as presented in Note 26.
Leasing Operations	2.22 — Leasing Operations The Company, as a lessee, recognizes a right-of-use asset that represents its right to use the leased asset and a lease liability that represents its obligation to make lease payments. Exemptions are available for short-term leases and low-value items. The Company recognizes new assets and liabilities for its operating leases. The Company recognizes a depreciation of rights of use assets and financial expense on lease obligations. Variable elements of payments related to leases (such as, for example, a lease for machinery and/or equipment with parts of payments based on the productivity of the asset) are not considered in the calculation of the liability, being recorded as operating expense. The discount rates used by the Company were obtained in accordance with market conditions.
New IFRS and Interpretations of the IFRIC (International Financial Reporting Interpretations Committee)	2.23 — New IFRS and Interpretations of the IFRIC (International Financial Reporting Interpretations Committee) The issued and/or reviewed IFRS standards made by the IASB that are effective for the year started in 2021 had no impact on the Company's Financial Statements. In addition, the IASB issued/reviewed some IFRS standards, which have mandatory adoption for the year 2022 and/or after, as presented below. - Amendment to IAS 1 - Classification of liabilities as Current or Non-current. It clarifies aspects to be considered for the classification of liabilities as Current Liabilities or Non-current Liabilities. This amendment to the standard is effective for fiscal years beginning on/or after January 1, 2023. The Company does not expect material impacts on its Financial Statements. - Annual improvements in IFRS 2018-2020 standards. It changes the IFRS 1, addressing aspects of first-time adoption in a subsidiary; IFRS 9, addressing the 10% test criterion for reversing financial liabilities; IFRS 16, covering illustrative examples of leasing and IAS 41, covering aspects of measurement at fair value. These changes are effective for fiscal years beginning on/or after January 1, 2022. The Company does not expect material impacts on its Financial Statements. - Amendment to IAS 16 - Property, plant and equipment: Result generated before reaching the expected conditions of use. It clarifies aspects to be considered for the classification of items produced before the asset is in the projected conditions of use. This amendment to the standard is effective for fiscal years beginning on/or after January 1, 2022. The Company does not expect material impacts on its Financial Statements. - Amendment to IAS 37 - Onerous contract: Cost of fulfilling a contract. It clarifies aspects to be considered for the classification of costs related to the fulfillment of an onerous contract. This amendment to the standard is effective for fiscal years beginning on/or after January 1, 2022. The Company does not expect material impacts on its Financial Statements. - Amendment to IFRS 3 - References to conceptual framework. It clarifies conceptual alignments of this standard with the IFRS conceptual framework. This amendment to the standard is effective for fiscal years beginning on/or after January 1, 2022. The Company does not expect material impacts on its Financial Statements. -Amendment to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies. It clarifies aspects to be considered in the disclosure of accounting policies. This amendment to the standard is effective for fiscal years beginning on/or after January 1, 2023. The Company does not expect material impacts on its Financial Statements. -Amendment to IAS 8 – Definition of Accounting Estimates. It clarifies aspects to be considered in the definition of accounting estimates. This amendment to the standard is effective for fiscal years beginning on/or after January 1, 2023. The Company does not expect material impacts on its Financial Statements. - Amendment to IFRS 16 - Leases. It clarifies aspects to be considered in rent concessions that have a direct relation with Covid-19 pandemic. This amendment to the standard is effective for fiscal years beginning on/or after April 1, 2021. The Company does not expect material impacts on its Financial Statements. - Amendment to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction. It clarifies aspects to be considered when recognizing deferred tax assets and liabilities related to taxable temporary differences and deductible temporary differences. This amendment to the standard is effective for fiscal years beginning on/or after January 1, 2023. The Company does not expect material impacts on its Financial Statements.
Risk of disease outbreaks and health pandemic: Covid-19	2.24 - Risk of disease outbreaks and health pandemic: Covid-19 The Covid-19 pandemic continues to impact global economic activity and represents the risk that the Company, employees, service providers, suppliers, customers and other business partners may be prevented from carrying out certain business activities for an indefinite period, including due to stoppages that can be requested or mandated by government authorities or elected by companies as a preventive measure. The Covid-19 pandemic may have an adverse effect on business and, given the uncertainty as to the extent and timing of a possible spread or its future mitigation and the imposition or relaxation of protective measures, it is not possible to reasonably estimate the impact on future results of operations, cash flows or the future financial condition of the Company. The demand for steel products is directly linked to the general economic activity in the international markets where the Company sells these products. A decline in the level of activity in the domestic or international markets in which the Company operates, as a consequence of the Covid-19 pandemic and measures to contain it, may adversely affect the demand and the price of these products and have a significant effect. The Company is following all Covid-19 prevention guidelines issued by the competent health agencies in the countries in which it operates. For this reason, the Company has adopted a series of measures to mitigate the risk of transmission in the workplace, such as using home office, creating crisis committees, canceling national and international trips and participation in external events. The Company also reinforces that the health and safety of people are non-negotiable values. The Company has monitored the evolution of the pandemic scenario and the impacts that this situation brings to the routines of employees, their families and, also, to the business. The nature of our business is complex and, in order to continue operating, much of our work cannot be done remotely. Therefore, our focus is to reduce the risk of the virus spreading through our operations, as operational continuity is essential for jobs, for neighboring communities and for the economies of the countries and regions where we operate. Our mills and offices, therefore, have contingency plans to deal with the ongoing impact of the pandemic, which will continue to be reviewed as the situation evolves. 2.24.1 Main associated risks a) Risk of impairment losses - Goodwill and Other Long-lived Assets The recoverability of goodwill and other long-lived assets is assessed based on the analysis and identification of facts or circumstances that may cause the need to perform the recoverability test. The Company carried out impairment tests on goodwill and other long-lived assets, which results are presented in Note 28. b) Liquidity risk and the Company's ability to meet its financial obligations The long-term portion of loans and financing (Note 15) and debentures (Note 16) has its most significant maturities as from 2026. In addition, the Company's management constantly monitors liquidity risk through the management of its cash and cash equivalents and financial investments (Note 4) and the availability of credit lines and guaranteed accounts that allow it to manage its level of indebtedness (Note 15). c) Risk of losses due to the non-recoverability of financial assets The losses due to the non-recoverability of financial assets were calculated based on the credit risk analysis, which includes historical losses, the individual situation of the clients, the situation of the economic group to which they belong, the real guarantees for debts and the assessment of management with input from legal advisors, and is considered sufficient to cover possible losses on the amounts receivable, in addition to a prospective assessment that takes into account the change or expected change in economic factors that affect expected credit losses, which are determined based on in weighted and measured probabilities in an amount equal to the expected credit loss for life. The maximum exposure to the Company's credit risk, net of losses due to the non-recoverability of financial assets, is the value of accounts receivable. The credit quality of accounts receivable falling due is considered adequate, and the amount of the effective risk of possible losses in accounts receivable from customers is presented as losses due to the non-recoverability of financial assets. The Company will continue, throughout 2022, our constant monitoring of the market in order to identify any deterioration, especially as a result of the Covid-19 pandemic, a significant drop in demand from the steel consuming sectors (notably automotive and construction), significant changes in the economy or financial market that lead to an increase in the perception of credit risk on accounts receivable from customers. Eventual changes that deteriorate the economic and business environment, if manifested at a greater intensity than anticipated in the scenarios contemplated by Management, may result in losses due to the non-recoverability of financial assets, notably accounts receivable from customers. d) Risk of losses based on the net realizable value in inventories Inventories are valued based on the lowest value between the historical cost of acquisition and production and the net realizable value. The acquisition and production cost is increased by expenses related to transport, storage and non-recoverable taxes. The net realizable value is the estimated sale price in the normal course of business, less estimated costs for completion and directly related selling expenses. Information regarding the breakdown of the net realizable value is shown in Note 6. The Company used the estimated sale price in the normal course of business as a premise of the net realizable value, therefore, a decline in the level of activity in the domestic or international markets in which the Company operates. e) Risk on recoverability analysis of deferred tax assets In December 2021, the Company prepared analysis on the recoverability of deferred tax balances related to tax losses and negative social contribution base, which were approved by the Board of Directors and are based on its business plans and in line with the other projections used by the Company as, for example, in asset impairment tests. Eventual changes that deteriorate the economic and business environment, especially as a result of the Covid-19 pandemic, if manifested in a greater intensity than anticipated in the scenarios contemplated by the Management, may lead the Company to review its projections and, eventually, may affect the maintenance of deferred tax assets in the Company's Financial Statements. f) Continuity risk The risks arising from disease outbreaks and health epidemics, notably those arising from the Covid-19 pandemic, can contribute significantly to the deterioration of economic conditions in Brazil and globally and could, among other consequences, (i) negatively impact further global demand for steel or even lower market prices for products, which may result in a continued reduction in the Company's sales, operating income and cash flows; (ii) making it more difficult or costly to obtain financing for operations or refinance debt in the future; (iii) impair the financial condition of some of the customers and suppliers; and (iv) reduce investment programs. The Company constantly monitors the risks of commodity prices, interest rates and exchange rates, credit risk management and capital management (Note 17.c). The Company believes that it has no evidence of any risk of operational continuity, however, changes that deteriorate the economic and business environment, or significant changes in the economy or financial market that result in increased risk perception or reduced liquidity and capacity to refinancing, if manifested at a greater intensity than anticipated in the scenarios contemplated by Management, may lead the Company to revise its projections and, eventually, may affect the Company's ability to meet its obligations and / or lead to the recognition of impairment of assets.

CONSOLIDATED FINANCIAL STATEM_2

CONSOLIDATED FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2021
CONSOLIDATED FINANCIAL STATEMENTS
Schedule of significant consolidated subsidiaries	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Interests Consolidated company Country ​ Total capital (*) ​ ​ ​ 2021 2020 2019 Gerdau GTL Spain S.L. Spain 100.00 100.00 100.00 Gerdau Internacional Empreendimentos Ltda. - Grupo Gerdau Brazil 100.00 100.00 100.00 Gerdau Ameristeel Corporation and subsidiaries (1) USA/Canada 100.00 100.00 100.00 Gerdau Açominas S.A. Brazil 99.86 99.86 99.83 Gerdau Aços Longos S.A. and subsidiaries (2) Brazil 99.83 99.82 99.82 Gerdau Steel Inc. Canada 100.00 100.00 100.00 Gerdau Holdings Inc. and subsidiary (3) USA 100.00 100.00 100.00 Paraopeba - Fixed-income investment fund (4) (**) Brazil 70.62 89.26 96.96 Gerdau Hungria Holdings Limited Liability Company Hungary 100.00 100.00 100.00 GTL Equity Investments Corp. British Virgin Islands 100.00 100.00 100.00 Empresa Siderúrgica del Perú S.A.A. - Siderperú Peru 90.03 90.03 90.03 Gerdau GTL México, S.A. de C.V. and subsidiary (5) Mexico 100.00 100.00 100.00 Seiva S.A. - Florestas e Indústrias Brazil 97.73 97.73 97.73 Gerdau Laisa S.A. Uruguai 100.00 100.00 100.00 Sipar Gerdau Inversiones S.A. Argentina 99.99 99.99 99.99 Sipar Aceros S.A. and subsidiary (6) Argentina 99.98 99.98 99.98 Sizuca - Siderúrgica Zuliana, C. A. Venezuela 100.00 100.00 100.00 GTL Trade Finance Inc. British Virgin Islands 100.00 100.00 100.00 Gerdau Trade Inc. British Virgin Islands 100.00 100.00 100.00 Gerdau Next S.A. and subsidiaries (7) ​ Brazil ​ 100.00 ​ — ​ — (*) The voting capital is substantially equal to the total capital. The interests reported represent the ownership percentage held directly and indirectly in the subsidiary. (**) The percentage of participation including interest of the parent company Metalúrgica Gerdau S.A. in the investment fund is 73.54% in 2021, 92.58% in 2020 and 98.07% in 2019 . (1) Subsidiaries: Gerdau Ameristeel US Inc., Chaparral Steel Company. (2) Subsidiaries: Gerdau Açominas Overseas Ltd. and Siderúrgica Latino-Americana S.A. (3) Subsidiary: Gerdau MacSteel Inc. (4) Fixed-income investment fund managed by Bank JP Morgan S.A. (5) Subsidiary: GTL Servicios Administrativos México, S.A. de C.V. (6) Subsidiary: Siderco S.A. (7) Subsidiaries: G2L Logística Ltda, G2base Fundações e Contenções Ltda and Gerdau Grafeno Ltda.
Schedule of interests in joint ventures	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Interests ​ ​ ​ ​ Total capital (*) Joint ventures Country 2021 2020 2019 Bradley Steel Processors Canada 50.00 50.00 50.00 MRM Guide Rail Canada 50.00 50.00 50.00 Gerdau Corsa S.A.P.I. de CV Mexico 75.00 70.00 70.00 Gerdau Metaldom Corp. Dominican Rep. 50.00 50.00 50.00 Gerdau Summit Aços Fundidos e Forjados S.A. ​ Brazil ​ 58.73 ​ 58.73 ​ 58.73 Diaco S.A. ​ Colombia ​ 49.87 ​ 49.87 ​ 49.87 Juntos Somos Mais Fidelização S.A. ​ Brazil ​ 27.50 ​ 27.50 ​ 27.50 (*) The voting capital is substantially equal to the total capital. The interests reported represent the ownership percentage held directly and indirectly held in the joint venture.
Schedule of summarized financial information of the joint ventures	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Joint ventures ​ 2021 2020 2019 Net income (loss) 959,116 249,158 ​ (21,548) Total comprehensive income (loss) 959,116 249,158 ​ (21,548)
Schedule of interests in associate companies	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity interests ​ ​ ​ ​ Total capital (*) Associate company Country 2021 2020 2019 Dona Francisca Energética S.A. Brazil 51.82 51.82 51.82 (*) The voting capital is substantially equal to the total capital. The interests reported represent the ownership percentage held directly and indirectly.
Schedule of summarized financial information of the associate companies	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Associate company ​ 2021 2020 2019 Net income 37,231 42,008 ​ 31,249 Total comprehensive income 37,231 42,008 ​ 31,249
Schedule of fair value assessment of assets and liabilities and total purchase price paid for business combination	The Company concluded the fair value assessment of the assets and liabilities of Silat and the following table summarizes the fair value of such assets and liabilities at the date of business combination: ​ ​ ​ ​ ​ ​ ​ ​ Book Value Acquisition Adjustments Fair value upon acquisition ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ 33,419 ​ — ​ 33,419 Trade accounts receivable - net ​ 13,190 ​ — ​ 13,190 Inventories ​ 24,160 ​ — ​ 24,160 Other current assets ​ 11,091 ​ — ​ 11,091 Property, plant and equipment ​ 233,541 ​ 253,216 ​ 486,757 Other non-current assets ​ 34,410 ​ — ​ 34,410 Current liabilities ​ (26,638) ​ — ​ (26,638) Non-current liabilities ​ (359) ​ (86,093) ​ (86,452) Non-controlling interest ​ (5,395) ​ (6,100) ​ (11,495) Assets (Liabilities) ​ 317,419 ​ 161,023 ​ 478,442 Negative Goodwill ​ — ​ (2,481) ​ (2,481) Net assets ​ 317,419 ​ 158,542 ​ 475,961 3.6 - Total purchase price considered for the 2020 acquisition ​ ​ ​ ​ Subsidiary acquired 2020 Siderúrgica Latino-Americana S.A. 475,961 Total consideration paid 475,961 Less: Cash and cash equivalents of acquired subsidiary (33,419) ​ 442,542

CASH AND CASH EQUIVALENTS, AN_2

CASH AND CASH EQUIVALENTS, AND SHORT AND LONG-TERM INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2021
CASH AND CASH EQUIVALENTS, AND SHORT AND LONG-TERM INVESTMENTS
Schedule of cash and cash equivalents and investments	​ ​ ​ ​ ​ ​ ​ 2021 2020 Cash 14,667 9,060 Banks and immediately available investments 4,145,987 4,608,144 Cash and cash equivalents 4,160,654 4,617,204 ​ Immediately available investments include investments with maturity up to 90 days at the time of acquisition, immediate liquidity and low risk of fair value variation. ​ ​ ​ ​ ​ ​ 2021 2020 Short-term investments 2,626,212 3,041,143

TRADE ACCOUNTS RECEIVABLE (Tabl

TRADE ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2021
TRADE ACCOUNTS RECEIVABLE.
Schedule of trade accounts receivable	​ ​ ​ ​ ​ ​ ​ 2021 2020 Trade accounts receivable - in Brazil 2,640,011 2,081,740 Trade accounts receivable - exports from Brazil 249,834 26,121 Trade accounts receivable - outside of Brazil 2,632,002 1,766,555 (-) Impairment loss on trade receivables (107,772) (137,146) ​ 5,414,075 3,737,270
Schedule of accounts receivable by aging	​ ​ ​ ​ ​ ​ ​ 2021 2020 Current 4,646,175 3,466,000 Past-due: Up to 30 days 494,866 259,756 From 31 to 60 days 139,415 48,905 From 61 to 90 days 32,245 9,355 From 91 to 180 days 169,959 13,636 From 181 to 360 days 8,220 15,899 Above 360 days 30,967 60,865 (-) Impairment on financial assets (107,772) (137,146) ​ 5,414,075 3,737,270
Schedule of the changes in impairment on financial assets	​ ​ ​ ​ Balance as of January 1, 2019 (158,157) Impairment on financial assets during the year (81,243) Recoveries in the year 60,199 Write-offs 78,635 Exchange variation ​ 2,487 Balance as of December 31, 2019 (98,079) Impairment on financial assets during the year (148,548) Recoveries in the year 84,416 Write-offs 36,210 Exchange variation ​ (11,145) Balance as of December 31, 2020 (137,146) Impairment on financial assets during the year (55,731) Recoveries in the year 56,088 Write-offs ​ 9,892 Loss of control of subsidiary (note 3.4) ​ 23,203 Exchange variation ​ (4,078) Balance as of December 31, 2021 (107,772)

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2021
INVENTORIES
Schedule of inventories	​ ​ ​ ​ ​ ​ ​ 2021 2020 Finished products 7,209,379 3,894,698 Work in progress 3,453,948 2,045,158 Raw materials 3,994,655 1,934,958 Storeroom supplies 1,061,666 786,401 Imports in transit 1,145,215 514,321 (-) Allowance for adjustments to net realizable value (3,375) (6,119) ​ 16,861,488 9,169,417
Schedule of the changes in the allowance for adjustment to net realizable value of inventories	​ ​ ​ ​ Balance as of January 1, 2019 (13,704) Provision for the year (46,693) Reversal of adjustments to net realizable value 22,028 Exchange rate variation (939) Balance as of December 31, 2019 (39,308) Provision for the year (6,562) Reversal of adjustments to net realizable value 47,259 Exchange rate variation (7,508) Balance as of December 31, 2020 (6,119) Provision for the year (6,331) Reversal of adjustments to net realizable value 9,143 Exchange rate variation (68) Balance as of December 31, 2021 (3,375)

TAX CREDITS (Tables)

TAX CREDITS (Tables)	12 Months Ended
	Dec. 31, 2021
TAX CREDITS.
Schedule of current and non-current tax credits	​ ​ ​ ​ ​ ​ ​ 2021 2020 Current ICMS (state VAT) 155,373 297,926 Social security financing 1,456,593 632,927 Financing of social integration program 226,477 171,724 IPI (federal VAT) 67,166 38,174 IVA (value-added tax) 126,281 24,500 Others 51,995 36,061 ​ 2,083,885 1,201,312 ​ ​ ​ ​ ​ Non-current ICMS (state VAT) 85,512 64,163 Social security financing 238 441,111 Financing of social integration program and Others 38,850 158,771 ​ 124,600 664,045 ​ 2,208,485 1,865,357
Schedule of estimates of realization of non-current tax credits	​ ​ ​ ​ ​ ​ ​ 2021 2020 2022 — 584,145 2023 64,426 22,433 2024 ​ 40,853 ​ 8,054 2025 ​ 11,660 ​ 49,413 2026 on 7,661 — ​ 124,600 664,045

INCOME AND SOCIAL CONTRIBUTIO_2

INCOME AND SOCIAL CONTRIBUTION TAXES (Tables)	12 Months Ended
	Dec. 31, 2021
INCOME AND SOCIAL CONTRIBUTION TAXES
Schedule of reconciliations of income and social contribution taxes at statutory rates to amounts presented in the Statement Of Income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Income (loss) before income taxes 20,272,568 3,495,678 1,674,720 ​ Statutory tax rates 34 % 34 % 34 % Income and social contribution taxes at statutory rates (6,892,673) (1,188,531) (569,405) ​ Tax adjustment with respect to: ​ - Difference in tax rates in foreign companies 403,431 530,715 75,428 ​ - Equity in earnings of unconsolidated companies 191,474 51,873 (5,797) ​ - Interest on equity* 406,022 98,739 69 ​ - Interests on tax lawsuits** ​ 551,624 ​ — ​ — ​ - Tax credits and incentives 112,521 31,800 8,852 ​ - Deferred tax assets not recognized / Realization, net ​ 482,497 ​ (587,917) ​ 1,097 ​ - Other permanent differences, net 31,474 (44,303) 31,923 ​ Income and social contribution taxes (4,713,630) (1,107,624) (457,833) ​ Current (4,306,223) (908,051) (240,400) ​ Deferred (407,407) (199,573) (217,433) ​ * Brazilian Law 9,249/95 provides that a company may, at its sole discretion, consider dividends distributions to shareholders to be considered as interest on own capital — subject to specific limitations - which has the effect of a taxable deduction in the determination of income tax and social contribution. The limitation is the greater of (i) shareholders’ equity multiplied by the TJLP (Long-Term Interest Rate) rate or (ii) 50% of the net income in the fiscal year. This expense is not recognized for the purpose of preparing the financial statements and therefore does not impact net income. **
Schedule of breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of ​ Recognized in ​ ​ ​ Comprehensive ​ Balance as of ​ December 31, 2020 income Others Income December 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax loss carryforward ​ 1,220,485 ​ (556,480) ​ (24,312) ​ 10,156 ​ 649,849 Social contribution tax losses ​ 290,276 ​ (187,814) ​ 20,625 ​ — ​ 123,087 Provision for tax, civil and labor liabilities ​ 385,463 ​ 37,256 ​ — ​ 33 ​ 422,752 Benefits granted to employees ​ 392,257 ​ (35,812) ​ — ​ (57,828) ​ 298,617 Other temporary differences ​ 501,114 ​ (144,352) ​ — ​ 2,312 ​ 359,074 Deferred exchange variance* ​ 1,057,541 ​ 511,763 ​ — ​ 7 ​ 1,569,311 Provision for losses ​ 35,520 ​ 6,576 ​ — ​ (5,832) ​ 36,264 Fair value adjustments on businesses acquired ​ (550,864) ​ (38,544) ​ — ​ (39,213) ​ (628,621) ​ ​ 3,331,792 ​ (407,407) ​ (3,687) ​ (90,365) ​ 2,830,333 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets ​ 3,393,354 ​ ​ ​ ​ ​ ​ 2,929,308 Non-current liabilities ​ (61,562) ​ ​ ​ ​ ​ ​ (98,975) * Corresponds to deferred taxes over foreign exchange gains and loss which certain subsidiaries elected to tax on a cash basis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of ​ Recognized in ​ Acquisition of ​ Comprehensive ​ Balance as of ​ December 31, 2019 income subsidiary Income December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax loss carryforward ​ 1,341,464 ​ (157,207) ​ — ​ 36,228 ​ 1,220,485 Social contribution tax losses ​ 350,810 ​ (60,534) ​ — ​ — ​ 290,276 Provision for tax, civil and labor liabilities ​ 242,794 ​ 140,871 ​ — ​ 1,798 ​ 385,463 Benefits granted to employees ​ 294,031 ​ (6,848) ​ — ​ 105,074 ​ 392,257 Other temporary differences ​ 575,719 ​ (114,627) ​ — ​ 40,022 ​ 501,114 Deferred exchange variance* ​ 1,177,428 ​ (119,178) ​ — ​ (709) ​ 1,057,541 Provision for losses ​ 23,618 ​ 11,740 ​ — ​ 162 ​ 35,520 Fair value adjustments on businesses acquired ​ (452,058) ​ 106,210 ​ (86,093) ​ (118,923) ​ (550,864) ​ ​ 3,553,806 ​ (199,573) ​ (86,093) ​ 63,652 ​ 3,331,792 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets ​ 4,071,219 ​ ​ ​ ​ 3,393,354 Non-current liabilities ​ (517,413) ​ ​ ​ ​ (61,562) * Corresponds to deferred taxes over foreign exchange gains and loss which certain subsidiaries elected to tax on a cash basis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of ​ Recognized in ​ ​ ​ Comprehensive ​ Balance as of ​ January 1, 2019 income Others Income December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax loss carryforward ​ 1,339,933 ​ 4,781 ​ (36,226) ​ 32,976 ​ 1,341,464 Social contribution tax losses ​ 337,258 ​ 13,552 ​ — ​ — ​ 350,810 Provision for tax, civil and labor liabilities ​ 270,417 ​ (27,848) ​ — ​ 225 ​ 242,794 Benefits granted to employees ​ 286,494 ​ (29,739) ​ — ​ 37,276 ​ 294,031 Other temporary differences ​ 525,818 ​ 73,067 ​ — ​ (23,166) ​ 575,719 Deferred exchange variance* ​ 1,284,377 ​ (106,640) ​ — ​ (309) ​ 1,177,428 Provision for losses ​ 83,837 ​ (75,142) ​ — ​ 14,923 ​ 23,618 Fair value adjustments on businesses acquired ​ (372,448) ​ (69,464) ​ — ​ (10,146) ​ (452,058) ​ ​ 3,755,686 ​ (217,433) ​ (36,226) ​ 51,779 ​ 3,553,806 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets ​ 3,874,054 ​ ​ ​ ​ ​ ​ ​ 4,071,219 Non-current liabilities ​ (118,368) ​ ​ ​ ​ ​ ​ ​ (517,413) * Corresponds to deferred taxes over foreign exchange gains and loss which certain subsidiaries elected to tax on a cash basis

