Casting Specialists

 
Unicast Blog

Archive for June, 2010

Surcharge Calculations – June 7, 2010

Wednesday, June 16th, 2010

I. Energy / Utilities

A. Electricity

1. Consumption per gross pound melted = .6990 kwh / gross lbs melted

2. Cost per KWH = .08968$/kwh

3. Adjusted for Yield.

4. Electricity costs per ton and pound

a. 2010 = (2000 lbs x .6990 kwh/gr lb melted) x .08968$/kwh = $120.54/ Gr ton melted

b. Adjusted for yield to get to $/net pound – 0.1159 – 0.0488= .0671$/net pound

c. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

B. Natural Gas

1. Dollar consumption per gross pound melted = .0054$ / gross lbs.

a. Adjusted for yield – 0.0104 – 0.0081 = 0.0023$/net pound

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

C. Coke – Cupola Shop = $506 / nt purchased

a. Adjusted for yield

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

c. Coke is the primary energy source in a cupola melt operation, independent of the electricity required for the holding furnace. Increased cost is reflected in a “charge” cost calculation. (See charge cost June 7, 2010 below).

D. Water / Sewer = .0062$ / gal

a. Adjusted for yield – 0.0119 – 0.0081 = 0.0038$/net pound

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

E. Energy total

          a. Electricity – 0.0671$/net pound variance to base

                 b. Natural Gas – 0.0023$/net pound variance to base

                 c. Charge Coke – 0.125$/net pound variance to base

                 d. Water / Sewer – 0.0038$/net pound variance to base

e. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

II. Disposal Costs – Consumption per gross lb melted = .0113$/gross lb

a. Adjusted for yield – 0.0113 – 0.0065 = 0.0048$/net pound variance to base

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

III. Pre-charge cost calculation / Disposal and Energy

       a. Energy total – 0.0732$/net pound variance to base

                              b. Disposal total – 0.0048$/net pound variance to base

c. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

IV. Charge calculations – Base Year January 4, 2010 (See Link)

V. Total surcharge adjustment since base Year 2010.

a. Charge cost increase. - 0.1764$/net pound variance to base

b. Environmentals & Disposal Increase – 0.0048$/net pound variance to base

c. Energy Cost Increase – 0.0732$/net pound variance to base

Subtotal – 0.2544$/net pound variance to base

d. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

VI. It should be noted by all, that under the Obama Administration, all of the above costs will only increase dramatically for many years to come.

As noted from the above calculation our current surcharge should be 0.2544$/net pound, however , we have, at this time chosen to maintain our zero surcharge policy

Daniel Schultz

President & CEO

_________________________________________________________________

SURCHARGE CALCULATION

June 7, 2010

      CLASS 25     CLASS 30  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST           2041.60  
RETURNS 312.71 NT 0.156 45.00% 900.00 140.40 44.06% 881.28 137.48
BASIC PIG IRON 556.00 NT 0.278 10.31% 206.02  57.32 10.10% 201.91  56.13
Foundry Pig - NT 0.000   - - 0.00% 0.00 -
MOTOR BLOCK 405.44 GT 0.181 44.69% 893.80 161.78 43.76% 875.21 158.41
COKE 506.00 NT 0.253   285.00  72.11 0.00% 285.00  72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86   95.00 0.86
50% SILICON BRICK 904.00 NT 0.452   36.00 16.27   36.00 16.27
CARBON/GRAPHITE 1,436.00 NT 0.718   4.00 2.87   4.00 2.87
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50   1.50 1.50
STEEL 349.44 GT 0.156     - 2.00% 40.00 6.24
FERRO MOLY - LB       -   0.00 -
INOCUCHROME 2.22 LB 2.220       0.00% 0.00 -
TIN 9.68 LB 9.680     - 0.08% 1.60 15.49
      100.00%     100.00%    
                 
COST PER NET TON         312.71     329.88
COST PER NET TON WITH RETURNS     453.11     467.36 

_________________________________________________________________

      CLASS Super 30   CLASS 35  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST     2001.60     2051.60  
RETURNS 312.71 NT 0.156 44.96% 899.28 140.29 43.84% 876.78 136.78
BASIC PIG IRON 556.00 NT 0.278 10.30% 206.04 57.28 10.04% 200.88 55.84
Foundry Pig - NT 0.000 0.00% 0.00 - 0.00% 0.00 -
MOTOR BLOCK 405.44 GT 0.181 44.65% 893.08 161.65 43.54% 870.74 157.60
COKE 506.00 NT 0.253 0.00% 255.00 64.52 0.00% 285.00 72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86   95.00 0.86
50% SILICON BRICK 904.00 NT 0.452   32.00 14.46   36.00 16.27
CARBON/GRAPHITE 1,436.00 NT 0.718   0.00 -   4.00 2.87
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50   1.50 1.50
STEEL 349.44 GT 0.156 0.00% 0.00 - 2.00% 40.00 6.24
FERRO MOLY - LB     0.00 - 0.00% 0.00 -
INOCUCHROME 2.22 LB 2.220 0.00% 0.00 - 0.50% 10.00 22.20
TIN 9.68 LB 9.680 0.08% 1.60 15.49 0.08% 1.60 15.49
      100.00%     100.00%    
                 
COST PER NET TON         315.76     350.98 
COST PER NET TON WITH RETURNS     456.05     487.76

_________________________________________________________________

      CLASS 40  
    COST     COST
    PER LB % LBS. PER NT
  COST     2051.6  
RETURNS 312.71 NT 0.156 43.84% 876.78 136.78
BASIC PIG IRON 556.00 NT 0.278 10.04% 200.88 55.84
Foundry Pig - NT 0.000 0.00% 0.00 -
MOTOR BLOCK 405.44 GT 0.181 43.54% 870.74 157.60
COKE 506.00 NT 0253 0.00% 285.00 72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86
50% SILICON BRICK 904.00 NT 0.452   36.00 16.27
CARBON/GRAPHITE 1,436.00 NT 0.718   4.00 2.87
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50
STEEL 349.44 GT 0.156 1.50% 30.00 4.68
FERRO MOLY - LB   0.00