INVESTMENTS IN ASSOCIATES AND_2

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Tables)	12 Months Ended
	Dec. 31, 2021
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Summary of investments in associates and joint ventures	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in ​ Investments in ​ Investments in ​ ​ ​ ​ ​ ​ North America South America Special Steel ​ Others Total Balance as of January 1, 2019 301,272 ​ 701,233 ​ 213,899 ​ ​ 151,398 ​ 1,367,802 Equity in earnings ​ (111,637) ​ 66,468 ​ 6,779 ​ ​ 21,340 ​ (17,050) Other comprehensive income 28,182 ​ 21,282 ​ 3,523 ​ ​ 2,051 ​ 55,038 Capital increase 463,990 ​ — ​ — ​ ​ 7,000 ​ 470,990 Capital reduction ​ — ​ (20,344) ​ ​ ​ ​ ​ ​ (20,344) Dividends/Interest on equity — ​ (20,247) ​ — ​ ​ (23,790) ​ (44,037) Balance as of December 31, 2019 681,807 ​ 748,392 ​ 224,201 ​ ​ 157,999 ​ 1,812,399 Equity in earnings ​ 23,494 ​ 99,913 ​ 8,900 ​ ​ 20,262 ​ 152,569 Other comprehensive income 165,479 ​ 195,286 ​ (1,949) ​ ​ — ​ 358,816 Capital increase 42,782 ​ - ​ — ​ ​ — ​ 42,782 Dividends/Interest on equity (5,223) ​ (67,546) ​ — ​ ​ (22,168) ​ (94,937) Balance as of December 31, 2020 908,339 ​ 976,045 ​ 231,152 ​ ​ 156,093 ​ 2,271,629 Equity in earnings ​ 279,948 ​ 268,291 ​ 28,831 ​ ​ (13,912) ​ 563,158 Other comprehensive income 173,934 ​ 52,278 ​ 710 ​ ​ (1,415) ​ 225,507 Capital increase — ​ — ​ — ​ ​ 27,500 ​ 27,500 Capital decrease ​ — ​ (141,095) ​ — ​ ​ — ​ (141,095) Results in operations with subsidiary and joint ventures (note 3.4) ​ 511,514 ​ — ​ — ​ ​ — ​ 511,514 Dividends/Interest on equity (2,460) ​ (84,186) ​ (9,025) ​ ​ (21,767) ​ (117,438) Balance as of December 31, 2021 1,871,275 ​ 1,071,333 ​ 251,668 ​ ​ 146,499 ​ 3,340,775

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2021
PROPERTY, PLANT AND EQUIPMENT.
Summary of changes in property, plant and equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and ​ ​ Land and ​ Machines, equipment, ​ Data electronic ​ equipment under ​ ​ ​ ​ Cost of the property, plant, and equipment ​ buildings ​ and installations ​ equipment ​ construction ​ Other ​ Total Balances as of January 1, 2019 8,700,749 29,608,998 753,078 1,021,247 988,114 41,072,186 Additions 28,449 76,756 13,955 1,506,343 121,097 1,746,600 Capitalized interest — — — 24,676 — 24,676 Transfers 115,452 884,161 24,037 (1,038,693) 15,043 — Disposals (54,699) (165,139) (1,890) (40,314) (105,643) (367,685) Foreign exchange effect 122,992 626,432 13,369 42,470 10,797 816,060 Balances as of December 31, 2019 8,912,943 31,031,208 802,549 1,515,729 1,029,408 43,291,837 Additions 50,848 98,372 9,765 1,369,947 121,846 1,650,778 Capitalized interest — — — 24,622 — 24,622 Transfers 207,551 695,512 13,653 (939,231) 22,515 — Disposals (226,920) (505,580) (11,487) — (144,153) (888,140) Business Combination ​ 275,076 ​ 173,453 ​ 29 ​ 36,563 ​ 1,636 ​ 486,757 Impairment of non-financial assets ​ (198,196) ​ (213,729) ​ — ​ — ​ — ​ (411,925) Foreign exchange effect 918,554 3,621,233 107,634 246,575 47,285 4,941,281 Balances as of December 31, 2020 9,939,856 34,900,469 922,143 2,254,205 1,078,537 49,095,210 Additions 20,661 159,387 21,595 2,649,417 174,963 3,026,023 Capitalized interest — — — 32,876 — 32,876 Transfers 224,789 1,125,706 48,827 (1,405,597) 6,275 — Disposals (41,475) (383,593) (2,982) (19,462) (87,574) (535,086) Loss of control of subsidiary (note 3.4) ​ (168,222) ​ (414,955) ​ (2,545) ​ (7,143) ​ (5,367) ​ (598,232) Foreign exchange effect 245,005 1,476,437 32,978 116,633 18,088 1,889,141 Balances as of December 31, 2021 10,220,614 36,863,451 1,020,016 3,620,929 1,184,922 52,909,932 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and ​ ​ ​ Land and ​ Machines, equipment, ​ Data electronic ​ equipment under ​ ​ ​ ​ Accumulated depreciation ​ buildings ​ and installations ​ equipment ​ construction ​ Other ​ Total Balances as of January 1, 2019 (4,181,805) (20,366,821) (686,946) — (290,133) (25,525,705) Depreciation (295,615) (1,136,040) (33,143) — (112,384) (1,577,182) Transfers — (20) — — 20 — Disposals 38,826 145,019 1,818 — 105,272 290,935 Foreign exchange effect (74,868) (483,549) (12,151) — (7,824) (578,392) Balances as of December 31, 2019 (4,513,462) (21,841,411) (730,422) — (305,049) (27,390,344) Depreciation (413,252) (1,354,559) (37,616) — (100,210) (1,905,637) Disposals 223,174 497,434 11,169 — 128,833 860,610 Foreign exchange effect (440,999) (2,835,685) (100,806) — (29,434) (3,406,924) Balances as of December 31, 2020 (5,144,539) (25,534,221) (857,675) — (305,860) (31,842,295) Depreciation (383,122) (1,468,513) (41,973) — (163,803) (2,057,411) Transfers ​ 6,693 ​ (1,201) ​ — ​ — ​ (5,492) ​ — Disposals ​ 23,046 ​ 369,173 ​ 2,981 ​ — ​ 86,064 ​ 481,264 Loss of control of subsidiary (note 3.4) ​ 84,286 ​ 332,312 ​ 2,542 ​ — ​ 3,462 ​ 422,602 Foreign exchange effect (126,758) (1,006,607) (28,879) — (10,062) (1,172,306) Balances as of December 31, 2021 (5,540,394) ​ (27,309,057) ​ (923,004) ​ — ​ (395,691) ​ (34,168,146) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net property, plant and equipment ​ ​ ​ ​ ​ Balances as of December 31, 2019 4,399,481 9,189,797 72,127 1,515,729 724,359 15,901,493 Balances as of December 31, 2020 4,795,317 9,366,248 64,468 2,254,205 772,677 17,252,915 Balances as of December 31, 2021 4,680,220 9,554,394 97,012 3,620,929 789,231 18,741,786
Summary of useful lives of property, plant and equipment	​ ​ ​ ​ ​ Useful lives of ​ ​ property, ​ ​ plant and equipment Buildings 10 to 33 years Machines, equipment, and installations 10 to 20 years Furniture and fixture 5 to 10 years Vehicles 3 to 5 years Data electronic equipment 2.5 to 6 years

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2021
GOODWILL.
Summary of changes in goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated Goodwill after ​ ​ Goodwill ​ impairment losses ​ Impairment losses Balance as of January 1, 2019 16,783,958 (7,671,568) 9,112,390 (+/-) Foreign exchange effect 661,247 (304,326) 356,921 Balance as of December 31, 2019 17,445,205 (7,975,894) 9,469,311 (+/-) Foreign exchange effect 4,976,383 (2,342,175) 2,634,208 Balance as of December 31, 2020 22,421,588 (10,318,069) 12,103,519 (+/-) Foreign exchange effect 1,469,190 (595,284) 873,906 Results in operations with subsidiary and joint ventures (note 3.4) ​ (549,898) ​ — ​ (549,898) Balance as of December 31, 2021 23,340,880 (10,913,353) 12,427,527
Schedule of goodwill by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Brazil 373,135 373,135 373,135 Special Steel 4,111,619 3,828,841 2,969,752 North America 7,942,773 7,901,543 6,126,424 ​ 12,427,527 12,103,519 9,469,311

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2021
INTANGIBLE ASSETS
Summary of intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer ​ ​ ​ ​ Supplier ​ Software ​ contracts and ​ ​ ​ ​ ​ ​ relationships ​ development ​ relationships ​ Others ​ Total Balance as of January 01, 2019 26,719 415,640 387,299 6,438 836,096 Foreign exchange effect — 6,137 12,586 472 19,195 Acquisition — 100,313 — — 100,313 Amortization (5,304) (157,278) (116,462) (3,298) (282,342) Balance as of December 31, 2019 21,415 364,812 283,423 3,612 673,262 Foreign exchange effect — 42,890 83,806 1,074 127,770 Acquisition — 154,250 — — 154,250 Amortization (4,637) (188,083) (136,525) (3,459) (332,704) Balance as of December 31, 2020 16,778 373,869 230,704 1,227 622,578 Foreign exchange effect — 17,609 13,247 33 30,889 Acquisition — 166,310 — — 166,310 Amortization (4,055) (177,674) (127,028) (1,260) (310,017) Balance as of December 31, 2021 12,723 380,114 116,923 — 509,760 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated useful lives 5 to 20 years up to 5 years 5 to 20 years 5 years
Summary of intangible assets by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Brazil 207,053 220,303 238,243 Special Steel 130,719 156,557 132,934 South America 1,039 1,534 1,729 North America 170,949 244,184 300,356 ​ 509,760 622,578 673,262

LEASING (Tables)

LEASING (Tables)	12 Months Ended
	Dec. 31, 2021
LEASING
Summary of changes in the Right-of-use assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Machines, equipment, ​ Data electronic ​ ​ ​ ​ Right-of-use Cost Land and buildings and installations equipment Others Total Balances as of January 1, 2019 ​ 243,250 ​ 436,401 ​ 106,787 ​ 49,930 ​ 836,368 Additions 14,062 117,653 742 11,064 143,521 Disposals (10,493) (22,993) (162) (1,907) (35,555) Remeasurements 33,322 (2,346) — 1,236 32,212 Foreign exchange effect 3,853 4,571 46 2,119 10,589 Balances as of December 31, 2019 283,994 533,286 107,413 62,442 987,135 Additions 5,670 185,116 175 43,862 234,823 Disposals (14,583) (14,846) — (1,176) (30,605) Remeasurements 111 (3,035) 12,548 69 9,693 Foreign exchange effect 26,748 37,809 340 15,747 80,644 Balances as of December 31, 2020 301,940 738,330 120,476 120,944 1,281,690 Additions 48,504 135,652 291 36,599 221,046 Disposals (5,621) (109,947) (151) (22,066) (137,785) Remeasurements 40,024 55,866 6,456 4,045 106,391 Loss of control of subsidiary (note 3.4) ​ — ​ (2,894) ​ (302) ​ — ​ (3,196) Foreign exchange effect 8,152 13,828 111 8,599 30,690 Balances as of December 31, 2021 392,999 830,835 126,881 148,121 1,498,836 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Machines, equipment, ​ Data electronic ​ ​ ​ ​ Accumulated depreciation Land and buildings and installations equipment Others Total Balances as of January 1, 2019 — ​ — — — — Depreciation (50,080) (127,399) (15,419) (21,873) (214,771) Disposals 1,330 4,250 32 976 6,588 Foreign exchange effect (733) (128) (9) (768) (1,638) Balances as of December 31, 2019 (49,483) (123,277) (15,396) (21,665) (209,821) Depreciation (51,451) (166,741) (15,459) (27,110) (260,761) Disposals 8,601 13,453 — 1,027 23,081 Foreign exchange effect (5,286) (8,091) (70) (5,431) (18,878) Balances as of December 31, 2020 (97,619) (284,656) (30,925) (53,179) (466,379) Depreciation (59,284) (186,300) (13,800) (31,750) (291,134) Disposals 3,668 108,532 97 21,334 133,631 Loss of control of subsidiary (note 3.4) ​ — ​ 1,860 ​ 230 ​ — ​ 2,090 Foreign exchange effect (3,574) (7,889) (45) (3,792) (15,300) Balances as of December 31, 2021 (156,809) (368,453) (44,443) (67,387) (637,092) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balances as of December 31, 2019 ​ 234,511 ​ 410,009 ​ 92,017 ​ 40,777 ​ 777,314 Balances as of December 31, 2020 ​ 204,321 ​ 453,674 ​ 89,551 ​ 67,765 ​ 815,311 Balances as of December 31, 2021 ​ 236,190 ​ 462,382 ​ 82,438 ​ 80,734 ​ 861,744 ​
Schedule of leasing payables	​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ 2020 2021 ​ — ​ 231,703 2022 ​ 275,086 ​ 193,314 2023 211,576 ​ 140,019 2024 127,718 ​ 90,812 2025 88,682 ​ 65,561 2026 on 215,303 ​ 135,065 ​ 918,365 ​ 856,474 ​ ​ ​ ​ ​ Leasing payable ​ ​ ​ ​ Current ​ 275,086 ​ 231,703 Non-current ​ 643,279 ​ 624,771 ​ ​ ​ ​ ​ Financial expense for the years ended on December 31, 2021 and 2020 ​ 68,789 ​ 61,727

TRADE ACCOUNTS PAYABLE (Tables)

TRADE ACCOUNTS PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2021
TRADE ACCOUNTS PAYABLE
Schedule of trade accounts payable	​ ​ ​ ​ ​ ​ ​ 2021 2020 Trade accounts payable - domestic market 5,230,270 3,941,924 Trade accounts payable - debtor risk 807,915 726,045 Trade accounts payable - intercompany 47,597 8,958 Trade accounts payable - imports 1,931,358 761,026 ​ 8,017,140 5,437,953

SHORT-TERM DEBT AND LONG-TERM_2

SHORT-TERM DEBT AND LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2021
SHORT-TERM DEBT AND LONG-TERM DEBT
Schedule of loans and financing	​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 Working capital ​ 480,905 1,178,557 Financing of property, plant and equipment and others ​ 102,232 333,797 Ten/Thirty Year Bonds ​ 10,526,649 13,100,580 Total Loans and Financing 11,109,786 14,612,934 Current 234,537 1,424,043 Non-current 10,875,249 13,188,891 ​ ​ ​ ​ ​ ​ Principal amount of loans and Financing 10,952,983 14,413,188 Interest accrued of loans and Financing 156,803 199,746 Total 11,109,786 14,612,934 (*) Weighted average effective interest costs on December 31, 2021, which represents total of 5.76%.
Schedule of loans and financing by currency	​ ​ ​ ​ ​ ​ ​ 2021 2020 Brazilian Real (BRL) 461,187 1,245,988 U.S. Dollar (USD) 10,535,532 13,366,946 Other currencies 113,067 — ​ 11,109,786 14,612,934
Schedule of amortization of long term loans and financing	​ ​ ​ ​ ​ ​ ​ 2021 2020 2022 — 5,210 2023 1,115,211 2,108,324 2024 878,044 1,813,225 2025 405,788 682,422 2026 on 8,476,206 8,579,710 ​ 10,875,249 13,188,891

DEBENTURES (Tables)

DEBENTURES (Tables)	12 Months Ended
	Dec. 31, 2021
DEBENTURES.
Schedule of debentures	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ General ​ Quantity as of December 31, 2021 ​ ​ ​ ​ ​ ​ Issuance Meeting Issued Held in treasury Maturity 2021 2020 14th ​ August 26, 2014 ​ 20,000 ​ 20,000 ​ August 30, 2024 ​ — ​ — 15th ​ November 09, 2018 ​ 1,500,000 ​ — ​ November 21, 2022 ​ 1,513,958 ​ 1,500,985 16th - A ​ April 25, 2019 ​ 600,000 ​ — ​ May 6, 2023 ​ 607,031 ​ 600,759 16th - B ​ April 25, 2019 ​ 800,000 ​ — ​ May 6, 2026 ​ 808,918 ​ 800,673 Total Consolidated 2,929,907 2,902,417 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,531,956 ​ 7,463 Non-current 1,397,951 2,894,954
Schedule of amortization of long term debentures	​ ​ ​ ​ ​ ​ ​ 2021 2020 2022 — 1,497,760 2023 ​ 599,390 ​ 598,960 2026 ​ 798,561 ​ 798,234 ​ 1,397,951 2,894,954

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2021
FINANCIAL INSTRUMENTS
Summary of fair value of financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ 2020 ​ Book Fair Book Fair ​ ​ value ​ value ​ value ​ value Assets Short-term investments 2,626,212 2,626,212 3,041,143 ​ 3,041,143 Related parties 2,678 2,678 134,354 ​ 134,354 Fair value of derivatives 3,246 3,246 — ​ — Other current assets 679,193 679,193 591,523 ​ 591,523 Other non-current assets 571,637 571,637 590,864 ​ 590,864 Liabilities ​ ​ ​ ​ ​ Loans and Financing 11,109,786 12,630,940 14,612,934 ​ 17,014,948 Debentures 2,929,907 2,911,424 2,902,417 ​ 2,775,619 Related parties ​ 24,648 ​ 24,648 ​ 22,855 ​ 22,855 Fair value of derivatives — — 971 ​ 971 Obligations with FIDC (current liabilities) 45,497 45,497 944,513 ​ 944,513 Other current liabilities 1,090,396 1,090,396 797,082 ​ 797,082 Obligations with FIDC (non-current liabilities) ​ — ​ — ​ 42,893 ​ 42,893 Other non-current liabilities 421,873 421,873 514,886 ​ 514,886
Summary of capital management risk	​ ​ ​ ​ Net debt/EBITDA From 1.0 to 1.5 times Gross debt limit ​ R$ 12 billion Average maturity ​ more than 6 years
Schedule of maturity of long-term loans and financing, and debentures	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 Contractual obligations Total Less than 1 year 1-3 years 4-5 years More than 5 years Trade accounts payable 8,017,140 ​ 8,017,140 ​ — ​ — ​ — Loans and financing 17,885,671 ​ 851,225 ​ 2,227,608 ​ 2,308,361 ​ 12,498,477 Debentures 3,492,689 ​ 1,802,373 ​ 780,537 ​ 111,218 ​ 798,561 Related parties ​ 24,648 ​ — ​ — ​ — ​ 24,648 Obligations with FIDC 45,497 ​ 45,497 ​ — ​ — ​ — Other current liabilities 1,090,396 1,090,396 — — — Other non-current liabilities 421,873 ​ — ​ 35,406 ​ — ​ 386,467 ​ 30,977,914 ​ 11,806,631 ​ 3,043,551 ​ 2,419,579 ​ 13,708,153 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 Contractual obligations Total Less than 1 year 1-3 years 4-5 years More than 5 years Trade accounts payable 5,437,953 ​ 5,437,953 ​ — ​ — ​ — Loans and financing 21,962,204 ​ 2,131,402 ​ 3,465,577 ​ 3,531,312 ​ 12,833,913 Debentures 3,077,960 ​ 66,145 ​ 2,174,184 ​ 32,604 ​ 805,027 Related parties ​ 22,855 ​ — ​ — ​ — ​ 22,855 Obligations with FIDC 987,406 ​ 944,513 ​ 42,893 ​ — ​ — Other current liabilities 797,082 797,082 — — — Other non-current liabilities 514,886 ​ — ​ 41,805 ​ — ​ 473,081 ​ 32,800,346 ​ 9,377,095 ​ 5,724,459 ​ 3,563,916 ​ 14,134,876
Schedule of sensitivity analysis of financial instrument	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assumptions Percentage of change 2021 2020 Foreign currency sensitivity analysis 5% 19,036 15,057 Interest rate sensitivity analysis 10 bps 55,964 85,147 Sensitivity analysis of changes in prices of products sold 1% 783,451 438,147 Sensitivity analysis of changes in raw material and commodity prices 1% 437,210 269,454 Currency forward contracts ​ 5% ​ — ​ 3,703 Commodity contracts ​ 5% ​ 4,892 ​ —
Schedule of financial instruments per category	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial asset at fair ​ ​ 2021 ​ Financial asset at ​ value through proft or ​ ​ Assets amortized cost loss Total Short-term investments — 2,626,212 ​ 2,626,212 Fair value of derivatives ​ 3,246 ​ — ​ ​ 3,246 Related parties 2,678 — ​ 2,678 Other current assets 679,193 — ​ 679,193 Other non-current assets 479,971 91,666 ​ 571,637 Total 1,165,088 2,717,878 ​ 3,882,966 Financial income (expenses) 1,226,743 210,988 ​ 1,437,731 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liability at fair ​ ​ ​ ​ ​ ​ value through profit or ​ Financial liability at ​ ​ Liabilities loss amortized cost Total Loans and financing — ​ 11,109,786 ​ 11,109,786 Debentures — ​ 2,929,907 ​ 2,929,907 Related parties — ​ 24,648 ​ 24,648 Obligations with FIDC (current liabilities) ​ — ​ 45,497 ​ 45,497 Other current liabilities — ​ 1,090,396 ​ 1,090,396 Other non-current liabilities ​ — ​ 421,873 ​ 421,873 Total — ​ 15,622,107 ​ 15,622,107 Financial income (expenses) (10,421) ​ (2,177,764) ​ (2,188,185) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial asset at fair ​ ​ ​ 2020 ​ Financial asset at ​ value through proft or ​ ​ ​ Assets ​ amortized cost ​ loss ​ Total Short-term investments — 3,041,143 ​ 3,041,143 Related parties 134,354 — ​ 134,354 Other current assets 591,523 — ​ 591,523 Other non-current assets 530,864 60,000 ​ 590,864 Total 1,256,741 3,101,143 ​ 4,357,884 Financial income (expenses) 487,631 109,396 ​ 597,027 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liability at fair ​ ​ ​ ​ ​ ​ value through profit or ​ Financial liability at ​ ​ Liabilities loss amortized cost Total Loans and financing — ​ 14,612,934 ​ 14,612,934 Debentures — ​ 2,902,417 ​ 2,902,417 Related parties ​ — ​ 22,855 ​ 22,855 Obligations with FIDC (current liabilities) — ​ 944,513 ​ 944,513 Other current liabilities — ​ 797,082 ​ 797,082 Obligations with FIDC (non-current liabilities) ​ — ​ 42,893 ​ 42,893 Other non-current liabilities — ​ 514,886 ​ 514,886 Fair value of derivatives 971 ​ — ​ 971 Total 971 ​ 19,837,580 ​ 19,838,551 Financial income (expenses) (1,632) ​ (2,294,102) ​ (2,295,734)
Summary of derivative instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notional value ​ Amount receivable ​ Amount payable Contracts ​ Position ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ 2021 ​ 2020 Swap of interest rate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Maturity in 2022 ​ buyed in US$ ​ US$ 5.3 milion ​ US$ 9.9 milion ​ 3,246 ​ — ​ — ​ (971) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fair value of financial instruments ​ ​ ​ ​ ​ ​ ​ 3,246 ​ — ​ — ​ (971)
Summary of effectiveness testing of derivative financial instruments	​ ​ ​ ​ ​ ​ Fair value of derivatives 2021 2020 Current assets 3,246 — ​ ​ 3,246 ​ — Fair value of derivatives ​ ​ ​ ​ Current liabilities ​ — ​ 971 ​ — 971 ​ ​ ​ ​ ​ ​ ​ 2021 2020 Net Income Gains on financial instruments 28,349 858 Losses on financial instruments (10,421) (1,632) ​ 17,928 (774) Other comprehensive income Gains (Losses) on financial instruments 1,907 (1,972) ​ 1,907 (1,972)
Schedule of financial assets and liabilities measures at fair value on recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at Reporting Date Using ​ ​ ​ ​ ​ ​ Quoted Prices in Non-Active ​ ​ ​ ​ ​ ​ Markets for Similar Assets ​ ​ Balance per financial statements ​ (Level 2) ​ 2021 2020 2021 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current assets Short-term investments 2,626,212 3,041,143 2,626,212 3,041,143 Fair value of derivatives 3,246 — 3,246 — Other current assets 679,193 591,523 679,193 591,523 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets Related parties 2,678 134,354 2,678 134,354 Other non-current assets 571,637 590,864 571,637 590,864 ​ 3,882,966 4,357,884 3,882,966 4,357,884 ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities Short-term debt 234,537 1,424,043 234,537 1,424,043 Debentures ​ 1,531,956 ​ 7,463 ​ 1,531,956 ​ 7,463 Fair value of derivatives — 971 — 971 Obligations with FIDC ​ 45,497 ​ 944,513 ​ 45,497 ​ 944,513 Other current liabilities 1,090,396 797,082 1,090,396 797,082 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current liabilities Long-term debt 10,875,249 13,188,891 10,875,249 13,188,891 Debentures 1,397,951 2,894,954 1,397,951 2,894,954 Related parties ​ 24,648 ​ 22,855 ​ 24,648 ​ 22,855 Obligations with FIDC — 42,893 — 42,893 Other non-current liabilities 421,873 514,886 421,873 514,886 ​ 15,622,107 19,838,551 15,622,107 19,838,551
Summary of changes in liabilities of cash flow from financing activities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash transactions ​ Non cash transactions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense on ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ loans and Interest on ​ ​ ​ ​ ​ ​ Balances as of ​ Proceeds/(Repayment) ​ Interest paid on ​ loans with related ​ Exchange variation ​ Balances as of ​ ​ January 01, 2019 ​ from financing activities ​ loans and financing ​ parties ​ and others ​ December 31, 2019 Related parties, net ​ (26,589) ​ (64,089) ​ — ​ (4,767) ​ — ​ (95,445) Leasing payable ​ 836,368 ​ (161,824) ​ (83,620) ​ 83,620 ​ 129,725 ​ 804,269 Debt, Debentures and Losses/Gains on financial instruments, net - Derivative instruments ​ 14,878,542 ​ 700,490 ​ (945,027) ​ 938,120 ​ 474,896 ​ 16,047,021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash transactions ​ Non cash transactions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense on ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ loans and Interest on ​ ​ ​ ​ ​ ​ Balances as of ​ Proceeds/(Repayment) ​ Interest paid on ​ loans with related ​ Exchange variation ​ Balances as of ​ ​ December 31, 2019 ​ from financing activities ​ loans and financing ​ parties ​ and others ​ December 31, 2020 Related parties, net ​ (95,445) ​ (7,777) ​ — ​ (8,277) ​ — ​ (111,499) Leasing payable ​ 804,269 ​ (247,914) ​ (61,727) ​ 61,727 ​ 300,119 ​ 856,474 Debt, Debentures and Losses/Gains on financial instruments, net - Derivative instruments ​ 16,047,021 ​ (1,963,283) ​ (1,079,981) ​ 1,022,460 ​ 3,490,105 ​ 17,516,322 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash transactions ​ Non cash transactions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense on ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ loans and Interest on ​ ​ ​ ​ ​ ​ Balances as of ​ Proceeds/(Repayment) ​ Interest paid on ​ loans with related ​ Exchange variation ​ Balances as of ​ ​ December 31, 2020 ​ from financing activities ​ loans and financing ​ parties ​ and others ​ December 31, 2021 Related parties, net ​ (111,499) ​ 139,556 ​ — ​ (6,089) ​ 2 ​ 21,970 Leasing payable ​ 856,474 ​ (275,944) ​ (68,699) ​ 68,699 ​ 337,835 ​ 918,365 Debt, Debentures and Losses/Gains on financial instruments, net - Derivative instruments ​ 17,516,322 ​ (4,506,918) ​ (1,100,826) ​ 1,059,841 ​ 1,068,028 ​ 14,036,447 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

TAXES PAYABLE (Tables)

TAXES PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2021
TAXES PAYABLE
Schedule of taxes payable	​ ​ ​ ​ ​ ​ ​ 2021 2020 Payroll charges 136,428 100,301 ICMS (state VAT) 92,320 99,430 COFINS (tax on revenue) 26,139 51,444 IPI (federal VAT) 41,474 38,153 IVA (value-added tax) and others 251,812 310,761 ​ 548,173 600,089

TAX, CIVIL AND LABOR CLAIMS A_2

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS (Tables)	12 Months Ended
	Dec. 31, 2021
TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS
Schedule of provisions for tax, civil and labor claims	​ ​ ​ ​ ​ ​ ​ 2021 2020 a) Tax provisions 1,270,473 ​ 706,104 b) Labor provisions 435,803 ​ 428,821 c) Civil provisions 34,750 ​ 37,586 ​ 1,741,026 ​ 1,172,511
Schedule of changes in the tax, labor and civil provisions	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Balance at the beginning of the year 1,172,511 809,299 ​ 770,305 (+) Additions 801,412 559,513 ​ 249,868 (+) Interests 42,435 104,473 ​ 70,788 (-) Reversal of accrued amounts (276,251) (304,678) ​ (282,239) (+) Foreign exchange effect on provisions in foreign currency 919 3,904 ​ 577 Balance at the end of the year 1,741,026 1,172,511 ​ 809,299
Schedule of judicial deposits related to tax, labor and civil lawsuits	​ ​ ​ ​ ​ ​ ​ 2021 2020 Tax 1,449,699 1,597,995 Labor 73,709 95,234 Civil 135,971 132,562 ​ 1,659,379 1,825,791

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2021
RELATED-PARTY TRANSACTIONS
Schedule of intercompany loans	​ ​ ​ ​ ​ ​ ​ ​ ​ Maturity 2021 2020 Assets ​ ​ Joint venture ​ ​ Gerdau Corsa SAPI de C.V. ​ ​ — 117,092 Others ​ ​ ​ ​ Fundação Gerdau December 31, 2022 ​ 2,678 17,262 ​ ​ ​ 2,678 134,354 Liabilities ​ ​ ​ ​ ​ ​ Joint venture ​ ​ ​ ​ ​ ​ Bradley Steel Processors Inc. ​ August 1, 2022 ​ (24,648) ​ (22,855) ​ ​ ​ ​ (24,648) ​ (22,855) ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Net financial income 6,089 8,277 4,767
Summary of guarantees granted	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Original ​ ​ ​ ​ ​ ​ ​ ​ Related Party Relationship Object Amount Maturity 2021 2020 2019 Gerdau Corsa S.A.P.I. de C.V. ​ Joint-venture ​ Financing Agreements ​ 4,905,367 ​ Oct/24 ​ 2,157,290 ​ 2,242,865 ​ 1,784,868 Gerdau Summit Aços Fundidos e Forjados S.A. ​ Joint-venture ​ Financing Agreements ​ 130,164 ​ Aug/25 ​ — ​ 30,125 ​ 37,285 Gerdau Metaldom S.A. e Gerdau Corsa S.A.P.I. de C.V ​ Joint-venture ​ Financing Agreements ​ 274,560 ​ Feb/20 ​ — ​ — ​ 241,842
Schedule of key management compensation	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Available at beginning of the year 6,456,248 6,717,872 ​ 6,375,547 Granted 709,990 ​ 733,218 ​ 1,083,116 Exercised (3,453,802) ​ (937,325) ​ (627,076) Cancelled ​ — ​ (64,112) ​ (38,553) Others ​ — ​ 6,595 ​ (75,162) Available at the end of the year 3,712,436 ​ 6,456,248 ​ 6,717,872

EMPLOYEE BENEFITS (Tables)

EMPLOYEE BENEFITS (Tables)	12 Months Ended
	Dec. 31, 2021
EMPLOYEE BENEFITS
Schedule of total assets and liabilities of all types of employee benefits granted	​ ​ ​ ​ ​ ​ ​ 2021 2020 Plan assets - Defined contribution pension plan 4,942 ​ 39,196 Total assets 4,942 ​ 39,196 Actuarial liabilities - Defined benefit pension plan 1,083,719 ​ 1,441,592 Acturial liabilities - Post-employment health care benefit 318,181 ​ 362,944 Retirement and termination benefit liabilities 13,290 ​ 56,903 Total liabilities 1,415,190 ​ 1,861,439 Current 39 ​ 208 Non-current 1,415,151 ​ 1,861,231
Post-employment defined benefit pension plans
EMPLOYEE BENEFITS
Summary of sensitivity analysis	​ ​ ​ ​ ​ ​ ​ 1% Increase 1% Decrease Discount rate (17,822) 10,392
Defined benefit pension plan
EMPLOYEE BENEFITS
Schedule of current expenses of benefit plans	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Cost of current service 74,840 ​ 69,323 54,518 Interest expense 170,897 ​ 191,326 189,544 Return on plan assets (136,933) ​ (156,475) (163,148) Past service cost 7,093 ​ 3,967 2,302 Settlement (847) ​ (11,609) (4,712) Interest cost on unrecoverable surplus 4,371 ​ 7,413 16,247 Net pension cost 119,421 ​ 103,945 94,751
Schedule of reconciliations of assets and liabilities of benefit plans	​ ​ ​ ​ ​ ​ ​ 2021 2020 Present value of defined benefit obligation (5,409,065) ​ (5,921,285) Fair value of plan assets 4,647,361 ​ 4,652,000 Asset ceiling restrictions on recognition of net funded assets (322,015) ​ (172,307) Net (1,083,719) ​ (1,441,592) Defined benefit obligation (1,083,719) ​ (1,441,592)
Schedule of variation of plan obligations and assets	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Variation of the plan obligations ​ ​ ​ ​ ​ ​ Obligation at the begining of the year 5,921,285 4,601,965 4,391,251 Cost of service 74,840 ​ 69,323 54,518 Interest expense 170,897 ​ 191,326 189,544 Payments of the benefits (486,310) ​ (434,650) (309,817) Past service cost 7,093 ​ 3,967 2,302 Settlement (228,881) ​ (190,948) (498,493) Acturial remeasurements (457,421) ​ 467,106 546,911 Exchange Variance 407,562 ​ 1,213,196 225,749 Obligation at the end of the year 5,409,065 5,921,285 4,601,965 ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Variation of the plan assets ​ ​ ​ ​ ​ ​ Fair value of the plan assets at the begining of the year 4,652,000 3,656,891 3,568,934 Return of the plan assets 136,933 ​ 156,475 163,148 Contributions from sponsors 244,123 ​ 224,979 162,650 Settlement (228,034) ​ (179,339) (493,781) Payments of benefits (486,310) ​ (434,650) (309,817) Remeasurement 25,498 ​ 334,675 386,767 Exchange Variance 303,151 ​ 892,969 178,990 Fair value of plan assets at the end of the year 4,647,361 4,652,000 3,656,891
Summary of actuarial gains and losses recognized in other comprehensive income	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Remeasurements ​ (25,498) ​ (334,675) (386,767) Actuarial Remeasurements (457,421) ​ 467,106 546,911 Restriction recognized in Other Comprehensive Income 178,941 ​ (42,317) (94,198) Remeasurements recognized in Other Comprehensive Income (303,978) ​ 90,114 65,946
Summary of historical actuarial remeasurements	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 2018 2017 Present value of defined benefit obligation (5,409,065) ​ (5,921,285) ​ (4,601,965) (4,391,251) (4,314,592) Fair value of the plan assets 4,647,361 ​ 4,652,000 ​ 3,656,891 3,568,934 3,456,613 Surplus (Deficit) (761,704) ​ (1,269,285) ​ (945,074) (822,317) (857,979) Experience adjustments on plan liabilities (Gain) (457,421) ​ 467,106 ​ 546,911 (370,083) 235,549 Experience adjustments on plan assets (Gain) (25,498) ​ (334,675) ​ (386,767) 253,301 (232,214)
Summary of allocation for plan assets	​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ Brazilian Plans American Plans Fixed income 99.2% ​ 50.4% Variable income — ​ 43.0% Others 0.8% ​ 6.6% Total 100.0% ​ 100.0% ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ Brazilian Plans American Plans Fixed income 99.1% ​ 46.6% Variable income — ​ 47.1% Others 0.9% ​ 6.3% Total 100.0% ​ 100.0%
Summary of assumptions	​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ Brazilian Plan North America Plan Average discount rate 8.82% ​ 2.80% -2.90% Rate of increase in compensation Not applicable 3.00% Mortality table AT-2000 per sex RP-2006 and MP-2021 Mortality table of disabled AT-2000 per sex RP-2006 and MP-2021 Rate of rotation Null Based on age and/or the service ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ Brazilian Plan North America Plan Average discount rate 6.56% ​ 2.25% - 2.50% Rate of increase in compensation Not applicable 3.00% Mortality table AT-2000 per sex RP-2006 and MP-2020 Mortality table of disabled AT-2000 per sex RP-2006 and MP-2020 Rate of rotation Null Based on age and/or the service
Post-employment health care benefit
EMPLOYEE BENEFITS
Schedule of current expenses of benefit plans	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Current service cost 3,458 ​ 4,964 3,302 Interest expense 8,239 ​ 11,311 10,656 Past service cost (32,434) ​ (660) (2,717) Net cost pension benefit (20,737) ​ 15,615 11,241
Schedule of reconciliations of assets and liabilities of benefit plans	​ ​ ​ ​ ​ ​ ​ 2021 2020 Present value of obligations (318,181) ​ (362,944) Total net liabilities (318,181) ​ (362,944)
Schedule of variation of plan obligations and assets	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Change in benefit obligation ​ ​ ​ ​ ​ ​ Benefit obligation at beginning of the year 362,944 298,989 272,959 Cost of service 3,458 ​ 4,964 3,302 Interest expense 8,239 ​ 11,311 10,656 Past service cost (32,434) ​ (660) (2,717) Contributions from participants 2,032 ​ 2,349 2,088 Payment of benefits (17,431) ​ (20,870) (15,331) Remeasurements (36,938) ​ (23,533) 11,202 Exchange variations 28,311 ​ 90,394 16,830 Benefit obligation at the end of the year 318,181 ​ 362,944 298,989 ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Change in plan assets ​ ​ ​ ​ ​ ​ Contributions from sponsors 24,713 ​ 19,150 13,243 Contributions from participants 2,032 ​ 2,349 2,088 Payments of benefits (26,745) ​ (21,499) (15,331) Fair value of plan assets at end of the year — ​ — —
Summary of actuarial gains and losses recognized in other comprehensive income	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Losses / Gains on actuarial obligation (36,938) ​ (23,533) ​ 11,202 Actuarial losses recognized in Equity (36,938) ​ (23,533) ​ 11,202
Summary of historical actuarial remeasurements	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 2018 2017 Present value of defined benefit obligation (318,181) ​ (362,944) ​ (298,989) (272,959) (316,364) Deficit (318,181) ​ (362,944) ​ (298,989) (272,959) (316,364) Experience adjustments on plan liabilities (36,938) ​ (23,533) ​ 11,202 (40,841) (14,452)
Summary of assumptions	​ ​ ​ ​ ​ ​ ​ 2021 2020 Average discount rate 2.80% - 2.90% ​ 2.25% - 2.50% Health treatment - rate assumed next year 4.99% - 6.20% ​ 6.10% - 6.50% Health treatment - Assumed rate of decline in the cost to achieve in the years of 2028 to 2041 3.20% - 4.50% ​ 4.00% - 4.40%
Summary of sensitivity analysis	​ ​ ​ ​ ​ ​ ​ 1% Increase 1% Decrease Effect over total service costs and interest costs 1,710 (1,327) Effect over benefit plan obligations 32,082 (26,573)

ENVIRONMENTAL LIABILITIES (Tabl

ENVIRONMENTAL LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2021
ENVIRONMENTAL LIABILITIES
Schedule of provision for environmental liabilities	​ ​ ​ ​ ​ ​ ​ 2021 2020 Provision for environmental liabilities 575,709 ​ 297,094 Current 231,711 ​ 125,992 Non-current 343,998 ​ 171,102

EQUITY (Tables)

EQUITY (Tables)	12 Months Ended
	Dec. 31, 2021
EQUITY.
Schedule of reconciliations of common and preferred outstanding shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ Common shares Preferred shares Common shares Preferred shares Common shares Preferred shares Balance at beginning of the year 571,929,945 1,129,231,487 571,929,945 1,127,010,827 571,929,945 1,124,233,755 Exercise of long-term incentive plan — 4,585,414 — 2,220,660 — 2,777,072 Balance at the end of the year 571,929,945 ​ 1,133,816,901 ​ 571,929,945 ​ 1,129,231,487 ​ 571,929,945 ​ 1,127,010,827
Schedule of ownership of shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders ​ ​ 2021 Shareholders Common % Pref. % Total % Metalúrgica Gerdau S.A. * 557,898,901 97.3 — — 557,898,901 32.4 Brazilian institutional investors 4,363,438 0.8 232,421,779 20.3 236,785,217 13.8 Foreign institutional investors 1,895,038 0.3 490,810,572 42.8 492,705,610 28.7 Other shareholders 7,772,568 1.4 410,584,550 35.8 418,357,118 24.3 Treasury stock 1,697,538 0.2 12,214,344 1.1 13,911,882 0.8 ​ 573,627,483 100.0 1,146,031,245 100.0 1,719,658,728 100.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders ​ ​ 2020 Shareholders Common % Pref. % Total % Metalúrgica Gerdau S.A. * 557,898,901 97.3 2,147,800 0.2 560,046,701 32.6 Brazilian institutional investors 3,397,955 0.6 227,262,531 19.8 230,660,486 13.4 Foreign institutional investors 3,142,148 0.5 492,076,396 42.9 495,218,544 28.8 Other shareholders 7,490,941 1.3 407,744,760 35.6 415,235,701 24.1 Treasury stock 1,697,538 0.3 16,799,758 1.5 18,497,296 1.1 ​ 573,627,483 100.0 1,146,031,245 100.0 1,719,658,728 100.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders ​ ​ 2019 Shareholders Common % Pref. % Total % Metalúrgica Gerdau S.A. * 557,898,901 97.3 69,852,184 6.1 627,751,085 36.5 Brazilian institutional investors 3,068,614 0.5 241,698,143 21.1 244,766,757 14.2 Foreign institutional investors 3,875,655 0.7 427,735,548 37.3 431,611,203 25.1 Other shareholders 7,086,775 1.2 387,724,952 33.8 394,811,727 23.0 Treasury stock 1,697,538 0.3 19,020,418 1.7 20,717,956 1.2 ​ 573,627,483 100.0 1,146,031,245 100.0 1,719,658,728 100.0 * Metalurgica Gerdau S.A. is the controlling shareholder and Indac – Ind. e Com. S.A. (holding of Gerdau’s family) is the utltimate controlling shareholder of the Company.
Schedule of changes in treasury stocks	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ Common shares R$ Preferred shares R$ Opening balance 1,697,538 557 16,799,758 228,752 Exercise of long-term incentive plan — — (4,585,414) (76,900) Closing balance 1,697,538 557 12,214,344 151,852 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ Common shares R$ Preferred shares R$ Opening balance 1,697,538 557 19,020,418 241,985 Exercise of long-term incentive plan — — (2,220,660) (13,233) Closing balance 1,697,538 557 16,799,758 228,752 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ Common shares R$ Preferred shares R$ Opening balance 1,697,538 557 21,797,490 279,869 Exercise of long-term incentive plan — — (2,777,072) (37,884) Closing balance 1,697,538 557 19,020,418 241,985
Schedule of effects of interest changes in subsidiaries	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ Attributed to parent ​ Non-controlling ​ ​ ​ company’s interest interests Total (i) Other changes — (18,962) (18,962) Effects of interest changes in subsidiaries — (18,962) (18,962) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Attributed to parent ​ Non-controlling ​ ​ ​ company’s interest interests Total (i) Other changes — 12,776 12,776 Effects of interest changes in subsidiaries — 12,776 12,776 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ ​ Attributed to parent ​ Non-controlling ​ ​ ​ company’s interest interests Total (i) Other changes — (1,586) (1,586) Effects of interest changes in subsidiaries — (1,586) (1,586) (i) Other changes in subsidiaries without losing control, which may include among others, capital increases, other acquisitions of interests and dilutions of any nature.
Schedule of dividend amounts considered as distributed using the balance of the Investments and Working Capital Reserve	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Net income 15,494,111 2,365,763 1,203,736 Constitution of legal reserve ​ (756,334) ​ (109,649) ​ (55,876) Constitution of the tax incentives reserve ​ (367,430) ​ (172,792) ​ (86,216) Net income before dividends and interest on capital ​ 14,370,347 ​ 2,083,322 ​ 1,061,644 Dividends and interest on capital ​ (5,014,450) ​ (714,487) ​ (356,539) Dividend - adjustment in excess of the minimum estatutory undistributed ​ (341,150) ​ — ​ — Net income before constitution of investments and working capital reserve ​ 9,014,747 ​ 1,368,835 ​ 705,105 ​ ​ ​ ​ ​ ​ ​ Constitution of investments and working capital reserve ​ (9,014,747) ​ (1,368,835) ​ (705,105)
Schedule of dividends and interest on capital	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends and interest on capital in the years ​ ​ ​ Outstanding shares ​ ​ ​ ​ ​ Period ​ Nature ​ R$ /share ​ (thousands) ​ Credit ​ Payment ​ 2021 ​ 2020 ​ 2019 1 st ​ Dividends ​ 0.40 ​ 1,705,338 ​ 5/14/2021 ​ 5/26/2021 ​ 682,199 ​ — ​ 118,803 2 nd Dividends 0.54 1,705,576 8/16/2021 8/26/2021 921,011 — 118,817 3 rd Interest 0.38 1,705,582 9/27/2021 11/16/2021 648,122 — — 3 rd Interest 0.20 1,705,630 11/5/2021 11/16/2021 341,126 — — 3 rd Dividends 1.42 1,705,628 11/5/2021 11/16/2021 2,421,992 204,139 67,951 4 th Dividends 0.20 1,705,747 3/7/2022 3/16/2022 341,150 — 50,968 4 th ​ Interest ​ ​ ​ ​ ​ ​ ​ ​ ​ — ​ 510,348 ​ — Proposed Interest and Dividends ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5,355,600 ​ 714,487 ​ 356,539 Credit per share (R$) 3.14 0.42 0.21 ​ ​ ​ ​

EARNINGS (LOSS) PER SHARE (EP_2

EARNINGS (LOSS) PER SHARE (EPS) (Tables)	12 Months Ended
	Dec. 31, 2021
EARNINGS (LOSS) PER SHARE (EPS)
Schedule of basic and diluted earnings (loss) per share	Basic ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ Common Preferred Total ​ ​ (in thousands, except share and per share data) Basic numerator Allocated net income available to common and preferred shareholders 5,198,011 10,296,100 15,494,111 ​ ​ ​ ​ ​ ​ ​ Basic denominator Weighted-average outstanding shares, after deducting the average tresuary shares 571,929,945 1,132,865,567 ​ ​ ​ ​ ​ ​ ​ Earnings per share (in R$) — Basic 9.09 9.09 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ Common Preferred Total ​ ​ (in thousands, except share and per share data) Basic numerator Allocated net income available to common and preferred shareholders 795,617 1,570,146 2,365,763 ​ ​ ​ ​ ​ ​ ​ Basic denominator Weighted-average outstanding shares, after deducting the average tresuary shares 571,929,945 1,128,700,478 ​ ​ ​ ​ ​ ​ ​ Earnings per share (in R$) — Basic 1.39 1.39 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ Common Preferred Total ​ ​ (in thousands, except share and per share data) Basic numerator Allocated net income available to common and preferred shareholders 405,607 798,129 1,203,736 ​ ​ ​ ​ ​ ​ ​ Basic denominator Weighted-average outstanding shares, after deducting the average tresuary shares 571,929,945 1,125,408,180 ​ ​ ​ ​ ​ ​ ​ Earnings per share (in R$) — Basic 0.71 0.71 ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 ​ 2019 Diluted numerator ​ ​ ​ ​ ​ ​ Allocated net income available to Common and Preferred shareholders ​ ​ Net income allocated to preferred shareholders 10,296,100 1,570,146 ​ 798,129 Add: ​ Adjustment to net income allocated to preferred shareholders in respect to the potential increase in number of preferred shares outstanding, as a result of long-term incentive plans of Gerdau. 26,192 5,524 ​ 2,884 ​ 10,322,292 1,575,670 ​ 801,013 Net income allocated to common shareholders 5,198,011 795,617 ​ 405,607 Less: ​ Adjustment to net income allocated to preferred shareholders in respect to the potential increase in number of preferred shares outstanding, as a result of long-term incentive plans of Gerdau. (26,192) (4,782) ​ (2,884) ​ 5,171,819 790,835 ​ 402,723 Diluted denominator ​ ​ ​ ​ Weighted - average number of shares outstanding ​ ​ ​ ​ Common Shares 571,929,945 571,929,945 ​ 571,929,945 Preferred Shares ​ ​ ​ ​ Weighted-average number of preferred shares outstanding 1,132,865,567 1,128,700,478 ​ 1,125,408,180 Potential increase in number of preferred shares outstanding in respect of long-term incentive plan of Gerdau 8,633,716 10,821,083 ​ 12,157,614 Total 1,141,499,283 1,139,521,561 ​ 1,137,565,794 ​ ​ ​ ​ ​ ​ ​ Earnings per share — Diluted (Common and Preferred Shares) 9.04 1.38 ​ 0.70

LONG-TERM INCENTIVE PLANS (Tabl

LONG-TERM INCENTIVE PLANS (Tables)	12 Months Ended
	Dec. 31, 2021
LONG-TERM INCENTIVE PLANS
Summary of changes in restricted and performance shares	​ ​ ​ ​ Balance on January 1, 2019 14,261,501 Granted 2,647,995 Cancelled (2,104,754) Exercised (1,786,335) Balance on December 31, 2019 13,018,407 Granted 3,146,696 Cancelled (1,777,100) Exercised (1,918,669) Balance on December 31, 2020 12,469,334 Granted 2,228,196 Cancelled (1,755,522) Exercised (4,407,441) Balance on December 31, 2021 8,534,567
Summary of stock options by exercise price	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 ​ ​ Average exercise ​ Average exercise ​ Average exercise ​ Number of shares price in the year Number of shares price in the year Number of shares price in the year ​ ​ R$ ​ R$ ​ R$ Available at beginning of the year ​ — ​ — ​ — ​ — ​ 15,480 ​ 16.72 Options Forfeited ​ — ​ — ​ — ​ — ​ (15,480) ​ 16.72 Available at the end of the year ​ — ​ — ​ — ​ — ​ — ​ —

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2021
SEGMENT REPORTING
Schedule of company's segment information classified according to the business segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Segments ​ ​ 2021 ​ ​ North America South America Special Steel Eliminations and ​ ​ ​ Brazil Operation ​ Operation ​ Operation ​ Operation ​ Adjustments ​ Consolidated Net sales 34,757,720 ​ 27,838,000 ​ 6,856,766 ​ 10,980,191 ​ (2,087,596) ​ 78,345,081 Cost of sales (22,496,140) ​ (22,416,578) ​ (5,332,853) ​ (9,427,221) ​ 2,145,071 ​ (57,527,721) Gross profit 12,261,580 ​ 5,421,422 ​ 1,523,913 ​ 1,552,970 ​ 57,475 ​ 20,817,360 Selling, general and administrative expenses (781,942) ​ (639,370) ​ (157,912) ​ (233,348) ​ (293,379) ​ (2,105,951) Other operating income (expenses) 137,649 ​ 42,141 ​ 27,514 ​ 71,287 ​ 241,140 ​ 519,731 Eletrobras compulsory loan recovery ​ — ​ — ​ — ​ — ​ 1,391,280 ​ 1,391,280 Results in operations with subsidiary and joint ventures (note 3.4) ​ — ​ — ​ — ​ — ​ (162,913) ​ (162,913) Impairment of financial assets ​ 7,823 ​ (7,668) ​ (1,073) ​ 1,275 ​ — ​ 357 Equity in earnings of unconsolidated companies — ​ 279,948 ​ 268,291 ​ 28,831 ​ (13,912) ​ 563,158 Operational income before financial income (expenses) and taxes 11,625,110 ​ 5,096,473 ​ 1,660,733 ​ 1,421,015 ​ 1,219,691 ​ 21,023,022 Financial result, net (538,341) ​ (156,437) ​ (314,473) ​ (238,249) ​ 497,046 ​ (750,454) Income (Loss) before taxes 11,086,769 ​ 4,940,036 ​ 1,346,260 ​ 1,182,766 ​ 1,716,737 ​ 20,272,568 Income and social contribution taxes (2,769,495) ​ (1,092,146) ​ (377,286) ​ (287,292) ​ (187,411) ​ (4,713,630) Net income (Loss) 8,317,274 3,847,890 968,974 895,474 1,529,326 15,558,938 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental information: Net sales between segments 1,352,079 70,904 16,297 648,316 — 2,087,596 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation/amortization 1,330,963 627,483 213,001 487,114 — 2,658,561 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in associates and joint ventures — 1,871,274 ​ 1,071,333 251,668 146,500 ​ 3,340,775 Total assets 24,835,717 22,096,314 ​ 7,113,706 13,658,147 6,110,729 ​ 73,814,613 Total liabilities 8,105,443 4,603,424 ​ 2,376,176 2,801,071 13,112,850 ​ 30,998,964 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Segments ​ ​ 2020 ​ ​ North America South America Special Steel Eliminations and ​ ​ ​ Brazil Operation ​ Operation ​ Operation ​ Operation ​ Adjustments ​ Consolidated Net sales 17,752,823 ​ 17,458,318 ​ 3,831,406 ​ 6,096,471 ​ (1,324,357) ​ 43,814,661 Cost of sales (14,179,991) ​ (16,212,757) ​ (3,015,189) ​ (5,794,666) ​ 1,318,501 ​ (37,884,102) Gross profit 3,572,832 ​ 1,245,561 ​ 816,217 ​ 301,805 ​ (5,856) ​ 5,930,559 Selling, general and administrative expenses (562,019) ​ (476,518) ​ (116,479) ​ (179,822) ​ (195,547) ​ (1,530,385) Other operating income (expenses) 31,500 ​ 97,751 ​ 16,684 ​ 55,097 ​ 916,667 ​ 1,117,699 Impairment of non-financial assets ​ — ​ (342,355) ​ — ​ (69,570) ​ — ​ (411,925) Impairment of financial assets ​ (23,177) ​ (36,286) ​ (2,436) ​ (2,233) ​ — ​ (64,132) Equity in earnings of unconsolidated companies (1,287) ​ 23,512 ​ 99,341 ​ 8,899 ​ 22,104 ​ 152,569 Operational income before financial income (expenses) and taxes 3,017,849 ​ 511,665 ​ 813,327 ​ 114,176 ​ 737,368 ​ 5,194,385 Financial result, net (442,972) ​ (206,405) ​ (60,787) ​ (215,433) ​ (773,110) ​ (1,698,707) Income (Loss) before taxes 2,574,877 ​ 305,260 ​ 752,540 ​ (101,257) ​ (35,742) ​ 3,495,678 Income and social contribution taxes (652,126) ​ (178,447) ​ (195,440) ​ 13,229 ​ (94,840) ​ (1,107,624) Net income (Loss) 1,922,751 126,813 557,100 (88,028) (130,582) 2,388,054 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental information: Net sales between segments 1,149,618 60,370 41 114,328 — 1,324,357 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation/amortization 1,135,294 777,369 142,143 444,298 — 2,499,104 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in associates and joint ventures 10,186 908,338 ​ 976,046 231,152 145,907 ​ 2,271,629 Total assets 21,099,735 18,583,439 ​ 5,448,922 11,233,676 6,757,237 ​ 63,123,009 Total liabilities 7,469,541 5,261,820 ​ 1,360,098 1,994,575 15,951,765 ​ 32,037,799 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Business Segments ​ ​ 2019 ​ ​ North America South America Special Steel Eliminations and ​ ​ ​ Brazil Operation ​ Operation ​ Operation ​ Operation ​ Adjustments ​ Consolidated Net sales 16,122,171 ​ 14,656,028 ​ 3,259,253 ​ 6,701,900 ​ (1,095,342) ​ 39,644,010 Cost of sales (14,363,253) ​ (13,351,209) ​ (2,762,157) ​ (6,167,502) ​ 1,203,395 ​ (35,440,726) Gross profit 1,758,918 ​ 1,304,819 ​ 497,096 ​ 534,398 ​ 108,053 ​ 4,203,284 Selling, general and administrative expenses (539,344) ​ (444,326) ​ (119,627) ​ (170,170) ​ (156,989) ​ (1,430,456) Other operating income (expenses) 295,818 ​ 44,660 ​ 17,416 ​ 35,571 ​ 55,734 ​ 449,200 Impairment of financial assets ​ (2,012) ​ (14,612) ​ (1,906) ​ (2,513) ​ — ​ (21,044) Equity in earnings of unconsolidated companies (828) ​ (110,959) ​ 66,468 ​ 6,776 ​ 21,493 ​ (17,050) Operational income before financial income (expenses) and taxes 1,512,552 ​ 779,582 ​ 459,447 ​ 404,062 ​ 28,291 ​ 3,183,934 Financial result, net (520,821) ​ (99,029) ​ (163,459) ​ (109,116) ​ (616,789) ​ (1,509,214) Income (Loss) before taxes 991,731 ​ 680,553 ​ 295,988 ​ 294,946 ​ (588,498) ​ 1,674,720 Income and social contribution taxes (214,400) ​ (188,458) ​ (100,341) ​ (60,749) ​ 106,115 ​ (457,833) Net income (Loss) 777,331 492,095 195,647 234,197 (482,383) 1,216,887 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental information: ​ ​ ​ ​ ​ ​ Net sales between segments 920,659 62,196 — 112,487 — 1,095,342 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation/amortization 1,008,713 571,015 120,462 374,105 — 2,074,295 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in associates and joint ventures 11,472 681,807 ​ 748,392 224,201 146,527 ​ 1,812,399 Total assets 17,195,824 15,178,053 ​ 4,562,604 8,597,180 8,469,309 ​ 54,002,970 Total liabilities 4,686,686 4,506,771 ​ 996,876 1,604,885 15,034,625 ​ 26,829,843
Schedule of company's geographic information classified according to the geographical region	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic Area ​ ​ Brazil ​ Latin America (1) ​ North America (2) ​ Consolidated ​ 2021 2021 2021 2021 Net sales 37,733,918 8,567,310 ​ 32,043,853 78,345,081 Total assets 31,740,469 8,959,237 ​ 33,114,907 73,814,613 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic Area ​ ​ Brazil ​ Latin America (1) ​ North America (2) ​ Consolidated ​ 2020 2020 2020 2020 Net sales 18,798,384 4,996,434 ​ 20,019,843 43,814,661 Total assets 28,752,629 7,042,462 ​ 27,327,918 63,123,009 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic Area ​ ​ Brazil ​ Latin America (1) ​ North America (2) ​ Consolidated ​ 2019 2019 2019 2019 Net sales 17,573,278 4,201,165 ​ 17,869,567 39,644,010 Total assets 26,124,159 5,781,527 ​ 22,097,284 54,002,970 (1) Does not include operations of Brazil (2) Does not include operations of Mexico

EXPENSES BY NATURE (Tables)

EXPENSES BY NATURE (Tables)	12 Months Ended
	Dec. 31, 2021
EXPENSES BY NATURE
Schedule of expenses classified by nature	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 Depreciation and amortization (2,658,561) (2,499,104) (2,074,295) Labor expenses (7,249,811) (5,867,265) (5,175,373) Raw material and consumption material (43,720,989) (26,945,440) (25,890,618) Freight (3,898,360) (2,572,293) (2,300,439) Other expenses/income, net (1,585,863) (476,818) (1,002,301) Eletrobras compulsory loan recovery 1,391,280 — — Results in operations with subsidiary and joint ventures (162,913) — — Impairment of non-financial assets — (411,925) — ​ ​ (57,885,217) ​ (38,772,845) ​ (36,443,026) Classified as: Cost of sales (57,527,721) (37,884,102) (35,440,726) Selling expenses (715,830) (512,950) (476,339) General and administrative expenses (1,390,121) (1,017,435) (954,117) Other operating income 979,760 1,763,684 636,847 Other operating expenses (460,029) (645,985) (187,647) Eletrobras compulsory loan recovery ​ 1,391,280 ​ — ​ — Results in operations with subsidiary and joint ventures (162,913) — — Impairment of financial assets 357 (64,132) (21,044) Impairment of non-financial assets — ​ (411,925) — ​ ​ (57,885,217) ​ (38,772,845) ​ (36,443,026)

FINANCIAL INCOME (Tables)

FINANCIAL INCOME (Tables)	12 Months Ended
	Dec. 31, 2021
FINANCIAL INCOME
Schedule of financial income	​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 2020 2019 ​ ​ ​ ​ ​ ​ ​ Income from short-term investments 182,639 108,057 87,241 Interest income and other financial income 66,385 86,035 135,972 Financial Income 249,024 194,092 223,213 ​ ​ ​ ​ ​ ​ ​ Interest on debt (1,059,841) (1,022,460) (938,120) Monetary variation and other financial expenses (373,246) (426,001) (531,634) Financial Expenses (1,433,087) (1,448,461) (1,469,754) ​ ​ ​ ​ ​ ​ ​ Exchange Variation, net ​ (108,373) ​ (204,291) ​ (247,555) Bonds repurchase expenses ​ (264,687) ​ (239,273) ​ — Tax credits monetary update 788,741 — — Gains and losses on derivative financial instruments, net 17,928 (774) (15,118) Financial result, net (750,454) (1,698,707) (1,509,214)

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Details)	12 Months Ended
	Dec. 31, 2021shares
Dividends and Interest on equity
Minimum annual mandatory dividend (as a percent)	30.00%
Legal reserve, as a percent of net income	5.00%
Earnings per Share
Antidilutive shares excluded from calculation of diluted EPS	0

CONSOLIDATED FINANCIAL STATEM_3

CONSOLIDATED FINANCIAL STATEMENTS - Subsidiaries (Details)		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Gerdau GTL Spain S.L.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
Gerdau Internacional Empreendimentos Ltda. - Grupo Gerdau
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
Gerdau Ameristeel Corporation and subsidiaries
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1],[2]	100.00%	100.00%	100.00%
Gerdau Acominas S.A.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	99.86%	99.86%	99.83%
Gerdau Acos Longos S.A. and subsidiary
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1],[3]	99.83%	99.82%	99.82%
Gerdau Steel Inc.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
Gerdau Holdings Inc. and subsidiary
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1],[4]	100.00%	100.00%	100.00%
Paraopeba - Fixed-income investment fund
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1],[5],[6]	70.62%	89.26%	96.96%
Percent of participation in investment fund		73.54%	92.58%	98.07%
Gerdau Hungria Holdings Limited Liability Company
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
GTL Equity Investments Corp.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
Empresa Siderurgica del Peru S.A.A. - Siderperu
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	90.03%	90.03%	90.03%
Gerdau GTL Mxico, S.A. de C.V. and subsidiary
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1],[7]	100.00%	100.00%	100.00%
Seiva S.A. Florestas e Industrias
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	97.73%	97.73%	97.73%
Gerdau Laisa S.A.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
Sipar Gerdau Inversiones S.A.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	99.99%	99.99%	99.99%
Sipar Aceros S.A. and subsidiary
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1],[8]	99.98%	99.98%	99.98%
Sizuca - Siderrgica Zuliana, C. A.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
GTL Trade Finance Inc.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
Gerdau Trade Inc.
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1]	100.00%	100.00%	100.00%
Gerdau Next S.A. and subsidiaries
Significant consolidated subsidiaries
Equity Interests (as a percent)	[1],[9]	100.00%
[1]	The voting capital is substantially equal to the total capital. The interests reported represent the ownership percentage held directly and indirectly in the subsidiary.
[2]	Subsidiaries: Gerdau Ameristeel US Inc., Chaparral Steel Company.
[3]	Subsidiaries: Gerdau Açominas Overseas Ltd. and Siderúrgica Latino-Americana S.A.
[4]	Subsidiary: Gerdau MacSteel Inc.
[5]	Fixed-income investment fund managed by Bank JP Morgan S.A.
[6]	The percentage of participation including interest of the parent company Metalúrgica Gerdau S.A. in the investment fund is 73.54% in 2021, 92.58% in 2020 and 98.07% in 2019
[7]	Subsidiary: GTL Servicios Administrativos México, S.A. de C.V.
[8]	Subsidiary: Siderco S.A.
[9]	Subsidiaries: G2L Logística Ltda, G2base Fundações e Contenções Ltda and Gerdau Grafeno Ltda.

CONSOLIDATED FINANCIAL STATEM_4

CONSOLIDATED FINANCIAL STATEMENTS - Joint ventures (Details) - BRL (R$) R$ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Joint ventures
Net income (loss)		R$ 15558938	R$ 2388054	R$ 1216887
Total comprehensive income (loss)		16,812,883	4,653,996	1,589,369
Results in operations with subsidiary and joint ventures (note 3.4)		511,514
Amount of the additional interest		511,514
Joint ventures
Joint ventures
Net income (loss)		959,116	249,158	(21,548)
Total comprehensive income (loss)		R$ 959116	R$ 249158	R$ 21548
Bradley Steel Processors
Joint ventures
Equity Interests (as a percent)	[1]	50.00%	50.00%	50.00%
MRM Guide Rail
Joint ventures
Equity Interests (as a percent)	[1]	50.00%	50.00%	50.00%
Gerdau Corsa S.A.P.I de C.V.
Joint ventures
Equity Interests (as a percent)	[1]	75.00%	70.00%	70.00%
Capital increase				R$ 463990
Results in operations with subsidiary and joint ventures (note 3.4)		R$ 511514
Amount of the additional interest		R$ 511514
Gerdau Corsa S.A.P.I de C.V. | Minimum
Joint ventures
Equity Interests (as a percent)		70.00%
Gerdau Corsa S.A.P.I de C.V. | Maximum
Joint ventures
Equity Interests (as a percent)		75.00%
Gerdau Metaldom Corp.
Joint ventures
Equity Interests (as a percent)	[1]	50.00%	50.00%	50.00%
Gerdau Summit Acos Fundidos e Forjados S.A.
Joint ventures
Equity Interests (as a percent)	[1]	58.73%	58.73%	58.73%
Diaco S.A.
Joint ventures
Equity Interests (as a percent)	[1]	49.87%	49.87%	49.87%
Juntos Somos Mais Fidelizacao S.A.
Joint ventures
Equity Interests (as a percent)	[1]	27.50%	27.50%	27.50%
[1]	The voting capital is substantially equal to the total capital. The interests reported represent the ownership percentage held directly and indirectly held in the joint venture.

CONSOLIDATED FINANCIAL STATEM_5

CONSOLIDATED FINANCIAL STATEMENTS - Associate companies (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Interest in Associate companies
Net income	R$ 15558938	R$ 2388054	R$ 1216887
Total comprehensive income (loss) recognized in the year	16,812,883	4,653,996	1,589,369
Associate companies
Interest in Associate companies
Net income	37,231	42,008	31,249
Total comprehensive income (loss) recognized in the year	R$ 37231	R$ 42008	R$ 31249
Dona Francisca Energtica S.A.
Interest in Associate companies
Equity Interests (as a percent)	51.82%	51.82%	51.82%

CONSOLIDATED FINANCIAL STATEM_6

CONSOLIDATED FINANCIAL STATEMENTS - Results in operations with subsidiary and joint ventures (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disclosure of Significant Investments in Subsidiary and Joint Ventures [Line Items]
Recycling to income of the cumulative translation adjustments	R$ 193334	R$ 0	R$ 0
Write-off of goodwill	(549,898)
Results in operations with subsidiary and joint ventures	(162,913)	R$ 0	R$ 0
Gerdau Corsa S.A.P.I de C.V. | North America Operation
Disclosure of Significant Investments in Subsidiary and Joint Ventures [Line Items]
Write-off of goodwill	549,898
Results in operations with subsidiary and joint ventures	R$ 162913
Gerdau Corsa S.A.P.I de C.V. | Minimum
Disclosure of Significant Investments in Subsidiary and Joint Ventures [Line Items]
Equity Interests (as a percent)	70.00%
Gerdau Corsa S.A.P.I de C.V. | Maximum
Disclosure of Significant Investments in Subsidiary and Joint Ventures [Line Items]
Equity Interests (as a percent)	75.00%
Sidertul, S.A. de C.V.
Disclosure of Significant Investments in Subsidiary and Joint Ventures [Line Items]
Gain due to the fair value adjustment of the interest held	R$ 193651
Recycling to income of the cumulative translation adjustments	R$ 193334

CONSOLIDATED FINANCIAL STATEM_7

CONSOLIDATED FINANCIAL STATEMENTS - Acquisition of subsidiary (Details) T in Thousands, R$ in Thousands	12 Months Ended
	Dec. 31, 2021BRL (R$)	Dec. 31, 2020BRL (R$)	Dec. 31, 2019BRL (R$)	Nov. 30, 2020BRL (R$)T	Dec. 31, 2018BRL (R$)
Book Value
Cash and cash equivalents, Book Value	R$ 4160654	R$ 4617204	R$ 2641652		R$ 2890144
Trade accounts receivable - net, Book Value	5,414,075	3,737,270
Inventories, Book Value	16,861,488	9,169,417
Other current assets, Book Value	679,193	591,523
Property, plant and equipment, Book Value	18,741,786	17,252,915	15,901,493
Current liabilities, Book Value	(14,036,814)	(11,482,143)
Non-current liabilities, Book Value	(16,962,150)	(20,555,656)
Non-controlling interest, Book Value	(211,367)	(224,939)
TOTAL ASSETS	73,814,613	63,123,009	54,002,970
Fair value upon acquisition
Total consideration paid		475,961
Less: Cash and cash equivalents of acquired subsidiary		(33,419)
Total	R$ 0	442,542	R$ 0
Siderurgica Latino-Americana SA ("SILAT")
Acquisition Adjustments
Property, plant and equipment, Acquisition Adjustments				R$ 253216
Non-current liabilities, Acquisition Adjustments				(86,093)
Non-controlling Interest, Acquisition Adjustments				(6,100)
Assets (Liabilities), Acquisition Adjustments				161,023
Negative Goodwill, Acquisition Adjustments				(2,481)
Net assets, Acquisition Adjustments				158,542
Book Value
Cash and cash equivalents, Book Value				33,419
Trade accounts receivable - net, Book Value				13,190
Inventories, Book Value				24,160
Other current assets, Book Value				11,091
Property, plant and equipment, Book Value				233,541
Other non-current assets, Book Value				34,410
Current liabilities, Book Value				(26,638)
Non-current liabilities, Book Value				(359)
Non-controlling interest, Book Value				(5,395)
TOTAL ASSETS				317,419
Net assets, Book Value				317,419
Fair value upon acquisition
Cash and cash equivalents, Fair value upon acquisition				33,419
Trade accounts receivable - net, Fair value upon acquisition				13,190
Inventories, Fair value upon acquisition				24,160
Other current assets, Fair value upon acquisition				11,091
Property, plant and equipment, Fair value upon acquisition				486,757
Other non-current assets, Fair value upon acquisition				34,410
Current liabilities, Fair value upon acquisition				(26,638)
Non-controlling interest, Fair value upon acquisition				(11,495)
Non-current liabilities, Fair value upon acquisition				(86,452)
Assets (Liabilities), Fair value upon acquisition				478,442
Negative Goodwill, Fair value upon acquisition		2,481		2,481
Net assets		R$ 475961		R$ 475961
Gerdau Acos Longos S.A. | Siderurgica Latino-Americana SA ("SILAT")
Acquisition of subsidiary
Percentage of equity interest acquired (as a percent)				96.35%
Fair value upon acquisition
Net assets				R$ 475961
Gerdau Acos Longos S.A. | Siderurgica Latino-Americana SA ("SILAT") | Long steel rolled
Acquisition of subsidiary
Production capacity (in tons) | T				600

CASH AND CASH EQUIVALENTS, AN_3

CASH AND CASH EQUIVALENTS, AND SHORT AND LONG-TERM INVESTMENTS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CASH AND CASH EQUIVALENTS, AND SHORT AND LONG-TERM INVESTMENTS
Cash	R$ 14667	R$ 9060
Banks and immediately available investments	4,145,987	4,608,144
Cash and cash equivalents	4,160,654	4,617,204	R$ 2641652	R$ 2890144
Short-term investments	R$ 2626212	R$ 3041143

TRADE ACCOUNTS RECEIVABLE - Sum

TRADE ACCOUNTS RECEIVABLE - Summary (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	R$ 5414075	R$ 3737270
Gross cost | in Brazil
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	2,640,011	2,081,740
Gross cost | exports from Brazil
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	249,834	26,121
Gross cost | outside of Brazil
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	2,632,002	1,766,555
Accumulated impairment losses
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	R$ 107772	R$ 137146

TRADE ACCOUNTS RECEIVABLE - Acc

TRADE ACCOUNTS RECEIVABLE - Accounts receivable by aging (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	R$ 5414075	R$ 3737270
Accumulated impairment losses
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	(107,772)	(137,146)
Current | Gross cost
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	4,646,175	3,466,000
Past due: Up to 30 days | Gross cost
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	494,866	259,756
Past due: From 31 to 60 days | Gross cost
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	139,415	48,905
Past due: From 61 to 90 days | Gross cost
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	32,245	9,355
Past-due: From 91 to 180 days | Gross cost
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	169,959	13,636
Past-due: From 181 to 360 days | Gross cost
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	8,220	15,899
Past due: Above 360 days | Gross cost
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable - net, Book Value	R$ 30967	R$ 60865

TRADE ACCOUNTS RECEIVABLE - Cha

TRADE ACCOUNTS RECEIVABLE - Changes in impairment (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in the impairment on financial assets on financial assets
Balance, beginning of year	R$ 137146	R$ 98079	R$ 158157
Impairment on financial assets during the year	(55,731)	(148,548)	(81,243)
Recoveries in the year	56,088	84,416	60,199
Write-offs	9,892	36,210	78,635
Loss of control of subsidiary (note 3.4)	23,203
Exchange variation	(4,078)	(11,145)	2,487
Balance, end of year	R$ 107772	R$ 137146	R$ 98079

INVENTORIES - Summary (Details)

INVENTORIES - Summary (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
INVENTORIES
Inventories, Book Value	R$ 16861488	R$ 9169417
Gross cost
INVENTORIES
Finished products	7,209,379	3,894,698
Work in progress	3,453,948	2,045,158
Raw materials	3,994,655	1,934,958
Storeroom supplies	1,061,666	786,401
Imports in transit	1,145,215	514,321
Accumulated impairment losses
INVENTORIES
Inventories, Book Value	R$ 3375	R$ 6119

INVENTORIES - Allowance for adj

INVENTORIES - Allowance for adjustment to net realizable value of inventories (Details) - Inventories - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allowance for adjustment to net realizable value of inventories
Balance, beginning of year	R$ 6119	R$ 39308	R$ 13704
Provision for the year	(6,331)	(6,562)	(46,693)
Reversal of adjustments to net realizable value	9,143	47,259	22,028
Exchange rate variation	(68)	(7,508)	(939)
Balance, end of year	R$ 3375	R$ 6119	R$ 39308

TAX CREDITS - Current and Non-c

TAX CREDITS - Current and Non-current (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Disclosure of Tax credits
Tax credits - current	R$ 2083885	R$ 1201312
Tax credits - non-current	124,600	664,045
Tax credits
Disclosure of Tax credits
Tax credits - current	2,083,885	1,201,312
Tax credits - non-current	124,600	664,045
Tax credits - current and non-current	2,208,485	1,865,357
ICMS (state VAT)
Disclosure of Tax credits
Tax credits - current	155,373	297,926
Tax credits - non-current	85,512	64,163
Social security financing
Disclosure of Tax credits
Tax credits - current	1,456,593	632,927
Tax credits - non-current	238	441,111
Financing of social integration program
Disclosure of Tax credits
Tax credits - current	226,477	171,724
Financing of social integration program and others
Disclosure of Tax credits
Tax credits - non-current	38,850	158,771
IPI (federal VAT)
Disclosure of Tax credits
Tax credits - current	67,166	38,174
IVA (Value-added tax)
Disclosure of Tax credits
Tax credits - current	126,281	24,500
Other tax credits
Disclosure of Tax credits
Tax credits - current	R$ 51995	R$ 36061

TAX CREDITS - Realization of no

TAX CREDITS - Realization of non-current tax credits (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Estimates of realization of non-current tax credits
Tax credits - non-current	R$ 124600	R$ 664045
Tax credits
Estimates of realization of non-current tax credits
Tax credits - non-current	124,600	664,045
Tax credits | 2022.
Estimates of realization of non-current tax credits
Tax credits - non-current		584,145
Tax credits | 2023.
Estimates of realization of non-current tax credits
Tax credits - non-current	64,426	22,433
Tax credits | 2024.
Estimates of realization of non-current tax credits
Tax credits - non-current	40,853	8,054
Tax credits | 2025.
Estimates of realization of non-current tax credits
Tax credits - non-current	11,660	R$ 49413
Tax credits | 2026 and after
Estimates of realization of non-current tax credits
Tax credits - non-current	R$ 7661

INCOME AND SOCIAL CONTRIBUTIO_3

INCOME AND SOCIAL CONTRIBUTION TAXES - Reconciliation (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliations of taxes at statutory rates to amounts presented in the Statement of Income
Income (loss) before income taxes	R$ 20272568	R$ 3495678	R$ 1674720
Statutory tax rates	34.00%	34.00%	34.00%
Income and social contribution taxes at statutory rates	R$ 6892673	R$ 1188531	R$ 569405
Tax adjustment with respect to:
Difference in tax rates in foreign companies	403,431	530,715	75,428
Equity in earnings of unconsolidated companies	191,474	51,873	(5,797)
Interest on equity	406,022	98,739	69
Interests on tax lawsuits	551,624
Tax credits and incentives	112,521	31,800	8,852
Deferred tax assets not recognized / Realization, net	482,497	(587,917)	1,097
Other permanent differences, net	31,474	(44,303)	31,923
Income and social contribution taxes	(4,713,630)	(1,107,624)	(457,833)
Current	(4,306,223)	(908,051)	(240,400)
Deferred	R$ 407407	R$ 199573	R$ 217433
Income taxes
Reconciliations of taxes at statutory rates to amounts presented in the Statement of Income
Statutory tax rates	25.00%	25.00%	25.00%
Social contribution taxes
Reconciliations of taxes at statutory rates to amounts presented in the Statement of Income
Statutory tax rates		9.00%	9.00%	9.00%
Foreign subsidiaries | Minimum
Reconciliations of taxes at statutory rates to amounts presented in the Statement of Income
Foreign tax rate	23.00%	23.00%	23.00%
Foreign subsidiaries | Maximum
Reconciliations of taxes at statutory rates to amounts presented in the Statement of Income
Foreign tax rate	35.00%	35.00%	35.00%
Foreign subsidiaries with mainly financial activities
Reconciliations of taxes at statutory rates to amounts presented in the Statement of Income
Foreign tax rate	0.00%	0.00%	0.00%

INCOME AND SOCIAL CONTRIBUTIO_4

INCOME AND SOCIAL CONTRIBUTION TAXES - Changes in net deferred asset (liability) (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	R$ 3331792	R$ 3553806	R$ 3755686
Recognized in income	(407,407)	(199,573)	(217,433)
Others	(3,687)	(86,093)
Effect of selling of subsidiary and Others			(36,226)
Comprehensive Income	(90,365)	63,652	51,779
Balance as of end of the year	2,830,333	3,331,792	3,553,806
Tax loss carryforward
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	1,220,485	1,341,464	1,339,933
Recognized in income	(556,480)	(157,207)	4,781
Others	(24,312)
Effect of selling of subsidiary and Others			(36,226)
Comprehensive Income	10,156	36,228	32,976
Balance as of end of the year	649,849	1,220,485	1,341,464
Social contribution tax losses
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	290,276	350,810	337,258
Recognized in income	(187,814)	(60,534)	13,552
Others	20,625
Balance as of end of the year	123,087	290,276	350,810
Provision for tax, civil and labor liabilities
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	385,463	242,794	270,417
Recognized in income	37,256	140,871	(27,848)
Comprehensive Income	33	1,798	225
Balance as of end of the year	422,752	385,463	242,794
Benefits granted to employees
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	392,257	294,031	286,494
Recognized in income	(35,812)	(6,848)	(29,739)
Comprehensive Income	(57,828)	105,074	37,276
Balance as of end of the year	298,617	392,257	294,031
Other temporary differences
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	501,114	575,719	525,818
Recognized in income	(144,352)	(114,627)	73,067
Comprehensive Income	2,312	40,022	(23,166)
Balance as of end of the year	359,074	501,114	575,719
Deferred exchange variance
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	1,057,541	1,177,428	1,284,377
Recognized in income	511,763	(119,178)	(106,640)
Comprehensive Income	7	(709)	(309)
Balance as of end of the year	1,569,311	1,057,541	1,177,428
Provision for losses
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	35,520	23,618	83,837
Recognized in income	6,576	11,740	(75,142)
Comprehensive Income	(5,832)	162	14,923
Balance as of end of the year	36,264	35,520	23,618
Fair value adjustments on businesses acquired
Breakdown and changes in deferred income and social contribution tax assets and liabilities at statutory tax rates
Balance as of beginning of the year	(550,864)	(452,058)	(372,448)
Recognized in income	(38,544)	106,210	(69,464)
Others		(86,093)
Comprehensive Income	(39,213)	(118,923)	(10,146)
Balance as of end of the year	R$ 628621	R$ 550864	R$ 452058

INCOME AND SOCIAL CONTRIBUTIO_5

INCOME AND SOCIAL CONTRIBUTION TAXES - Classification of net deferred asset (liability) (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
INCOME AND SOCIAL CONTRIBUTION TAXES
Total	R$ 2830333	R$ 3331792	R$ 3553806	R$ 3755686
Non-current assets	2,929,308	3,393,354	4,071,219	3,874,054
Non-current liabilities	R$ 98975	R$ 61562	R$ 517413	R$ 118368

INCOME AND SOCIAL CONTRIBUTIO_6

INCOME AND SOCIAL CONTRIBUTION TAXES - Unrecognized deferred income tax assets (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
INCOME AND SOCIAL CONTRIBUTION TAXES
Tax assets which have no expiration date	R$ 240231	R$ 764845
Foreign subsidiaries
INCOME AND SOCIAL CONTRIBUTION TAXES
Tax credits on capital losses for which no deferred tax asset recognised	1,256,438	1,180,067
Tax losses of state credits for which no deferred tax asset recognised	R$ 1285373	R$ 1623459

INVESTMENTS IN ASSOCIATES AND_3

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Balance at beginning of year	R$ 2271629	R$ 1812399	R$ 1367802
Equity in earnings	563,158	152,569	(17,050)
Other comprehensive income	225,507	358,816	55,038
Capital increase	27,500	42,782	470,990
Capital reduction	(141,095)		(20,344)
Results in operations with subsidiary and joint ventures (note 3.4)	511,514
Dividends/Interest on equity	(117,438)	(94,937)	44,037
Balance at end of year	3,340,775	2,271,629	1,812,399
Investments in North America
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Balance at beginning of year	908,339	681,807	301,272
Equity in earnings	279,948	23,494	(111,637)
Other comprehensive income	173,934	165,479	28,182
Capital increase		42,782	463,990
Results in operations with subsidiary and joint ventures (note 3.4)	511,514
Dividends/Interest on equity	(2,460)	(5,223)
Balance at end of year	1,871,275	908,339	681,807
Investments in South America
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Balance at beginning of year	976,045	748,392	701,233
Equity in earnings	268,291	99,913	66,468
Other comprehensive income	52,278	195,286	21,282
Capital reduction	(141,095)		(20,344)
Dividends/Interest on equity	(84,186)	(67,546)	20,247
Balance at end of year	1,071,333	976,045	748,392
Investments in Special Steel
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Balance at beginning of year	231,152	224,201	213,899
Equity in earnings	28,831	8,900	6,779
Other comprehensive income	710	(1,949)	3,523
Dividends/Interest on equity	(9,025)
Balance at end of year	251,668	231,152	224,201
Other investments
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Balance at beginning of year	156,093	157,999	151,398
Equity in earnings	(13,912)	20,262	21,340
Other comprehensive income	(1,415)		2,051
Capital increase	27,500		7,000
Dividends/Interest on equity	(21,767)	(22,168)	23,790
Balance at end of year	R$ 146499	R$ 156093	R$ 157999

PROPERTY, PLANT AND EQUIPMENT -

PROPERTY, PLANT AND EQUIPMENT - Changes (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	R$ 17252915	R$ 15901493
Impairment of non-financial assets	0	(411,925)	R$ 0
Balance, end of the year	R$ 18741786	R$ 17252915	R$ 15901493
Average rate of capitalized interest	3.30%	3.80%	6.00%
Gross cost
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	R$ 49095210	R$ 43291837	R$ 41072186
Additions	3,026,023	1,650,778	1,746,600
Capitalized interest	32,876	24,622	24,676
Disposals	(535,086)	(888,140)	(367,685)
Business Combination		486,757
Loss of control of subsidiary (note 3.4)	(598,232)
Impairment of non-financial assets		(411,925)
Foreign exchange effect	1,889,141	4,941,281	816,060
Balance, end of the year	52,909,932	49,095,210	43,291,837
Accumulated depreciation
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	(31,842,295)	(27,390,344)	(25,525,705)
Depreciation	(2,057,411)	(1,905,637)	(1,577,182)
Disposals	481,264	860,610	290,935
Loss of control of subsidiary (note 3.4)	422,602
Foreign exchange effect	(1,172,306)	(3,406,924)	(578,392)
Balance, end of the year	(34,168,146)	(31,842,295)	(27,390,344)
Land and buildings
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	4,795,317	4,399,481
Balance, end of the year	4,680,220	4,795,317	4,399,481
Land and buildings | Gross cost
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	9,939,856	8,912,943	8,700,749
Additions	20,661	50,848	28,449
Transfers	224,789	207,551	115,452
Disposals	(41,475)	(226,920)	(54,699)
Business Combination		275,076
Loss of control of subsidiary (note 3.4)	(168,222)
Impairment of non-financial assets		(198,196)
Foreign exchange effect	245,005	918,554	122,992
Balance, end of the year	10,220,614	9,939,856	8,912,943
Land and buildings | Accumulated depreciation
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	(5,144,539)	(4,513,462)	(4,181,805)
Depreciation	(383,122)	(413,252)	(295,615)
Transfers	6,693
Disposals	23,046	223,174	38,826
Loss of control of subsidiary (note 3.4)	84,286
Foreign exchange effect	(126,758)	(440,999)	(74,868)
Balance, end of the year	(5,540,394)	(5,144,539)	(4,513,462)
Machines, equipments, and installations
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	9,366,248	9,189,797
Balance, end of the year	9,554,394	9,366,248	9,189,797
Machines, equipments, and installations | Gross cost
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	34,900,469	31,031,208	29,608,998
Additions	159,387	98,372	76,756
Transfers	1,125,706	695,512	884,161
Disposals	(383,593)	(505,580)	(165,139)
Business Combination		173,453
Loss of control of subsidiary (note 3.4)	(414,955)
Impairment of non-financial assets		(213,729)
Foreign exchange effect	1,476,437	3,621,233	626,432
Balance, end of the year	36,863,451	34,900,469	31,031,208
Machines, equipments, and installations | Accumulated depreciation
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	(25,534,221)	(21,841,411)	(20,366,821)
Depreciation	(1,468,513)	(1,354,559)	(1,136,040)
Transfers	(1,201)		(20)
Disposals	369,173	497,434	145,019
Loss of control of subsidiary (note 3.4)	332,312
Foreign exchange effect	(1,006,607)	(2,835,685)	(483,549)
Balance, end of the year	(27,309,057)	(25,534,221)	(21,841,411)
Data electronic equipment
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	64,468	72,127
Balance, end of the year	97,012	64,468	72,127
Data electronic equipment | Gross cost
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	922,143	802,549	753,078
Additions	21,595	9,765	13,955
Transfers	48,827	13,653	24,037
Disposals	(2,982)	(11,487)	(1,890)
Business Combination		29
Loss of control of subsidiary (note 3.4)	(2,545)
Foreign exchange effect	32,978	107,634	13,369
Balance, end of the year	1,020,016	922,143	802,549
Data electronic equipment | Accumulated depreciation
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	(857,675)	(730,422)	(686,946)
Depreciation	(41,973)	(37,616)	(33,143)
Disposals	2,981	11,169	1,818
Loss of control of subsidiary (note 3.4)	2,542
Foreign exchange effect	(28,879)	(100,806)	(12,151)
Balance, end of the year	(923,004)	(857,675)	(730,422)
Property, plant and equipment under construction
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	2,254,205	1,515,729
Balance, end of the year	3,620,929	2,254,205	1,515,729
Property, plant and equipment under construction | Gross cost
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	2,254,205	1,515,729	1,021,247
Additions	2,649,417	1,369,947	1,506,343
Capitalized interest	32,876	24,622	24,676
Transfers	(1,405,597)	(939,231)	(1,038,693)
Disposals	(19,462)		(40,314)
Business Combination		36,563
Loss of control of subsidiary (note 3.4)	(7,143)
Foreign exchange effect	116,633	246,575	42,470
Balance, end of the year	3,620,929	2,254,205	1,515,729
Other
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	772,677	724,359
Balance, end of the year	789,231	772,677	724,359
Other | Gross cost
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	1,078,537	1,029,408	988,114
Additions	174,963	121,846	121,097
Transfers	6,275	22,515	15,043
Disposals	(87,574)	(144,153)	(105,643)
Business Combination		1,636
Loss of control of subsidiary (note 3.4)	(5,367)
Foreign exchange effect	18,088	47,285	10,797
Balance, end of the year	1,184,922	1,078,537	1,029,408
Other | Accumulated depreciation
PROPERTY, PLANT AND EQUIPMENT
Balance, beginning of the year	(305,860)	(305,049)	(290,133)
Depreciation	(163,803)	(100,210)	(112,384)
Transfers	(5,492)		20
Disposals	86,064	128,833	105,272
Loss of control of subsidiary (note 3.4)	3,462
Foreign exchange effect	(10,062)	(29,434)	(7,824)
Balance, end of the year	R$ 395691	R$ 305860	R$ 305049

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT - Useful Lives (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Buildings | Minimum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	10 years	10 years	10 years
Buildings | Maximum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	33 years	33 years	33 years
Machines, equipments, and installations | Minimum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	10 years	10 years	10 years
Machines, equipments, and installations | Maximum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	20 years	20 years	20 years
Furniture and fixture | Minimum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	5 years	5 years	5 years
Furniture and fixture | Maximum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	10 years	10 years	10 years
Vehicles | Minimum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	3 years	3 years	3 years
Vehicles | Maximum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	5 years	5 years	5 years
Data electronic equipment | Minimum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	2 years 6 months	2 years 6 months	2 years 6 months
Data electronic equipment | Maximum
PROPERTY, PLANT AND EQUIPMENT
Useful lives of property, plant, and equipment	6 years	6 years	6 years

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT - Impairment (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Land, buildings and construction
PROPERTY, PLANT AND EQUIPMENT
Carrying value of impaired assets	R$ 352287	R$ 345087
Machines, equipments, and installations
PROPERTY, PLANT AND EQUIPMENT
Carrying value of impaired assets	622,382	710,476
Property, plant and equipment under construction
PROPERTY, PLANT AND EQUIPMENT
Carrying value of impaired assets	R$ 543726	R$ 543726

GOODWILL - Changes in Goodwill

GOODWILL - Changes in Goodwill (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in goodwill
Goodwill at beginning of the year	R$ 12103519	R$ 9469311	R$ 9112390
Foreign exchange effect	873,906	2,634,208	356,921
Results in operations with subsidiary and joint ventures (note 3,4)	(549,898)
Goodwill at end of the year	12,427,527	12,103,519	9,469,311
Gross cost
Changes in goodwill
Goodwill at beginning of the year	22,421,588	17,445,205	16,783,958
Foreign exchange effect	1,469,190	4,976,383	661,247
Results in operations with subsidiary and joint ventures (note 3,4)	(549,898)
Goodwill at end of the year	23,340,880	22,421,588	17,445,205
Accumulated impairment losses
Changes in goodwill
Goodwill at beginning of the year	(10,318,069)	(7,975,894)	(7,671,568)
Foreign exchange effect	(595,284)	(2,342,175)	(304,326)
Goodwill at end of the year	R$ 10913353	R$ 10318069	R$ 7975894

GOODWILL - Goodwill by segment

GOODWILL - Goodwill by segment (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill by segment
Goodwill	R$ 12427527	R$ 12103519	R$ 9469311	R$ 9112390
Brazil
Goodwill by segment
Goodwill	373,135	373,135	373,135
Special Steel
Goodwill by segment
Goodwill	4,111,619	3,828,841	2,969,752
North America
Goodwill by segment
Goodwill	R$ 7942773	R$ 7901543	R$ 6126424

INTANGIBLE ASSETS - Changes in

INTANGIBLE ASSETS - Changes in intangible assets by type (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
INTANGIBLE ASSETS
Balance at beginning of the year	R$ 622578	R$ 673262	R$ 836096
Foreign exchange effect	30,889	127,770	19,195
Acquisition	166,310	154,250	100,313
Amortization	(310,017)	(332,704)	(282,342)
Balance at end of the year	509,760	622,578	673,262
Supplier relationships
INTANGIBLE ASSETS
Balance at beginning of the year	16,778	21,415	26,719
Amortization	(4,055)	(4,637)	(5,304)
Balance at end of the year	12,723	16,778	21,415
Software development
INTANGIBLE ASSETS
Balance at beginning of the year	373,869	364,812	415,640
Foreign exchange effect	17,609	42,890	6,137
Acquisition	166,310	154,250	100,313
Amortization	(177,674)	(188,083)	(157,278)
Balance at end of the year	R$ 380114	373,869	364,812
Estimated useful lives	5 years
Customers contracts and relationships
INTANGIBLE ASSETS
Balance at beginning of the year	R$ 230704	283,423	387,299
Foreign exchange effect	13,247	83,806	12,586
Amortization	(127,028)	(136,525)	(116,462)
Balance at end of the year	116,923	230,704	283,423
Other intangible assets
INTANGIBLE ASSETS
Balance at beginning of the year	1,227	3,612	6,438
Foreign exchange effect	33	1,074	472
Amortization	R$ 1260	(3,459)	(3,298)
Balance at end of the year		R$ 1227	R$ 3612
Estimated useful lives	5 years
Minimum | Supplier relationships
INTANGIBLE ASSETS
Estimated useful lives	5 years
Minimum | Customers contracts and relationships
INTANGIBLE ASSETS
Estimated useful lives	5 years
Maximum | Supplier relationships
INTANGIBLE ASSETS
Estimated useful lives	20 years
Maximum | Customers contracts and relationships
INTANGIBLE ASSETS
Estimated useful lives	20 years

INTANGIBLE ASSETS - Intangible

INTANGIBLE ASSETS - Intangible assets by segment (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Composition of other intangible assets by segment
Other intangible assets	R$ 509760	R$ 622578	R$ 673262	R$ 836096
Brazil Operation
Composition of other intangible assets by segment
Other intangible assets	207,053	220,303	238,243
Special Steel Operation
Composition of other intangible assets by segment
Other intangible assets	130,719	156,557	132,934
South America Operation
Composition of other intangible assets by segment
Other intangible assets	1,039	1,534	1,729
North America Operation
Composition of other intangible assets by segment
Other intangible assets	R$ 170949	R$ 244184	R$ 300356

LEASING - Right-of-use assets (

LEASING - Right-of-use assets (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Summary of changes in the Right-of-use assets
Balance at beginning of the year	R$ 815311
Balance at end of the year	861,744	R$ 815311
Gross cost
Summary of changes in the Right-of-use assets
Balance at beginning of the year	1,281,690	987,135	R$ 836368
Additions	221,046	234,823	143,521
Disposals	(137,785)	(30,605)	(35,555)
Remeasurements	106,391	9,693	32,212
Loss of control of subsidiary (note 3.4)	(3,196)
Foreign exchange effect	30,690	80,644	10,589
Balance at end of the year	1,498,836	1,281,690	987,135
Accumulated impairment losses
Summary of changes in the Right-of-use assets
Balance at beginning of the year	(466,379)	(209,821)
Depreciation	(291,134)	(260,761)	(214,771)
Disposals	133,631	23,081	6,588
Loss of control of subsidiary (note 3.4)	2,090
Foreign exchange effect	(15,300)	(18,878)	(1,638)
Balance at end of the year	(637,092)	(466,379)	(209,821)
Right-of-use assets.
Summary of changes in the Right-of-use assets
Balance at beginning of the year	815,311	777,314
Balance at end of the year	861,744	815,311	777,314
Land and buildings | Gross cost
Summary of changes in the Right-of-use assets
Balance at beginning of the year	301,940	283,994	243,250
Additions	48,504	5,670	14,062
Disposals	(5,621)	(14,583)	(10,493)
Remeasurements	40,024	111	33,322
Foreign exchange effect	8,152	26,748	3,853
Balance at end of the year	392,999	301,940	283,994
Land and buildings | Accumulated impairment losses
Summary of changes in the Right-of-use assets
Balance at beginning of the year	(97,619)	(49,483)
Depreciation	(59,284)	(51,451)	(50,080)
Disposals	3,668	8,601	1,330
Foreign exchange effect	(3,574)	(5,286)	(733)
Balance at end of the year	(156,809)	(97,619)	(49,483)
Land and buildings | Right-of-use assets.
Summary of changes in the Right-of-use assets
Balance at beginning of the year	204,321	234,511
Balance at end of the year	236,190	204,321	234,511
Machines, equipments, and installations | Gross cost
Summary of changes in the Right-of-use assets
Balance at beginning of the year	738,330	533,286	436,401
Additions	135,652	185,116	117,653
Disposals	(109,947)	(14,846)	(22,993)
Remeasurements	55,866	(3,035)	(2,346)
Loss of control of subsidiary (note 3.4)	(2,894)
Foreign exchange effect	13,828	37,809	4,571
Balance at end of the year	830,835	738,330	533,286
Machines, equipments, and installations | Accumulated impairment losses
Summary of changes in the Right-of-use assets
Balance at beginning of the year	(284,656)	(123,277)
Depreciation	(186,300)	(166,741)	(127,399)
Disposals	108,532	13,453	4,250
Loss of control of subsidiary (note 3.4)	1,860
Foreign exchange effect	(7,889)	(8,091)	(128)
Balance at end of the year	(368,453)	(284,656)	(123,277)
Machines, equipments, and installations | Right-of-use assets.
Summary of changes in the Right-of-use assets
Balance at beginning of the year	453,674	410,009
Balance at end of the year	462,382	453,674	410,009
Data electronic equipment | Gross cost
Summary of changes in the Right-of-use assets
Balance at beginning of the year	120,476	107,413	106,787
Additions	291	175	742
Disposals	(151)		(162)
Remeasurements	6,456	12,548
Loss of control of subsidiary (note 3.4)	(302)
Foreign exchange effect	111	340	46
Balance at end of the year	126,881	120,476	107,413
Data electronic equipment | Accumulated impairment losses
Summary of changes in the Right-of-use assets
Balance at beginning of the year	(30,925)	(15,396)
Depreciation	(13,800)	(15,459)	(15,419)
Disposals	97		32
Loss of control of subsidiary (note 3.4)	230
Foreign exchange effect	(45)	(70)	(9)
Balance at end of the year	(44,443)	(30,925)	(15,396)
Data electronic equipment | Right-of-use assets.
Summary of changes in the Right-of-use assets
Balance at beginning of the year	89,551	92,017
Balance at end of the year	82,438	89,551	92,017
Other | Gross cost
Summary of changes in the Right-of-use assets
Balance at beginning of the year	120,944	62,442	49,930
Additions	36,599	43,862	11,064
Disposals	(22,066)	(1,176)	(1,907)
Remeasurements	4,045	69	1,236
Foreign exchange effect	8,599	15,747	2,119
Balance at end of the year	148,121	120,944	62,442
Other | Accumulated impairment losses
Summary of changes in the Right-of-use assets
Balance at beginning of the year	(53,179)	(21,665)
Depreciation	(31,750)	(27,110)	(21,873)
Disposals	21,334	1,027	976
Foreign exchange effect	(3,792)	(5,431)	(768)
Balance at end of the year	(67,387)	(53,179)	(21,665)
Other | Right-of-use assets.
Summary of changes in the Right-of-use assets
Balance at beginning of the year	67,765	40,777
Balance at end of the year	R$ 80734	R$ 67765	R$ 40777

LEASING - Leasing payable (Deta

LEASING - Leasing payable (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leasing payable
Leasing payable	R$ 918365	R$ 856474
Current	275,086	231,703
Non-current	643,279	624,771
Financial expense for the year	R$ 68789	R$ 61727
Minimum
Leasing payable
Discount rate	3.50%	3.70%
Maximum
Leasing payable
Discount rate	16.30%	10.80%
2021
Leasing payable
Leasing payable		R$ 231703
2022
Leasing payable
Leasing payable	R$ 275086	193,314
2023
Leasing payable
Leasing payable	211,576	140,019
2024
Leasing payable
Leasing payable	127,718	90,812
2025
Leasing payable
Leasing payable	88,682	65,561
2026
Leasing payable
Leasing payable	R$ 215303	R$ 135065

TRADE ACCOUNTS PAYABLE (Details

TRADE ACCOUNTS PAYABLE (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
TRADE ACCOUNTS PAYABLE
Trade accounts payable	R$ 8017140	R$ 5437953
Domestic market
TRADE ACCOUNTS PAYABLE
Trade accounts payable	5,230,270	3,941,924
Debtor risk
TRADE ACCOUNTS PAYABLE
Trade accounts payable	807,915	726,045
Intercompany
TRADE ACCOUNTS PAYABLE
Trade accounts payable	47,597	8,958
Imports
TRADE ACCOUNTS PAYABLE
Trade accounts payable	R$ 1931358	R$ 761026

SHORT-TERM DEBT AND LONG-TERM_3

SHORT-TERM DEBT AND LONG-TERM DEBT - Summary (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
LOANS AND FINANCING
Total Loans and Financing	R$ 11109786	R$ 14612934
Current	234,537	1,424,043
Non-current	R$ 10875249	13,188,891
Weighted average
LOANS AND FINANCING
Annual charges (as a percent)	5.76%
Working capital
LOANS AND FINANCING
Total Loans and Financing	R$ 480905	1,178,557
Financing of property, plant and equipment and others
LOANS AND FINANCING
Total Loans and Financing	102,232	333,797
Ten/Thirty Year Bonds
LOANS AND FINANCING
Total Loans and Financing	R$ 10526649	R$ 13100580

SHORT-TERM DEBT AND LONG-TERM_4

SHORT-TERM DEBT AND LONG-TERM DEBT - Principal and Interest (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
SHORT-TERM DEBT AND LONG-TERM DEBT
Principal amount of loans and Financing	R$ 10952983	R$ 14413188
Interest accrued of loans and Financing	156,803	199,746
Total Loans and Financing	R$ 11109786	R$ 14612934

SHORT-TERM DEBT AND LONG-TERM_5

SHORT-TERM DEBT AND LONG-TERM DEBT - By Currency (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
LOANS AND FINANCING
Total Loans and Financing	R$ 11109786	R$ 14612934
Brazilian Real (BRL)
LOANS AND FINANCING
Total Loans and Financing	461,187	1,245,988
U.S. Dollar (USD)
LOANS AND FINANCING
Total Loans and Financing	10,535,532	R$ 13366946
Other currencies
LOANS AND FINANCING
Total Loans and Financing	R$ 113067

SHORT-TERM DEBT AND LONG-TERM_6

SHORT-TERM DEBT AND LONG-TERM DEBT - Amortization schedules (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Amortization schedules of long-term loans and financing
Long-term debt	R$ 10875249	R$ 13188891
2022
Amortization schedules of long-term loans and financing
Long-term debt		5,210
2023
Amortization schedules of long-term loans and financing
Long-term debt	1,115,211	2,108,324
2024
Amortization schedules of long-term loans and financing
Long-term debt	878,044	1,813,225
2025
Amortization schedules of long-term loans and financing
Long-term debt	405,788	682,422
2026
Amortization schedules of long-term loans and financing
Long-term debt	R$ 8476206	R$ 8579710

SHORT-TERM DEBT AND LONG-TERM_7

SHORT-TERM DEBT AND LONG-TERM DEBT - Additional disclosures (Details) R$ in Thousands, $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2021BRL (R$)	Dec. 31, 2021BRL (R$)	Dec. 31, 2020BRL (R$)	Dec. 31, 2019BRL (R$)	Dec. 31, 2021USD ($)	Oct. 31, 2019BRL (R$)
LOANS AND FINANCING
Loans and financing	R$ 11109786	R$ 11109786	R$ 14612934
Principal amount	2,208,000	2,208,000			$ 395.8
IFRS, Debt Instrument, Face Amount	R$ 2208000	2,208,000			395.8
Number of Bilateral Loans Early Settled	2
Repayments of borrowings, classified as financing activities	R$ 775000	5,116,621	5,084,028	R$ 4885083
Working capital
LOANS AND FINANCING
Loans and financing	480,905	480,905	R$ 1178557
Global Credit Line
LOANS AND FINANCING
Amount of outstanding balance credit facility	474,000	474,000			$ 85
Maximum borrowing capacity	R$ 4464000	R$ 4464000				R$ 800000

DEBENTURES - Summary (Details)

DEBENTURES - Summary (Details) R$ in Thousands	12 Months Ended
	Dec. 31, 2021BRL (R$)instrument	Dec. 31, 2020BRL (R$)
DEBENTURES
Total Debentures	R$ 2929907	R$ 2902417
Current debentures	1,531,956	7,463
Non-current debentures	R$ 1397951	2,894,954
14th
DEBENTURES
Quantity Issued | instrument	20,000
Quantity Held in treasury | instrument	20,000
15th
DEBENTURES
Quantity Issued | instrument	1,500,000
Total Debentures	R$ 1513958	1,500,985
16th - A
DEBENTURES
Quantity Issued | instrument	600,000
Total Debentures	R$ 607031	600,759
16th - B
DEBENTURES
Quantity Issued | instrument	800,000
Total Debentures	R$ 808918	R$ 800673

DEBENTURES - Amortization sched

DEBENTURES - Amortization schedule (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
DEBENTURES
Non-current debentures	R$ 1397951	R$ 2894954
2022
DEBENTURES
Non-current debentures		1,497,760
2023
DEBENTURES
Non-current debentures	599,390	598,960
2026
DEBENTURES
Non-current debentures	R$ 798561	R$ 798234

DEBENTURES - Additional disclos

DEBENTURES - Additional disclosures (Details) R$ in Millions, $ in Millions	Dec. 31, 2021USD ($)	Dec. 31, 2021BRL (R$)	Dec. 31, 2020
DEBENTURES
Face amount	$ 395.8	R$ 2208.0
Liabilities, Debentures | CDI | Average
DEBENTURES
Interest rate (as a percent)	4.62%	4.62%	2.90%

FINANCIAL INSTRUMENTS - Fair va

FINANCIAL INSTRUMENTS - Fair value of financial instruments (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
FINANCIAL INSTRUMENTS
Financial assets	R$ 3882966	R$ 4357884
Financial liabilities	15,622,107	19,838,551
Liabilities, Loans and Financing
FINANCIAL INSTRUMENTS
Financial liabilities	11,109,786	14,612,934
Financial liabilities, at fair value	12,630,940	17,014,948
Liabilities, Debentures
FINANCIAL INSTRUMENTS
Financial liabilities	2,929,907	2,902,417
Financial liabilities, at fair value	2,911,424	2,775,619
Liabilities, Related parties
FINANCIAL INSTRUMENTS
Financial liabilities	24,648	22,855
Financial liabilities, at fair value	24,648	22,855
Fair value of derivatives
FINANCIAL INSTRUMENTS
Financial liabilities		971
Financial liabilities, at fair value		971
Liabilities, Other current liabilities
FINANCIAL INSTRUMENTS
Financial liabilities	1,090,396	797,082
Financial liabilities, at fair value	1,090,396	797,082
Liabilities, Other non-current liabilities
FINANCIAL INSTRUMENTS
Financial liabilities	421,873	514,886
Financial liabilities, at fair value	421,873	514,886
Obligations with FIDC (current liabilities)
FINANCIAL INSTRUMENTS
Financial liabilities	45,497	944,513
Financial liabilities, at fair value	45,497	944,513
Obligations with FIDC (non-current liabilities)
FINANCIAL INSTRUMENTS
Financial liabilities		42,893
Financial liabilities, at fair value		42,893
Assets, Short-term investments
FINANCIAL INSTRUMENTS
Financial assets	2,626,212	3,041,143
Financial assets, at fair value	2,626,212	3,041,143
Assets, Related parties
FINANCIAL INSTRUMENTS
Financial assets	2,678	134,354
Financial assets, at fair value	2,678	134,354
Assets, Fair value of derivatives
FINANCIAL INSTRUMENTS
Financial assets	3,246
Financial assets, at fair value	3,246
Assets, Other current assets
FINANCIAL INSTRUMENTS
Financial assets	679,193	591,523
Financial assets, at fair value	679,193	591,523
Assets, Other non-current assets
FINANCIAL INSTRUMENTS
Financial assets	571,637	590,864
Financial assets, at fair value	R$ 571637	R$ 590864

FINANCIAL INSTRUMENTS - Capital

FINANCIAL INSTRUMENTS - Capital management risk (Details) - Capital management risk R$ in Billions	12 Months Ended
	Dec. 31, 2021BRL (R$)
FINANCIAL INSTRUMENTS
Average maturity	6 years
Minimum
FINANCIAL INSTRUMENTS
Net debt/EBITDA	1
Maximum
FINANCIAL INSTRUMENTS
Net debt/EBITDA	1.5
Gross debt limit	R$ 12

FINANCIAL INSTRUMENTS - Liquidi

FINANCIAL INSTRUMENTS - Liquidity risk (Details) - Liquidity risk - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	R$ 30977914	R$ 32800346
Less than 1 year
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	11,806,631	9,377,095
1-3 years
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	3,043,551	5,724,459
4-5 years
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	2,419,579	3,563,916
2026
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	13,708,153	14,134,876
Liabilities, Trade accounts payable
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	8,017,140	5,437,953
Liabilities, Trade accounts payable | Less than 1 year
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	8,017,140	5,437,953
Liabilities, Loans and Financing
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	17,885,671	21,962,204
Liabilities, Loans and Financing | Less than 1 year
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	851,225	2,131,402
Liabilities, Loans and Financing | 1-3 years
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	2,227,608	3,465,577
Liabilities, Loans and Financing | 4-5 years
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	2,308,361	3,531,312
Liabilities, Loans and Financing | 2026
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	12,498,477	12,833,913
Liabilities, Debentures
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	3,492,689	3,077,960
Liabilities, Debentures | Less than 1 year
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	1,802,373	66,145
Liabilities, Debentures | 1-3 years
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	780,537	2,174,184
Liabilities, Debentures | 4-5 years
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	111,218	32,604
Liabilities, Debentures | 2026
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	798,561	805,027
Liabilities, Related parties
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	24,648	22,855
Liabilities, Related parties | 2026
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	24,648	22,855
Liabilities, Obligation with FIDC
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	45,497	987,406
Liabilities, Obligation with FIDC | Less than 1 year
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	45,497	944,513
Liabilities, Obligation with FIDC | 1-3 years
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations		42,893
Liabilities, Other current liabilities
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	1,090,396	797,082
Liabilities, Other current liabilities | Less than 1 year
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	1,090,396	797,082
Liabilities, Other non-current liabilities
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	421,873	514,886
Liabilities, Other non-current liabilities | 1-3 years
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	35,406	41,805
Liabilities, Other non-current liabilities | 2026
Disclosure of maturity analysis for financial liabilities held for managing liquidity risk
Contractual obligations	R$ 386467	R$ 473081

FINANCIAL INSTRUMENTS - Sensiti

FINANCIAL INSTRUMENTS - Sensitivity analysis (Details) R$ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021BRL (R$)	Dec. 31, 2021USD ($)	Dec. 31, 2020BRL (R$)
Interest Rate Swap
Sensitivity analysis
Impact on income statement based on change in assumption	R$ 55964		R$ 85147
Foreign currency risk
Sensitivity analysis
Percentage of change	5.00%	5.00%	5.00%
Impact on income statement based on change in assumption	R$ 19036		R$ 15057
Impact on income statement based on change in assumption, after effects of changes in net investment hedge	R$ 19036		R$ 15047
Foreign currency risk | Interest Rate Swap
Sensitivity analysis
Interest rate change (as a percent)	5.00%	5.00%	5.00%
Foreign currency risk | Non-Deliverable Forwards
Sensitivity analysis
Percentage of change	5.00%	5.00%	5.00%
Impact on income statement based on change in assumption	R$ 0		R$ 3703
Interest rate risk
Sensitivity analysis
Interest rate change (as a percent)	0.10%	0.10%	0.10%
Impact on income statement based on change in assumption	R$ 55964		R$ 85147
Interest rate risk | Interest Rate Swap
Sensitivity analysis
Impact on income statement based on change in assumption			R$ 3703
Products sold price risk
Sensitivity analysis
Percentage of change	1.00%	1.00%	1.00%
Impact on income statement based on change in assumption	R$ 783451		R$ 438147
Products sold price risk | Cross currency swap
Sensitivity analysis
Impact on income statement based on change in assumption			R$ 438147
Raw materials and commodity price risk
Sensitivity analysis
Percentage of change	1.00%	1.00%	1.00%
Impact on income statement based on change in assumption	R$ 437210		R$ 269454
Raw materials and commodity price risk | Interest rate swaps and foreign currency swaps
Sensitivity analysis
Impact on income statement based on change in assumption			269,454
Commodity contracts
Sensitivity analysis
Interest rate change (as a percent)	5.00%	5.00%
Impact on income statement based on change in assumption | $		$ 4,892
Impact on income statement based on change in assumption, after effects of changes in net investment hedge			R$ 0
Commodity contracts | Non-Deliverable Forwards
Sensitivity analysis
Impact on income statement based on change in assumption	R$ 4892

FINANCIAL INSTRUMENTS - Financi

FINANCIAL INSTRUMENTS - Financial instruments per category (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
FINANCIAL INSTRUMENTS
Financial assets	R$ 3882966	R$ 4357884
Financial liabilities	15,622,107	19,838,551
Financial income (expenses) from assets	1,437,731	597,027
Financial income (expenses) from liabilities	(2,188,185)	(2,295,734)
Loans and Financing
FINANCIAL INSTRUMENTS
Financial liabilities	11,109,786	14,612,934
Debentures
FINANCIAL INSTRUMENTS
Financial liabilities	2,929,907	2,902,417
Related parties
FINANCIAL INSTRUMENTS
Financial liabilities	24,648	22,855
Obligations with FIDC (current liabilities)
FINANCIAL INSTRUMENTS
Financial liabilities	45,497	944,513
Other current liabilities
FINANCIAL INSTRUMENTS
Financial liabilities	1,090,396	797,082
Other non-current liabilities
FINANCIAL INSTRUMENTS
Financial liabilities	421,873	514,886
Fair value of derivatives
FINANCIAL INSTRUMENTS
Financial liabilities		971
Liabilities, Obligations with FIDC (non-current liabilities)
FINANCIAL INSTRUMENTS
Financial liabilities		42,893
Liabilities at market value with gains and losses recognized in income
FINANCIAL INSTRUMENTS
Financial liabilities		971
Financial income (expenses) from liabilities	(10,421)	(1,632)
Liabilities at market value with gains and losses recognized in income | Fair value of derivatives
FINANCIAL INSTRUMENTS
Financial liabilities		971
Other financial liabilities at amortized cost
FINANCIAL INSTRUMENTS
Financial liabilities	15,622,107	19,837,580
Financial income (expenses) from liabilities	(2,177,764)	(2,294,102)
Other financial liabilities at amortized cost | Loans and Financing
FINANCIAL INSTRUMENTS
Financial liabilities	11,109,786	14,612,934
Other financial liabilities at amortized cost | Debentures
FINANCIAL INSTRUMENTS
Financial liabilities	2,929,907	2,902,417
Other financial liabilities at amortized cost | Related parties
FINANCIAL INSTRUMENTS
Financial liabilities	24,648	22,855
Other financial liabilities at amortized cost | Obligations with FIDC (current liabilities)
FINANCIAL INSTRUMENTS
Financial liabilities	45,497	944,513
Other financial liabilities at amortized cost | Other current liabilities
FINANCIAL INSTRUMENTS
Financial liabilities	1,090,396	797,082
Other financial liabilities at amortized cost | Other non-current liabilities
FINANCIAL INSTRUMENTS
Financial liabilities	421,873	514,886
Other financial liabilities at amortized cost | Liabilities, Obligations with FIDC (non-current liabilities)
FINANCIAL INSTRUMENTS
Financial liabilities		42,893
Short-term investments
FINANCIAL INSTRUMENTS
Financial assets	2,626,212	3,041,143
Fair value of derivatives
FINANCIAL INSTRUMENTS
Financial assets	3,246
Related parties
FINANCIAL INSTRUMENTS
Financial assets	2,678	134,354
Other current assets
FINANCIAL INSTRUMENTS
Financial assets	679,193	591,523
Other non-current assets
FINANCIAL INSTRUMENTS
Financial assets	571,637	590,864
Financial asset at amortised cost
FINANCIAL INSTRUMENTS
Financial assets	1,165,088	1,256,741
Financial income (expenses) from assets	1,226,743	487,631
Financial asset at amortised cost | Fair value of derivatives
FINANCIAL INSTRUMENTS
Financial assets	3,246
Financial asset at amortised cost | Related parties
FINANCIAL INSTRUMENTS
Financial assets	2,678	134,354
Financial asset at amortised cost | Other current assets
FINANCIAL INSTRUMENTS
Financial assets	679,193	591,523
Financial asset at amortised cost | Other non-current assets
FINANCIAL INSTRUMENTS
Financial assets	479,971	530,864
Assets at fair value with gains and losses recognized in income
FINANCIAL INSTRUMENTS
Financial assets	2,717,878	3,101,143
Financial income (expenses) from assets	210,988	109,396
Assets at fair value with gains and losses recognized in income | Short-term investments
FINANCIAL INSTRUMENTS
Financial assets	2,626,212	3,041,143
Assets at fair value with gains and losses recognized in income | Other non-current assets
FINANCIAL INSTRUMENTS
Financial assets	R$ 91666	R$ 60000

FINANCIAL INSTRUMENTS - Swap Co

FINANCIAL INSTRUMENTS - Swap Contracts (Details) R$ in Thousands, $ in Millions	Dec. 31, 2021BRL (R$)USD ($)	Dec. 31, 2020BRL (R$)USD ($)
Swap Contracts
Amount receivable	R$ 3246
Amount payable		R$ 971
Interest Rate Swap | Maturity in 2022
Swap Contracts
Notional value | $	5.3	9.9
Amount receivable	R$ 3246
Amount payable		R$ 971

FINANCIAL INSTRUMENTS - Effecti

FINANCIAL INSTRUMENTS - Effectiveness testing for derivatives (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
FINANCIAL INSTRUMENTS
Current assets	R$ 3246	R$ 0
Total derivative assets	3,246
Current liabilities	0	971
Total derivative liabilities		971
Net Income
Gains on financial instruments	28,349	858
Losses on financial instruments	(10,421)	(1,632)
Total gains (losses) on financial instruments	17,928	(774)	R$ 15118
Other comprehensive income
Gains (Losses) on financial instruments	1,907	(1,972)	R$ 3502
Total gains (Losses) on financial instruments	R$ 1907	R$ 1972

FINANCIAL INSTRUMENTS - Net inv

FINANCIAL INSTRUMENTS - Net investment hedge (Details) R$ in Thousands, $ in Billions	12 Months Ended			24 Months Ended
	Dec. 31, 2021BRL (R$)	Dec. 31, 2020BRL (R$)	Dec. 31, 2019BRL (R$)	Dec. 31, 2021USD ($)
Net investment hedge
Gain (loss) on net investment hedge, recognized in OCI	R$ 695102	R$ 2504914	R$ 322948
Ten/Thirty Years Bonds
Net investment hedge
Gain (loss) on net investment hedge, recognized in income		R$ 2504914000
Ten/Thirty Years Bonds | Hedges of net investment in foreign operations
Net investment hedge
Gain (loss) on net investment hedge, recognized in OCI | $				$ 1.4
Gain (loss) on net investment hedge, recognized in income	R$ 695102000

FINANCIAL INSTRUMENTS - Measure

FINANCIAL INSTRUMENTS - Measurement of fair value (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
FINANCIAL INSTRUMENTS
Total financial assets	R$ 3882966	R$ 4357884
Total financial liabilities	15,622,107	19,838,551
Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Total financial assets	3,882,966	4,357,884
Total financial liabilities	15,622,107	19,838,551
Liabilities, Short-term debts | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities	234,537	1,424,043
Liabilities, Long-term debt | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial liabilities	10,875,249	13,188,891
Liabilities, Debentures
FINANCIAL INSTRUMENTS
Total financial liabilities	2,929,907	2,902,417
Liabilities, Debentures | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities	1,531,956	7,463
Non-current financial liabilities	1,397,951	2,894,954
Fair value of derivatives
FINANCIAL INSTRUMENTS
Total financial liabilities		971
Fair value of derivatives | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities		971
Liabilities, Related parties
FINANCIAL INSTRUMENTS
Total financial liabilities	24,648	22,855
Liabilities, Related parties | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial liabilities	24,648	22,855
Liabilities, Obligation with FIDC | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities	45,497	944,513
Non-current financial liabilities		42,893
Liabilities, Obligations with FIDC (non-current liabilities)
FINANCIAL INSTRUMENTS
Total financial liabilities		42,893
Liabilities, Other current liabilities
FINANCIAL INSTRUMENTS
Total financial liabilities	1,090,396	797,082
Liabilities, Other current liabilities | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities	1,090,396	797,082
Liabilities, Other non-current liabilities
FINANCIAL INSTRUMENTS
Total financial liabilities	421,873	514,886
Liabilities, Other non-current liabilities | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial liabilities	421,873	514,886
Assets, Short-term investments
FINANCIAL INSTRUMENTS
Total financial assets	2,626,212	3,041,143
Assets, Short-term investments | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial assets	2,626,212	3,041,143
Assets, Fair value of derivatives
FINANCIAL INSTRUMENTS
Total financial assets	3,246
Assets, Fair value of derivatives | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial assets	3,246
Assets, Related parties
FINANCIAL INSTRUMENTS
Total financial assets	2,678	134,354
Assets, Related parties | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial assets	2,678	134,354
Assets, Other current assets
FINANCIAL INSTRUMENTS
Total financial assets	679,193	591,523
Assets, Other current assets | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial assets	679,193	591,523
Assets, Other non-current assets
FINANCIAL INSTRUMENTS
Total financial assets	571,637	590,864
Assets, Other non-current assets | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial assets	571,637	590,864
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Total financial assets	3,882,966	4,357,884
Total financial liabilities	15,622,107	19,838,551
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Liabilities, Short-term debts | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities	234,537	1,424,043
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Liabilities, Long-term debt | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial liabilities	10,875,249	13,188,891
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Liabilities, Debentures | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities	1,531,956	7,463
Non-current financial liabilities	1,397,951	2,894,954
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Fair value of derivatives | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities		971
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Liabilities, Related parties | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial liabilities	24,648	22,855
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Liabilities, Obligation with FIDC | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities	45,497	944,513
Non-current financial liabilities		42,893
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Liabilities, Other current liabilities | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial liabilities	1,090,396	797,082
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Liabilities, Other non-current liabilities | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial liabilities	421,873	514,886
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Assets, Short-term investments | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial assets	2,626,212	3,041,143
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Assets, Fair value of derivatives | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial assets	3,246
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Assets, Related parties | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial assets	2,678	134,354
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Assets, Other current assets | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Current financial assets	679,193	591,523
Quoted Prices in Non-Active Markets for Similar Assets (Level 2) | Assets, Other non-current assets | Fair Value - Measured at Fair Value on a Recurring Basis
FINANCIAL INSTRUMENTS
Non-current financial assets	R$ 571637	R$ 590864

FINANCIAL INSTRUMENTS - Changes

FINANCIAL INSTRUMENTS - Changes in liabilities from Cash Flow from financing activities (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related parties, net
Changes in liabilities from Cash flow from financing activities
Beginning of year	R$ 111499	R$ 95445	R$ 26589
Cash transactions
Proceeds/(Repayment) from financing activities	139,556	(7,777)	(64,089)
Non cash transactions
Interest expense on loans and Interest on loans with related parties	(6,089)	(8,277)	(4,767)
Exchange variation and others	2
End of year	21,970	(111,499)	(95,445)
Leasing payable
Changes in liabilities from Cash flow from financing activities
Beginning of year	856,474	804,269	836,368
Cash transactions
Proceeds/(Repayment) from financing activities	(275,944)	(247,914)	(161,824)
Interest paid on loans and financing	(68,699)	(61,727)	(83,620)
Non cash transactions
Interest expense on loans and Interest on loans with related parties	68,699	61,727	83,620
Exchange variation and others	337,835	300,119	129,725
End of year	918,365	856,474	804,269
Debt, Debentures and Losses/Gains on financial instruments, net - Derivative instruments
Changes in liabilities from Cash flow from financing activities
Beginning of year	17,516,322	16,047,021	14,878,542
Cash transactions
Proceeds/(Repayment) from financing activities	(4,506,918)	(1,963,283)	700,490
Interest paid on loans and financing	(1,100,826)	(1,079,981)	(945,027)
Non cash transactions
Interest expense on loans and Interest on loans with related parties	1,059,841	1,022,460	938,120
Exchange variation and others	1,068,028	3,490,105	474,896
End of year	R$ 14036447	R$ 17516322	R$ 16047021

TAXES PAYABLE (Details)

TAXES PAYABLE (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
TAXES PAYABLE
Payroll charges	R$ 136428	R$ 100301
ICMS (state VAT)	92,320	99,430
COFINS (tax on revenue)	26,139	51,444
IPI (federal VAT)	41,474	38,153
IVA (value-added tax) and others	251,812	310,761
Taxes payable	R$ 548173	R$ 600089

TAX, CIVIL AND LABOR CLAIMS A_3

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS - Provisions (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other provisions disclosures
Provision for tax, civil and labor liabilities	R$ 1741026	R$ 1172511
Legal proceedings provision
Other provisions disclosures
Provision for tax, civil and labor liabilities	1,741,026	1,172,511	R$ 809299	R$ 770305
Tax Provisions
Other provisions disclosures
Provision for tax, civil and labor liabilities	1,270,473	706,104
Labor provisions
Other provisions disclosures
Provision for tax, civil and labor liabilities	435,803	428,821
Civil provisions
Other provisions disclosures
Provision for tax, civil and labor liabilities	R$ 34750	R$ 37586

TAX, CIVIL AND LABOR CLAIMS A_4

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS - Changes in Provisions (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in the tax, labor and civil provisions :
Balance at the beginning of the year	R$ 1172511
Balance at the end of the year	1,741,026	R$ 1172511
Legal proceedings provision
Changes in the tax, labor and civil provisions :
Balance at the beginning of the year	1,172,511	809,299	R$ 770305
Additions	801,412	559,513	249,868
Interests	42,435	104,473	70,788
Reversal of accrued amounts	(276,251)	(304,678)	(282,239)
Foreign exchange effect on provisions in foreign currency	919	3,904	577
Balance at the end of the year	R$ 1741026	R$ 1172511	R$ 809299

TAX, CIVIL AND LABOR CLAIMS A_5

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS - Tax contingencies (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Apr. 08, 2021	Jul. 07, 2020	Dec. 27, 2019	May 17, 2019
Gerdau Acominas S.A., Gerdau Acos Longos S.A., and Gerdau Acos Especiais S.A. | Goodwill Deductibility | Administrative collection
Contingencies
Estimated financial effect of contingent liabilities	R$ 8221463
Gerdau Acos Longos S.A. and Gerdau Acominas S.A. | Goodwill Deductibility | Voluntary Appeal, Filed
Contingencies
Estimated financial effect of contingent liabilities	5,456,742
Gerdau Acos Longos S.A. | Pending
Contingencies
Estimated financial effect of contingent liabilities	502,804
Gerdau Acos Longos S.A. | Goodwill Deductibility | Embargo to Enforcement, Filed
Contingencies
Estimated financial effect of contingent liabilities	402,857
Gerdau Acos Longos S.A. | Goodwill Deductibility | Motion for clarification filed
Contingencies
Estimated financial effect of contingent liabilities	299,937
Gerdau Acos Longos S.A. | Goodwill Deductibility | Notice of judgment received
Contingencies
Estimated financial effect of contingent liabilities	324,014
Gerdau Acos Longos S.A. | Goodwill Deductibility | Pending
Contingencies
Estimated financial effect of contingent liabilities	575,631	R$ 83699
Gerdau Acos Longos S.A. | Goodwill Deductibility | Special Appeal, Filed
Contingencies
Estimated financial effect of contingent liabilities	4,390	R$ 177218
Gerdau Acos Longos S.A. | Goodwill Deductibility | Voluntary Appeal, Filed
Contingencies
Estimated financial effect of contingent liabilities	145,141
Gerdau Acos Especiais S.A. | Goodwill Deductibility | Special Appeal, Filed
Contingencies
Estimated financial effect of contingent liabilities	110,462
Gerdau Acos Especiais S.A. | Goodwill Deductibility | Special appeal, pending
Contingencies
Estimated financial effect of contingent liabilities	138,568
Tax contingencies | IPI credit on inputs | Pending
Contingencies
Estimated financial effect of contingent liabilities	481,501
Tax contingencies | Non-approval of compensation of credits on inputs | Pending
Contingencies
Estimated financial effect of contingent liabilities	1,513,111
Tax contingencies | Social security contributions. | Pending
Contingencies
Estimated financial effect of contingent liabilities	135,625
Tax contingencies | Other Taxes | Pending
Contingencies
Estimated financial effect of contingent liabilities	671,593
Tax contingencies | Goodwill Deductibility | Pending
Contingencies
Estimated financial effect of contingent liabilities	471,829			R$ 149996
Tax contingencies | Goodwill Deductibility | Special Appeal, Filed
Contingencies
Estimated financial effect of contingent liabilities	25,090
Tax contingencies | Goodwill Deductibility | Voluntary Appeal, Pending
Contingencies
Estimated financial effect of contingent liabilities	217,117
Tax contingencies | Goodwill Deductibility | Voluntary Appeal, Filed
Contingencies
Estimated financial effect of contingent liabilities	79,626
Tax contingencies | Gerdau Acos Longos S.A. and Gerdau Acominas S.A. | ICMS (State Value Added Tax) | Pending
Contingencies
Estimated financial effect of contingent liabilities	498,889
Tax contingencies | Gerdau Acos Longos S.A. | Withholding Income Tax
Contingencies
Estimated financial effect of contingent liabilities	1,362,842
Tax contingencies | Gerdau Acos Longos S.A. | Withholding Income Tax | Special Appeal, Filed
Contingencies
Estimated financial effect of contingent liabilities					R$ 984924
Tax contingencies | Gerdau Internacional Empreendimentos Ltda. and Gerdau Acos Especiais S.A | IRPJ - Corporate Income Tax and CSLL - Social Contribution Tax [Member] | Pending
Contingencies
Estimated financial effect of contingent liabilities	1,274,156
Tax contingencies | Gerdau Internacional Empreendimentos Ltda | Corporate Income Tax and Social Contribution Tax | Pending
Contingencies
Estimated financial effect of contingent liabilities	1,047,608
Tax contingencies | Gerdau Acos Especiais S.A. | Withholding Income Tax | Special Appeal, Filed
Contingencies
Estimated financial effect of contingent liabilities	R$ 377918
Tax contingencies | Gerdau Acos Especiais S.A. | Corporate Income Tax and Social Contribution Tax | Embargo to Execution, Filed
Contingencies
Estimated financial effect of contingent liabilities			R$ 226548

TAX, CIVIL AND LABOR CLAIMS A_6

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS - Civil Contingencies, Labor Contingencies and Administrative proceedings (Details) R$ in Thousands	Aug. 01, 2013BRL (R$)	Sep. 23, 2005BRL (R$)item	Dec. 31, 2021BRL (R$)item
Contingencies
Number of lawsuits that challenged the investigation | item			2
Civil contingencies | Antitrust Legislation
Contingencies
Number of civil construction unions | item		2
Fine for existence of cartel on gross revenues (in percentage)		7.00%
Fine for existence of cartel		R$ 245070
Fine for existence of cartel updated by judicial accounting	R$ 417820
Civil contingencies | Other Demands Of a Civil Nature
Contingencies
Estimated financial effect of contingent liabilities			R$ 456848
Labor Contingencies
Contingencies
Estimated financial effect of contingent liabilities			R$ 452847

TAX, CIVIL AND LABOR CLAIMS A_7

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS - Judicial Deposits (Details) - BRL (R$) R$ in Thousands

12 Months Ended

Dec. 31, 2021

Sep. 30, 2021

Jul. 14, 2021

Jun. 30, 2021

Mar. 25, 2021

Feb. 24, 2021

Dec. 31, 2020

Nov. 18, 2020

Jun. 29, 2020

May 27, 2020

Dec. 18, 2019

Sep. 16, 2019

Jul. 19, 2019

Disclosure of other provisions [line items]

Tax

R$ 1449699

R$ 1597995

Labor

73,709

95,234

Civil

135,971

132,562

Judicial deposits

1,659,379

R$ 1825791

Balance judicial deposits

1,354,340

Amount of undue payments before proposed action

R$ 683000

R$ 73500

Amount of undue payments before proposed action, net of related expenses

R$ 643000

Procedure to collect differences, amount

R$ 326000

Amount of deposits for which replacement has been requested

1,700,000

Recovery of Tax Credits Arising From Law suits

1,200,000

Other operating income lawsuits

393,300

Tax Credits Monetary Update line

788,700

Final and unappealable decision, first lawsuit

Disclosure of other provisions [line items]

Amount of undue payments before proposed action

R$ 122000

Amount of undue payments before proposed action, net of related expenses

R$ 79000

Right to withdraw judicial deposits

R$ 179000

Final and unappealable decision, second lawsuit

Disclosure of other provisions [line items]

Amount of undue payments before proposed action

R$ 280000

Amount of undue payments before proposed action, net of related expenses

R$ 185000

Right to withdraw judicial deposits

R$ 189000

Final and unappealable decision, third lawsuit

Disclosure of other provisions [line items]

Amount of undue payments before proposed action

R$ 147000

Amount of undue payments before proposed action, net of related expenses

135,000

Right to withdraw judicial deposits

R$ 198000

Final and unappealable decision, fourth lawsuit

Disclosure of other provisions [line items]

Amount of undue payments before proposed action

R$ 940000

Amount of undue payments before proposed action, net of related expenses

902,000

Right to withdraw judicial deposits

R$ 3000

Final and unappealable decision, fifth lawsuit

Disclosure of other provisions [line items]

Amount of undue payments before proposed action

73,500

Amount of undue payments before proposed action, net of related expenses

R$ 45800

Final and unappealable decision, sixth lawsuit

Disclosure of other provisions [line items]

Amount of undue payments before proposed action

R$ 5700

Amount of undue payments before proposed action, net of related expenses

R$ 3600

Final and unappealable decision, seventh lawsuit

Disclosure of other provisions [line items]

Amount of undue payments before proposed action

R$ 237000

Amount of undue payments before proposed action, net of related expenses

R$ 230000

Eighth and ninth actions for repetition

Disclosure of other provisions [line items]

Amount of undue payments before proposed action

683,000

Amount of undue payments before proposed action, net of related expenses

R$ 643000

TAX, CIVIL AND LABOR CLAIMS A_8

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS - Contingent Assets (Details) R$ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2021BRL (R$)	Jun. 30, 2020BRL (R$)	Dec. 31, 2021BRL (R$)kW
TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS
Minimum industrial consumers monthly electricity consumption limit (in Kilo watt hour) | kW			2,000
Maximum period to return the compulsory loan to taxpayers			20 years
Gain on settlement of litigation, net of expenses incurred	R$ 1391280	R$ 436000
Amount of other pending lawsuits			R$ 73000

TAX, CIVIL AND LABOR CLAIMS A_9

TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS - Other contingent assets (Details) R$ in Millions	12 Months Ended
	Dec. 31, 2021BRL (R$)
TAX, CIVIL AND LABOR CLAIMS AND CONTINGENT ASSETS
Amount of other pending lawsuits	R$ 73
Estimation of Contingent Assets	R$ 750

RELATED-PARTY TRANSACTIONS - In

RELATED-PARTY TRANSACTIONS - Intercompany loans (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Assets	R$ 2678	R$ 134354
Liabilities	(24,648)	(22,855)
Net financial income	6,089	8,277	R$ 4767
Fundacao Gerdau
RELATED PARTY TRANSACTIONS
Assets	2,678	17,262
Gerdau Corsa S.A.P.I de C.V.
RELATED PARTY TRANSACTIONS
Assets		117,092
Bradley Steel Processors
RELATED PARTY TRANSACTIONS
Liabilities	R$ 24648	R$ 22855

RELATED-PARTY TRANSACTIONS - Op

RELATED-PARTY TRANSACTIONS - Operations with related parties (Details) R$ in Thousands	12 Months Ended
	Dec. 31, 2021BRL (R$)	Dec. 31, 2020BRL (R$)installment	Dec. 31, 2019BRL (R$)
Investments
RELATED PARTY TRANSACTIONS
Sales to related parties	R$ 997298	R$ 887945	R$ 1572618
Purchases from related parties	304,239	208,948	198,636
Sales to related parties, net of purchases	693,058	678,997	1,373,982
Controlling shareholders
RELATED PARTY TRANSACTIONS
Sale of property to related party		R$ 21204
Number of annual installments | installment		6
Rental income from related party	R$ 670	R$ 524	R$ 554
Guarantee fee percentage			0.95%
Expenses resulting from debenture guarantees			R$ 68

RELATED-PARTY TRANSACTIONS - Gu

RELATED-PARTY TRANSACTIONS - Guarantees granted (Details) - Joint-venture - Financial guarantees - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Gerdau Corsa S.A.P.I de C.V.
Guarantees granted
Original Amount	R$ 4905367
Carrying Amount	2,157,290	R$ 2242865	R$ 1784868
Gerdau Summit Acos Fundidos e Forjados S.A.
Guarantees granted
Original Amount	130,164
Carrying Amount		R$ 30125	37,285
Gerdau Metaldom S.A; Aceros Corsa S.A De C.V
Guarantees granted
Original Amount	R$ 274560
Carrying Amount			R$ 241842

RELATED-PARTY TRANSACTIONS - Ke

RELATED-PARTY TRANSACTIONS - Key Management compensation and other information from related parties (Details) R$ in Thousands	12 Months Ended
	Dec. 31, 2021BRL (R$)EquityInstruments	Dec. 31, 2020BRL (R$)EquityInstruments	Dec. 31, 2019EquityInstruments
RELATED PARTY TRANSACTIONS
Cost of social charges, related to the management | R$	R$ 23266	R$ 27830
Key Management personnel (Board of Directors and executive officers)
RELATED PARTY TRANSACTIONS
Key management salaries, variable compensation and benefits | R$	61,747	33,773
Contributions to management's defined contribution pension plans | R$	1,932	1,416
Key management long-term incentive plans | R$	19,637	19,328
Fundacao Gerdau, Instituto Gerdau and Fundacao Ouro Branco
RELATED PARTY TRANSACTIONS
Contributions to defined contribution pension plans | R$	35,595	R$ 104322
Brasil ao Cubo Construo modular Ltda
RELATED PARTY TRANSACTIONS
Other non-current assets related party transaction | R$	R$ 91666
Restricted and Performance Shares | Key Management personnel (Board of Directors and executive officers)
Restricted shares granted to Management
Balance, beginning of year | EquityInstruments	6,456,248	6,717,872	6,375,547
Granted | EquityInstruments	709,990	733,218	1,083,116
Exercised | EquityInstruments	(3,453,802)	(937,325)	(627,076)
Cancelled | EquityInstruments		(64,112)	(38,553)
Others | EquityInstruments		(6,595)	75,162
Balance, end of year | EquityInstruments	3,712,436	6,456,248	6,717,872

EMPLOYEE BENEFITS - Summary (De

EMPLOYEE BENEFITS - Summary (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
EMPLOYEE BENEFITS
Plan assets	R$ 4942	R$ 39196
Total liabilities	1,415,190	1,861,439
Current	39	208
Non-current	1,415,151	1,861,231
Defined contribution pension plan
EMPLOYEE BENEFITS
Plan assets	4,942	39,196
Defined benefit pension plan
EMPLOYEE BENEFITS
Total liabilities	1,083,719	1,441,592
Post-employment health care benefit
EMPLOYEE BENEFITS
Total liabilities	318,181	362,944
Retirement and termination benefits
EMPLOYEE BENEFITS
Total liabilities	R$ 13290	R$ 56903

EMPLOYEE BENEFITS - Post-employ

EMPLOYEE BENEFITS - Post-employment defined benefit pension plan (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
American Plans | Discount rate
EMPLOYEE BENEFITS
Increase in actuarial assumption (as a percent)	1.00%
Decrease in actuarial assumption (as a percent)	1.00%
Increase (decrease) in defined benefit obligation due to increase in actuarial assumption	R$ 17822
Increase (decrease) in defined benefit obligation due to decrease in actuarial assumption	10,392
Post-employment defined benefit pension plans
EMPLOYEE BENEFITS
Accumulated other comprehensive income	R$ 920478	R$ 1173010

EMPLOYEE BENEFITS - Defined ben

EMPLOYEE BENEFITS - Defined benefit pension plan - Current expenses (Details) - Defined benefit pension plan - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current expenses of the defined benefit pension plans
Cost of current service	R$ 74840	R$ 69323	R$ 54518
Interest expense	170,897	191,326	189,544
Return on plan assets	(136,933)	(156,475)	(163,148)
Past service cost	7,093	3,967	2,302
Settlement	(847)	(11,609)	(4,712)
Interest cost on unrecoverable surplus	4,371	7,413	16,247
Net pension cost (benefit)	R$ 119421	R$ 103945	R$ 94751

EMPLOYEE BENEFITS - Defined b_2

EMPLOYEE BENEFITS - Defined benefit pension plan - Reconciliation of plan assets and liabilities (Details) - Defined benefit pension plan - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliations of assets and liabilities of the plans
Net	R$ 1083719	R$ 1441592
Defined benefit obligation	(1,083,719)	(1,441,592)
Present value of the defined benefit obligations
Reconciliations of assets and liabilities of the plans
Net	(5,409,065)	(5,921,285)	R$ 4601965	R$ 4391251
Plan assets
Reconciliations of assets and liabilities of the plans
Net	4,647,361	4,652,000	R$ 3656891	R$ 3568934
Asset ceiling restrictions on recognition of net funded assets
Reconciliations of assets and liabilities of the plans
Net	R$ 322015	R$ 172307

EMPLOYEE BENEFITS - Defined b_3

EMPLOYEE BENEFITS - Defined benefit pension plan - Variation of the plan obligations (Details) - Defined benefit pension plan - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EMPLOYEE BENEFITS
Obligation at the beginning of the year	R$ 1441592
Cost of service	74,840	R$ 69323	R$ 54518
Interest expense	170,897	191,326	189,544
Past service cost	7,093	3,967	2,302
Obligation at the end of the year	1,083,719	1,441,592
Present value of the defined benefit obligations
EMPLOYEE BENEFITS
Obligation at the beginning of the year	5,921,285	4,601,965	4,391,251
Cost of service	74,840	69,323	54,518
Interest expense	170,897	191,326	189,544
Payment of benefits	(486,310)	(434,650)	(309,817)
Past service cost	7,093	3,967	2,302
Settlement	(228,881)	(190,948)	(498,493)
Gain (loss) on remeasurement	(457,421)	467,106	546,911
Exchange Variance	407,562	1,213,196	225,749
Obligation at the end of the year	R$ 5409065	R$ 5921285	R$ 4601965

EMPLOYEE BENEFITS - Defined b_4

EMPLOYEE BENEFITS - Defined benefit pension plan - Variation of the plan assets (Details) - Defined benefit pension plan - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EMPLOYEE BENEFITS
Fair value of the plan assets at the beginning of the year	R$ 1441592
Return of the plan assets	136,933	R$ 156475	R$ 163148
Fair value of plan assets at the end of the year	(1,083,719)	(1,441,592)
Plan assets
EMPLOYEE BENEFITS
Fair value of the plan assets at the beginning of the year	4,652,000	3,656,891	3,568,934
Return of the plan assets	136,933	156,475	163,148
Contributions from sponsors	244,123	224,979	162,650
Settlement	(228,034)	(179,339)	(493,781)
Payment of benefits	(486,310)	(434,650)	(309,817)
Remeasurement	25,498	334,675	386,767
Exchange Variance	303,151	892,969	178,990
Fair value of plan assets at the end of the year	4,647,361	4,652,000	R$ 3656891
Value of shares included in fair value of plan assets	R$ 17785	R$ 8745

EMPLOYEE BENEFITS - Defined b_5

EMPLOYEE BENEFITS - Defined benefit pension plan - Actuarial gains and losses (Details) - Defined benefit pension plan - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Amounts recognized as actuarial gains and losses in the statement of comprehensive income
Restriction recognized in Other Comprehensive Income	R$ 178941	R$ 42317	R$ 94198
Remeasurements recognized in Other Comprehensive Income	(303,978)	90,114	65,946
Plan assets
Amounts recognized as actuarial gains and losses in the statement of comprehensive income
Gain (loss) on remeasurement	(25,498)	(334,675)	(386,767)
Present value of the defined benefit obligations
Amounts recognized as actuarial gains and losses in the statement of comprehensive income
Gain (loss) on remeasurement	R$ 457421	R$ 467106	R$ 546911

EMPLOYEE BENEFITS - Defined b_6

EMPLOYEE BENEFITS - Defined benefit pension plan - Historical actuarial remeasurements (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Historical actuarial remeasurements
Present value of defined benefit obligation	R$ 5409065	R$ 5921285	R$ 4601965	R$ 4391251	R$ 4314592
Fair value of plan assets	4,647,361	4,652,000	3,656,891	3,568,934	3,456,613
Surplus (Deficit)	(761,704)	(1,269,285)	(945,074)	(822,317)	(857,979)
Defined benefit pension plan | Present value of the defined benefit obligations
Historical actuarial remeasurements
Experience adjustments on plan liabilities	(457,421)	467,106	546,911	(370,083)	235,549
Defined benefit pension plan | Plan assets
Historical actuarial remeasurements
Experience adjustments on plan assets	R$ 25498	R$ 334675	R$ 386767	R$ 253301	R$ 232214

EMPLOYEE BENEFITS - Defined b_7

EMPLOYEE BENEFITS - Defined benefit pension plan - Allocation of plan assets (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Brazilian Plans
Allocation for plan assets
Fixed income	99.20%	99.10%
Others	0.80%	0.90%
Total	100.00%	100.00%
American Plans
Allocation for plan assets
Fixed income	50.40%	46.60%
Variable income	43.00%	47.10%
Others	6.60%	6.30%
Total	100.00%	100.00%
Defined benefit pension plan
Allocation for plan assets
Target allocation of shares (as a percent)	50.00%
Target allocation of debt securities (as a percent)	40.00%
Target allocation of alternative securities (as a percent)	10.00%

EMPLOYEE BENEFITS - Defined b_8

EMPLOYEE BENEFITS - Defined benefit pension plan - Assumptions used to calculate defined benefit plans (Details) - Defined benefit pension plan	Dec. 31, 2021	Dec. 31, 2020
Brazilian Plans
Summary of assumptions used to calculate the defined benefit plans
Average discount rate	8.82%	6.56%
North America Plan
Summary of assumptions used to calculate the defined benefit plans
Rate of increase in compensation	3.00%	3.00%
North America Plan | Minimum
Summary of assumptions used to calculate the defined benefit plans
Average discount rate	2.80%	2.25%
North America Plan | Maximum
Summary of assumptions used to calculate the defined benefit plans
Average discount rate		2.50%

EMPLOYEE BENEFITS - Post-empl_2

EMPLOYEE BENEFITS - Post-employment defined contribution pension plan (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Defined contribution pension plan
EMPLOYEE BENEFITS
Total cost	R$ 162133	R$ 133963

EMPLOYEE BENEFITS - Post-empl_3

EMPLOYEE BENEFITS - Post-employment health care benefit plan - Net periodic costs (Details) - Post-employment health care benefit - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net periodic costs of post-employment health care benefits
Cost of current service	R$ 3458	R$ 4964	R$ 3302
Interests expense	8,239	11,311	10,656
Past service cost	(32,434)	(660)	(2,717)
Net pension cost (benefit)	R$ 20737	R$ 15615	R$ 11241

EMPLOYEE BENEFITS - Post-empl_4

EMPLOYEE BENEFITS - Post-employment health care benefit plan - Funded status (Details) - Post-employment health care benefit - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Funded status of the post-employment health benefits plans
Total net liabilities	R$ 318181	R$ 362944
Present value of the defined benefit obligations
Funded status of the post-employment health benefits plans
Total net liabilities	R$ 318181	R$ 362944

EMPLOYEE BENEFITS - Post-empl_5

EMPLOYEE BENEFITS - Post-employment health care benefit plan - Change in obligation (Details) - Post-employment health care benefit - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EMPLOYEE BENEFITS
Cost of service	R$ 3458	R$ 4964	R$ 3302
Interest expense	8,239	11,311	10,656
Present value of the defined benefit obligations
EMPLOYEE BENEFITS
Obligation at the beginning of the year	362,944	298,989	272,959
Cost of service	3,458	4,964	3,302
Interest expense	8,239	11,311	10,656
Past service cost	(32,434)	(660)	(2,717)
Contributions from participants	2,032	2,349	2,088
Payment of benefits	(17,431)	(20,870)	(15,331)
Gain (loss) on remeasurement	(36,938)	(23,533)	11,202
Exchange variations	28,311	90,394	16,830
Obligation at the end of the year	R$ 318181	R$ 362944	R$ 298989

EMPLOYEE BENEFITS - Post-empl_6

EMPLOYEE BENEFITS - Post-employment health care benefit plan - Change in plan assets (Details) - Post-employment health care benefit - Plan assets - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EMPLOYEE BENEFITS
Fair value of the plan assets at the beginning of the year	R$ 0	R$ 0
Contributions from sponsors	24,713	19,150	R$ 13243
Contributions from participants	2,032	2,349	2,088
Payment of benefits	(26,745)	(21,499)	(15,331)
Fair value of plan assets at the end of the year	R$ 0	R$ 0	R$ 0

EMPLOYEE BENEFITS - Post-empl_7

EMPLOYEE BENEFITS - Post-employment health care benefit plan - Gains and losses (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Historical actuarial remeasurements
Present value of defined benefit obligation	R$ 5409065	R$ 5921285	R$ 4601965	R$ 4391251	R$ 4314592
Surplus (Deficit)	(761,704)	(1,269,285)	(945,074)	(822,317)	(857,979)
Post-employment health care benefit
Historical actuarial remeasurements
Present value of defined benefit obligation	(318,181)	(362,944)	(298,989)	(272,959)	(316,364)
Surplus (Deficit)	(318,181)	(362,944)	(298,989)	(272,959)	(316,364)
Experience adjustments on plan liabilities	(36,938)	(23,533)	11,202	R$ 40841	R$ 14452
Amounts recognized as actuarial gains and losses in the statement of comprehensive income
Losses on actuarial obligation	(36,938)	(23,533)	11,202
Post-employment health care benefit | Pension Plan
Amounts recognized as actuarial gains and losses in the statement of comprehensive income
Actuarial losses recognized in Equity	R$ 36938	R$ 23533	R$ 11202

EMPLOYEE BENEFITS - Post-empl_8

EMPLOYEE BENEFITS - Post-employment health care benefit plan - Assumptions (Details) - Post-employment health care benefit	Dec. 31, 2020	Dec. 31, 2019
Minimum
Summary of assumptions used to calculate the defined benefit plans
Average discount rate	2.80%	2.25%
Health treatment - rate assumed next year	4.99%	6.10%
Health treatment - Assumed rate of decline in the cost to achieve in the years of 2028 to 2041	3.20%	4.00%
Maximum
Summary of assumptions used to calculate the defined benefit plans
Average discount rate	2.90%	2.50%
Health treatment - rate assumed next year	6.20%	6.50%
Health treatment - Assumed rate of decline in the cost to achieve in the years of 2028 to 2041	4.50%	4.40%

EMPLOYEE BENEFITS - Post-empl_9

EMPLOYEE BENEFITS - Post-employment health care benefit plan - Sensitivity Analysis (Details) - Post-employment health care benefit - Discount rate R$ in Thousands	Dec. 31, 2021BRL (R$)
Sensitivity analysis
Increase in actuarial assumption (as a percent)	1.00%
Decrease in actuarial assumption (as a percent)	1.00%
Total service costs and interest costs
Sensitivity analysis
Increase (decrease) in defined benefit obligation due to increase in actuarial assumption	R$ 1710
Increase (decrease) in defined benefit obligation due to decrease in actuarial assumption	(1,327)
Present value of the defined benefit obligations
Sensitivity analysis
Increase (decrease) in defined benefit obligation due to increase in actuarial assumption	32,082
Increase (decrease) in defined benefit obligation due to decrease in actuarial assumption	R$ 26573

EMPLOYEE BENEFITS - Other retir

EMPLOYEE BENEFITS - Other retirement and termination benefits (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
EMPLOYEE BENEFITS
Total obligation	R$ 5409065	R$ 5921285	R$ 4601965	R$ 4391251	R$ 4314592
Retirement and termination benefits
EMPLOYEE BENEFITS
Total obligation	R$ 13290	R$ 56903

ENVIRONMENTAL LIABILITIES (Deta

ENVIRONMENTAL LIABILITIES (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ENVIRONMENTAL LIABILITIES
Provision for environmental liabilities	R$ 575709	R$ 297094
Current	231,711	125,992
Non-current	R$ 343998	R$ 171102

OBLIGATIONS WITH FIDC - INVES_2

OBLIGATIONS WITH FIDC - INVESTMENT FUND IN CREDIT RIGHTS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020
OBLIGATIONS WITH FIDC - INVESTMENT FUND IN CREDIT RIGHTS
Current obligations with FIDC	R$ 45497	R$ 944513
Non-current obligations with FIDC	0	R$ 42893
Book value of acquistion of credit rights	R$ 954916

EQUITY - Common and preferred s

EQUITY - Common and preferred shares outstanding (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EQUITY
Shares exercise period, excluding public offerings	30 days
Shares exercise period for public offering	10 days
Common shares
EQUITY
Authorized capital	1,500,000,000
Reconciliations of common and preferred outstanding shares
Balance at beginning of the year	571,929,945	571,929,945	571,929,945
Balance at end of period	571,929,945	571,929,945	571,929,945
Preferred shares
EQUITY
Authorized capital	3,000,000,000
Reconciliations of common and preferred outstanding shares
Balance at beginning of the year	1,129,231,487	1,127,010,827	1,124,233,755
Exercise of stock options	4,585,414	2,220,660	2,777,072
Balance at end of period	1,133,816,901	1,129,231,487	1,127,010,827

EQUITY - Ownership of shares (D

EQUITY - Ownership of shares (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EQUITY
Shares subscribed and paid up	1,719,658,728	1,719,658,728	1,719,658,728
Ownership of shares, as a percentage of total issued shares	100.00%	100.00%	100.00%
Total capital	R$ 19249181	R$ 19249181
Common shares
EQUITY
Shares subscribed and paid up	573,627,483	573,627,483	573,627,483
Ownership of shares, as a percentage of total issued shares	100.00%	100.00%	100.00%
Preferred shares
EQUITY
Shares subscribed and paid up	1,146,031,245	1,146,031,245	1,146,031,245
Ownership of shares, as a percentage of total issued shares	100.00%	100.00%	100.00%
Treasury Stocks
EQUITY
Shares subscribed and paid up	13,911,882	18,497,296	20,717,956
Ownership of shares, as a percentage of total issued shares	0.80%	1.10%	1.20%
Treasury Stocks | Common shares
EQUITY
Shares subscribed and paid up	1,697,538	1,697,538	1,697,538
Ownership of shares, as a percentage of total issued shares	0.20%	0.30%	0.30%
Treasury Stocks | Preferred shares
EQUITY
Shares subscribed and paid up	12,214,344	16,799,758	19,020,418
Ownership of shares, as a percentage of total issued shares	1.10%	1.50%	1.70%
Metalurgica Gerdau S.A.
EQUITY
Shares subscribed and paid up	557,898,901	560,046,701	627,751,085
Ownership of shares, as a percentage of total issued shares	32.40%	32.60%	36.50%
Metalurgica Gerdau S.A. | Common shares
EQUITY
Shares subscribed and paid up	557,898,901	557,898,901	557,898,901
Ownership of shares, as a percentage of total issued shares	97.30%	97.30%	97.30%
Metalurgica Gerdau S.A. | Preferred shares
EQUITY
Shares subscribed and paid up		2,147,800	69,852,184
Ownership of shares, as a percentage of total issued shares		0.20%	6.10%
Brazilian institutional investors
EQUITY
Shares subscribed and paid up	236,785,217	230,660,486	244,766,757
Ownership of shares, as a percentage of total issued shares	13.80%	13.40%	14.20%
Brazilian institutional investors | Common shares
EQUITY
Shares subscribed and paid up	4,363,438	3,397,955	3,068,614
Ownership of shares, as a percentage of total issued shares	0.80%	0.60%	0.50%
Brazilian institutional investors | Preferred shares
EQUITY
Shares subscribed and paid up	232,421,779	227,262,531	241,698,143
Ownership of shares, as a percentage of total issued shares	20.30%	19.80%	21.10%
Foreign institutional investors
EQUITY
Shares subscribed and paid up	492,705,610	495,218,544	431,611,203
Ownership of shares, as a percentage of total issued shares	28.70%	28.80%	25.10%
Foreign institutional investors | Common shares
EQUITY
Shares subscribed and paid up	1,895,038	3,142,148	3,875,655
Ownership of shares, as a percentage of total issued shares	0.30%	0.50%	0.70%
Foreign institutional investors | Preferred shares
EQUITY
Shares subscribed and paid up	490,810,572	492,076,396	427,735,548
Ownership of shares, as a percentage of total issued shares	42.80%	42.90%	37.30%
Other shareholders
EQUITY
Shares subscribed and paid up	418,357,118	415,235,701	394,811,727
Ownership of shares, as a percentage of total issued shares	24.30%	24.10%	23.00%
Other shareholders | Common shares
EQUITY
Shares subscribed and paid up	7,772,568	7,490,941	7,086,775
Ownership of shares, as a percentage of total issued shares	1.40%	1.30%	1.20%
Other shareholders | Preferred shares
EQUITY
Shares subscribed and paid up	410,584,550	407,744,760	387,724,952
Ownership of shares, as a percentage of total issued shares	35.80%	35.60%	33.80%

EQUITY - Treasury stocks (Detai

EQUITY - Treasury stocks (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Value of shares
Balance at beginning of year	R$ 31085210	R$ 27173127	R$ 25938571
Exercise of stock options	143,982	9,596	29,411
Balance at end of year	R$ 42815649	R$ 31085210	R$ 27173127
Common shares
Number of shares
Balance at beginning of the year	571,929,945	571,929,945	571,929,945
Balance at end of period	571,929,945	571,929,945	571,929,945
Preferred shares
Number of shares
Balance at beginning of the year	1,129,231,487	1,127,010,827	1,124,233,755
Exercise of long-term incentive plan	4,585,414	2,220,660	2,777,072
Balance at end of period	1,133,816,901	1,129,231,487	1,127,010,827
Treasury Stocks
EQUITY
Average acquisition cost	R$ 12.43	R$ 13.62	R$ 12.72
Value of shares
Balance at beginning of year	R$ 229309	R$ 242542	R$ 280426
Exercise of stock options	76,900	13,233	37,884
Balance at end of year	R$ 152409	R$ 229309	R$ 242542
Treasury Stocks | Common shares
Number of shares
Balance at beginning of the year	1,697,538	1,697,538	1,697,538
Balance at end of period	1,697,538	1,697,538	1,697,538
Value of shares
Balance at beginning of year	R$ 557	R$ 557	R$ 557
Balance at end of year	R$ 557	R$ 557	R$ 557
Treasury Stocks | Preferred shares
Number of shares
Balance at beginning of the year	16,799,758	19,020,418	21,797,490
Exercise of long-term incentive plan	(4,585,414)	(2,220,660)	(2,777,072)
Balance at end of period	12,214,344	16,799,758	19,020,418
Value of shares
Balance at beginning of year	R$ 228752	R$ 241985	R$ 279869
Exercise of stock options	(76,900)	(13,233)	(37,884)
Balance at end of year	R$ 151852	R$ 228752	R$ 241985

EQUITY - Reserves (Details)

EQUITY - Reserves (Details)	12 Months Ended
	Dec. 31, 2021
EQUITY.
Minimum legal reserve transfer as a percentage of net income	5.00%
Maximum legal reserve balance as a percentage of total paid-in capital	20.00%
Investments and working capital reserve, annual percentage	5.00%

EQUITY - Operations with non-co

EQUITY - Operations with non-controlling interests (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Effects of changes in ownership interests in subsidiaries
Effect of interest changes in subsidiaries	R$ 18962	R$ 12776	R$ 1586
Total Parent company's interest
Effects of changes in ownership interests in subsidiaries
Effect of interest changes in subsidiaries	0	0	0
Non-controlling interests.
Effects of changes in ownership interests in subsidiaries
Other changes	(18,962)	12,776	(1,586)
Effect of interest changes in subsidiaries	R$ 18962	R$ 12776	R$ 1586

EQUITY - Dividends and interest

EQUITY - Dividends and interest on capital (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2021

Sep. 30, 2021

Jun. 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Sep. 30, 2020

Dec. 31, 2019

Sep. 30, 2019

Mar. 31, 2019

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Mar. 31, 2020

Dividends and interest on capital

Minimum annual mandatory dividend (as a percent)

30.00%

Appropriation of retained earnings

Net income

R$ 15494111

R$ 2365763

R$ 1203736

Constitution of legal reserve

0

0

0

Constitution of the tax incentives reserve

0

0

0

Dividends and interest on capital

(5,068,684)

(779,662)

(370,167)

Dividend - adjustment in excess of the minimum estatutory undistributed

0

Constitution of investments and working capital reserve

R$ 0

0

0

Credit: May 14, 2021

Dividends and interest on capital

Dividends paid (in R$/share)

R$ 0.40

Number of shares outstanding used for dividend payment

1,705,338

Credit: August 16, 2021

Dividends and interest on capital

Dividends paid (in R$/share)

R$ 0.54

Number of shares outstanding used for dividend payment

1,705,576

Credit: September 27, 2021

Dividends and interest on capital

Interest on capital paid (in R$/share)

R$ 0.38

Number of shares outstanding used for interest payment

1,705,582

Credit: November 5, 2021

Dividends and interest on capital

Dividends paid (in R$/share)

R$ 1.42

Interest on capital paid (in R$/share)

R$ 0.20

Number of shares outstanding used for dividend payment

1,705,628

Number of shares outstanding used for interest payment

1,705,630

Credit: March 7, 2022

Dividends and interest on capital

Dividends paid (in R$/share)

R$ 0.20

R$ 0.20

Number of shares outstanding used for dividend payment

1,705,747

1,705,747

Retained Earnings

Appropriation of retained earnings

Net income

R$ 15494111

2,365,763

1,203,736

Constitution of legal reserve

(756,334)

(109,649)

(55,876)

Constitution of the tax incentives reserve

(367,430)

(172,792)

(86,216)

Net income (loss) before dividends and interest on capital

14,370,347

2,083,322

1,061,644

Dividends and interest on capital

(5,014,450)

(714,487)

(356,539)

Dividend - adjustment in excess of the minimum estatutory undistributed

(341,150)

Net income (loss) before constitution of investments and working capital reserve

9,014,747

1,368,835

705,105

Constitution of investments and working capital reserve

(9,014,747)

(1,368,835)

(705,105)

Total Parent company's interest

Appropriation of retained earnings

Constitution of legal reserve

0

0

0

Constitution of the tax incentives reserve

0

0

0

Dividends and interest on capital

(5,014,450)

(714,487)

(356,539)

Dividend - adjustment in excess of the minimum estatutory undistributed

0

Constitution of investments and working capital reserve

R$ 0

R$ 0

R$ 0

Dividends and interest on capital

Interest

R$ 510348

Interest and Dividends

R$ 5355600

R$ 714487

R$ 356539

Credit per share (R$)

R$ 3.14

R$ 0.42

R$ 0.21

Total Parent company's interest | Credit: May 14, 2021

Dividends and interest on capital

Dividends

R$ 682199

R$ 118803

Total Parent company's interest | Credit: August 16, 2021

Dividends and interest on capital

Interest

R$ 921011

R$ 118817

Total Parent company's interest | Credit: September 27, 2021

Dividends and interest on capital

Dividends

R$ 648122

Total Parent company's interest | Credit: November 5, 2021

Dividends and interest on capital

Dividends

R$ 2421992

R$ 204139

R$ 67951

Interest

R$ 341126

Total Parent company's interest | Credit: March 7, 2022

Dividends and interest on capital

Dividends

R$ 341150

R$ 50968

EARNINGS (LOSS) PER SHARE (EP_3

EARNINGS (LOSS) PER SHARE (EPS) - Basic (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Basic numerator
Net income	R$ 15494111	R$ 2365763	R$ 1203736
Basic denominator
Earnings per share (in R$) - Basic	R$ 9.09	R$ 1.39	R$ 0.71
Common shares
Basic numerator
Net income	R$ 5198011	R$ 795617	R$ 405607
Basic denominator
Weighted-average outstanding shares, after deducting the average treasury shares	571,929,945	571,929,945	571,929,945
Earnings per share (in R$) - Basic	R$ 9.09	R$ 1.39	R$ 0.71
Preferred shares
Basic numerator
Net income	R$ 10296100	R$ 1570146	R$ 798129
Basic denominator
Weighted-average outstanding shares, after deducting the average treasury shares	1,132,865,567	1,128,700,478	1,125,408,180
Earnings per share (in R$) - Basic	R$ 9.09	R$ 1.39	R$ 0.71

EARNINGS (LOSS) PER SHARE (EP_4

EARNINGS (LOSS) PER SHARE (EPS) - Diluted (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allocated net income available to Common and Preferred shareholders
Net income	R$ 15494111	R$ 2365763	R$ 1203736
Weighted - average number of shares outstanding
Earnings per share - Diluted (Common and Preferred Shares)	R$ 9.04	R$ 1.38	R$ 0.70
Common shares
Allocated net income available to Common and Preferred shareholders
Net income	R$ 5198011	R$ 795617	R$ 405607
Adjustment to net income allocated to preferred shareholders in respect to the potential increase in number of preferred shares outstanding, as a result of long-term incentive plans of Gerdau.	(26,192)	(4,782)	(2,884)
Net income available to owners of parent including effects of dilutive shares	R$ 5171819	R$ 790835	R$ 402723
Weighted - average number of shares outstanding
Weighted-average number of shares outstanding	571,929,945	571,929,945	571,929,945
Preferred shares
Allocated net income available to Common and Preferred shareholders
Net income	R$ 10296100	R$ 1570146	R$ 798129
Adjustment to net income allocated to preferred shareholders in respect to the potential increase in number of preferred shares outstanding, as a result of long-term incentive plans of Gerdau.	26,192	5,524	2,884
Net income available to owners of parent including effects of dilutive shares	R$ 10322292	R$ 1575670	R$ 801013
Weighted - average number of shares outstanding
Weighted-average number of shares outstanding	1,132,865,567	1,128,700,478	1,125,408,180
Potential increase in number of preferred shares outstanding in respect of long-term incentive plan of Gerdau	8,633,716	10,821,083	12,157,614
Total	1,141,499,283	1,139,521,561	1,137,565,794

LONG-TERM INCENTIVE PLANS - Res

LONG-TERM INCENTIVE PLANS - Restricted Shares and Performance Shares (Details) - Restricted Shares and Performance Shares R$ in Thousands	12 Months Ended
	Dec. 31, 2021BRL (R$)EquityInstrumentsshares	Dec. 31, 2020BRL (R$)EquityInstruments	Dec. 31, 2019BRL (R$)EquityInstruments
LONG-TERM INCENTIVE PLANS
Balance, beginning of year	12,469,334	13,018,407	14,261,501
Granted	2,228,196	3,146,696	2,647,995
Cancelled	(1,755,522)	(1,777,100)	(2,104,754)
Exercised	(4,407,441)	(1,918,669)	(1,786,335)
Balance, end of year	8,534,567	12,469,334	13,018,407
Expense from equity-settled long-term incentive plan | R$	R$ 65289	R$ 62801	R$ 43895
Awards granted in 2017 and later
LONG-TERM INCENTIVE PLANS
Grace period		3 years
Preferred shares
LONG-TERM INCENTIVE PLANS
Treasury shares | shares	12,214,344

LONG-TERM INCENTIVE PLANS - Sto

LONG-TERM INCENTIVE PLANS - Stock option activity (Details) - Stock options	12 Months Ended
	Dec. 31, 2019OptionsR$ / shares
Number of shares
Balance, beginning of year | Options	15,480
Options Forfeited | Options	(15,480)
Average exercise price in the year
Beginning of year | R$ / shares	R$ 16.72
Options Forfeited | R$ / shares	R$ 16.72

SEGMENT REPORTING - Summary (De

SEGMENT REPORTING - Summary (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment reporting as per business segments
Net sales	R$ 78345081	R$ 43814661	R$ 39644010
Cost of sales	(57,527,721)	(37,884,102)	(35,440,726)
GROSS PROFIT	20,817,360	5,930,559	4,203,284
Selling, general and administrative expenses	(2,105,951)	(1,530,385)	(1,430,456)
Other operating income (expenses)	519,731	1,117,699	449,200
Eletrobras compulsory loan recovery	1,391,280	0	0
Results in operations with subsidiary and joint ventures (note 3.4)	(162,913)	0	0
Impairment of non-financial assets	0	(411,925)	0
Impairment of financial assets	357	(64,132)	(21,044)
Equity in earnings of unconsolidated companies	563,158	152,569	(17,050)
INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES	21,023,022	5,194,385	3,183,934
Financial result, net	(750,454)	(1,698,707)	(1,509,214)
INCOME BEFORE TAXES	20,272,568	3,495,678	1,674,720
Income and social contribution taxes	(4,713,630)	(1,107,624)	(457,833)
NET INCOME	15,558,938	2,388,054	1,216,887
Depreciation/amortization	2,658,561	2,499,104	2,074,295
Investments in associates and joint ventures	3,340,775	2,271,629	1,812,399	R$ 1367802
Total assets	73,814,613	63,123,009	54,002,970
Total liabilities	30,998,964	32,037,799	26,829,843
North America Operation
Segment reporting as per business segments
Impairment of non-financial assets		(342,355)
Special Steel Operation
Segment reporting as per business segments
Impairment of non-financial assets		(69,570)
Operating Segments | Brazil Operation
Segment reporting as per business segments
Net sales	34,757,720	17,752,823	16,122,171
Cost of sales	(22,496,140)	(14,179,991)	(14,363,253)
GROSS PROFIT	12,261,580	3,572,832	1,758,918
Selling, general and administrative expenses	(781,942)	(562,019)	(539,344)
Other operating income (expenses)	137,649	31,500	295,818
Impairment of financial assets	7,823	(23,177)	(2,012)
Equity in earnings of unconsolidated companies		(1,287)	(828)
INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES	11,625,110	3,017,849	1,512,552
Financial result, net	(538,341)	(442,972)	(520,821)
INCOME BEFORE TAXES	11,086,769	2,574,877	991,731
Income and social contribution taxes	(2,769,495)	(652,126)	(214,400)
NET INCOME	8,317,274	1,922,751	777,331
Depreciation/amortization	1,330,963	1,135,294	1,008,713
Investments in associates and joint ventures		10,186	11,472
Total assets	24,835,717	21,099,735	17,195,824
Total liabilities	8,105,443	7,469,541	4,686,686
Operating Segments | North America Operation
Segment reporting as per business segments
Net sales	27,838,000	17,458,318	14,656,028
Cost of sales	(22,416,578)	(16,212,757)	(13,351,209)
GROSS PROFIT	5,421,422	1,245,561	1,304,819
Selling, general and administrative expenses	(639,370)	(476,518)	(444,326)
Other operating income (expenses)	42,141	97,751	44,660
Impairment of non-financial assets		(342,355)
Impairment of financial assets	(7,668)	(36,286)	(14,612)
Equity in earnings of unconsolidated companies	279,948	23,512	(110,959)
INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES	5,096,473	511,665	779,582
Financial result, net	(156,437)	(206,405)	(99,029)
INCOME BEFORE TAXES	4,940,036	305,260	680,553
Income and social contribution taxes	(1,092,146)	(178,447)	(188,458)
NET INCOME	3,847,890	126,813	492,095
Depreciation/amortization	627,483	777,369	571,015
Investments in associates and joint ventures	1,871,274	908,338	681,807
Total assets	22,096,314	18,583,439	15,178,053
Total liabilities	4,603,424	5,261,820	4,506,771
Operating Segments | South America Operation
Segment reporting as per business segments
Net sales	6,856,766	3,831,406	3,259,253
Cost of sales	(5,332,853)	(3,015,189)	(2,762,157)
GROSS PROFIT	1,523,913	816,217	497,096
Selling, general and administrative expenses	(157,912)	(116,479)	(119,627)
Other operating income (expenses)	27,514	16,684	17,416
Impairment of financial assets	(1,073)	(2,436)	(1,906)
Equity in earnings of unconsolidated companies	268,291	99,341	66,468
INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES	1,660,733	813,327	459,447
Financial result, net	(314,473)	(60,787)	(163,459)
INCOME BEFORE TAXES	1,346,260	752,540	295,988
Income and social contribution taxes	(377,286)	(195,440)	(100,341)
NET INCOME	968,974	557,100	195,647
Depreciation/amortization	213,001	142,143	120,462
Investments in associates and joint ventures	1,071,333	976,046	748,392
Total assets	7,113,706	5,448,922	4,562,604
Total liabilities	2,376,176	1,360,098	996,876
Operating Segments | Special Steel Operation
Segment reporting as per business segments
Net sales	10,980,191	6,096,471	6,701,900
Cost of sales	(9,427,221)	(5,794,666)	(6,167,502)
GROSS PROFIT	1,552,970	301,805	534,398
Selling, general and administrative expenses	(233,348)	(179,822)	(170,170)
Other operating income (expenses)	71,287	55,097	35,571
Impairment of non-financial assets		(69,570)
Impairment of financial assets	1,275	(2,233)	(2,513)
Equity in earnings of unconsolidated companies	28,831	8,899	6,776
INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES	1,421,015	114,176	404,062
Financial result, net	(238,249)	(215,433)	(109,116)
INCOME BEFORE TAXES	1,182,766	(101,257)	294,946
Income and social contribution taxes	(287,292)	13,229	(60,749)
NET INCOME	895,474	(88,028)	234,197
Depreciation/amortization	487,114	444,298	374,105
Investments in associates and joint ventures	251,668	231,152	224,201
Total assets	13,658,147	11,233,676	8,597,180
Total liabilities	2,801,071	1,994,575	1,604,885
Eliminations and Adjustments
Segment reporting as per business segments
Net sales	(2,087,596)	(1,324,357)	(1,095,342)
Cost of sales	2,145,071	1,318,501	1,203,395
GROSS PROFIT	57,475	(5,856)	108,053
Selling, general and administrative expenses	(293,379)	(195,547)	(156,989)
Other operating income (expenses)	241,140	916,667	55,734
Eletrobras compulsory loan recovery	1,391,280
Results in operations with subsidiary and joint ventures (note 3.4)	(162,913)
Equity in earnings of unconsolidated companies	(13,912)	22,104	21,493
INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES	1,219,691	737,368	28,291
Financial result, net	497,046	(773,110)	(616,789)
INCOME BEFORE TAXES	1,716,737	(35,742)	(588,498)
Income and social contribution taxes	(187,411)	(94,840)	106,115
NET INCOME	1,529,326	(130,582)	(482,383)
Investments in associates and joint ventures	146,500	145,907	146,527
Total assets	6,110,729	6,757,237	8,469,309
Total liabilities	13,112,850	15,951,765	15,034,625
Eliminations and Adjustments | Brazil Operation
Segment reporting as per business segments
Net sales	(1,352,079)	(1,149,618)	(920,659)
Eliminations and Adjustments | North America Operation
Segment reporting as per business segments
Net sales	(70,904)	(60,370)	(62,196)
Eliminations and Adjustments | South America Operation
Segment reporting as per business segments
Net sales	(16,297)	(41)
Eliminations and Adjustments | Special Steel Operation
Segment reporting as per business segments
Net sales	R$ 648316	R$ 114328	R$ 112487

SEGMENT REPORTING - Revenues by

SEGMENT REPORTING - Revenues by Geographical Region (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment reporting as per geographical areas
Net sales	R$ 78345081	R$ 43814661	R$ 39644010
Total assets	73,814,613	63,123,009	54,002,970
Brazil
Segment reporting as per geographical areas
Net sales	37,733,918	18,798,384	17,573,278
Total assets	31,740,469	28,752,629	26,124,159
Latin America
Segment reporting as per geographical areas
Net sales	8,567,310	4,996,434	4,201,165
Total assets	8,959,237	7,042,462	5,781,527
North America
Segment reporting as per geographical areas
Net sales	32,043,853	20,019,843	17,869,567
Total assets	R$ 33114907	R$ 27327918	R$ 22097284

IMPAIRMENT OF ASSETS (Details)

IMPAIRMENT OF ASSETS (Details) R$ in Thousands	12 Months Ended
	Dec. 31, 2021BRL (R$)segment	Dec. 31, 2020BRL (R$)	Dec. 31, 2019BRL (R$)
Impairment of assets
Impairment	R$ 0	R$ 411925	R$ 0
Impairment of goodwill	R$ 0	R$ 0	R$ 0
Number of operating segments | segment	4
Period for projecting the cash flows for the goodwill impairment test	five
Discount rate
Impairment of assets
Sensitivity analysis, percent of increase	0.50%	0.50%
Perpetuity growth rate
Impairment of assets
Sensitivity analysis, percent of decrease	0.50%	0.50%
North America Operation
Impairment of assets
Impairment		R$ 342355
Perpetuity growth rate	3.00%	3.00%
Pre-tax discount rate	9.50%	8.25%
Amount by which unit's recoverable amount is (below) exceeds its carrying value	R$ 5769000	R$ 6202000
North America Operation | Discount rate
Impairment of assets
Sensitivity analysis, amount above (below) book value	4,337,000	4,589,000
North America Operation | Perpetuity growth rate
Impairment of assets
Sensitivity analysis, amount above (below) book value	R$ 4679000	4,914,000
Special Steel Operation
Impairment of assets
Impairment		R$ 69570
Perpetuity growth rate	3.00%	3.00%
Pre-tax discount rate	10.50%	8.75%
Amount by which unit's recoverable amount is (below) exceeds its carrying value	R$ 4238000	R$ 2509000
Special Steel Operation | Discount rate
Impairment of assets
Sensitivity analysis, amount above (below) book value	3,301,000	1,568,000
Special Steel Operation | Perpetuity growth rate
Impairment of assets
Sensitivity analysis, amount above (below) book value	R$ 3545000	R$ 1754000
South America Operation
Impairment of assets
Perpetuity growth rate	3.00%	3.00%
Pre-tax discount rate	15.00%	11.25%
Amount by which unit's recoverable amount is (below) exceeds its carrying value	R$ 2248000	R$ 4141000
South America Operation | Discount rate
Impairment of assets
Sensitivity analysis, amount above (below) book value	2,057,000	3,757,000
South America Operation | Perpetuity growth rate
Impairment of assets
Sensitivity analysis, amount above (below) book value	R$ 2135000	R$ 3867000
Brazil Operation
Impairment of assets
Perpetuity growth rate	3.00%	3.00%
Pre-tax discount rate	11.25%	9.75%
Amount by which unit's recoverable amount is (below) exceeds its carrying value	R$ 8994000	R$ 13424000
Brazil Operation | Discount rate
Impairment of assets
Sensitivity analysis, amount above (below) book value	7,582,000	11,348,000
Brazil Operation | Perpetuity growth rate
Impairment of assets
Sensitivity analysis, amount above (below) book value	R$ 7962000	R$ 11809000

EXPENSES BY NATURE - Classified

EXPENSES BY NATURE - Classified by nature (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EXPENSES BY NATURE
Depreciation and amortisation	R$ 2658561	R$ 2499104	R$ 2074295
Labor expenses	(7,249,811)	(5,867,265)	(5,175,373)
Raw material and consumption material	(43,720,989)	(26,945,440)	(25,890,618)
Freight	(3,898,360)	(2,572,293)	(2,300,439)
Other expenses/income, net	(1,585,863)	(476,818)	(1,002,301)
Eletrobras compulsory loan recovery	1,391,280	0	0
Results in operations with subsidiary and joint ventures	(162,913)	0	0
Impairment of non-financial assets	0	(411,925)	0
Total Expenses	R$ 57885217	R$ 38772845	R$ 36443026

EXPENSES BY NATURE - Classifi_2

EXPENSES BY NATURE - Classified by function (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EXPENSES BY NATURE
Cost of sales	R$ 57527721	R$ 37884102	R$ 35440726
Selling expenses	(715,830)	(512,950)	(476,339)
General and administrative expenses	(1,390,121)	(1,017,435)	(954,117)
Other operating income	979,760	1,763,684	636,847
Other operating expenses	(460,029)	(645,985)	(187,647)
Eletrobras compulsory loan recovery	1,391,280	0	0
Results in operations with subsidiary and joint ventures	(162,913)	0	0
Impairment of financial assets	357	(64,132)	(21,044)
Impairment of non-financial assets	0	(411,925)	0
Total Expenses	R$ 57885217	R$ 38772845	R$ 36443026

FINANCIAL INCOME (Details)

FINANCIAL INCOME (Details) - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
FINANCIAL INCOME
Income from short-term investments	R$ 182639	R$ 108057	R$ 87241
Interest income and other financial income	66,385	86,035	135,972
Financial Income	249,024	194,092	223,213
Interest on debt	(1,059,841)	(1,022,460)	(938,120)
Monetary variation and other financial expenses	(373,246)	(426,001)	(531,634)
Financial Expenses	(1,433,087)	(1,448,461)	(1,469,754)
Exchange Variation, net	(108,373)	(204,291)	(247,555)
Bonds repurchase expenses	(264,687)	(239,273)	0
Tax credits monetary update	788,741	0	0
Gains and losses on derivative financial instruments, net	17,928	(774)	(15,118)
Financial result, net	R$ 750454	R$ 1698707	R$ 1509214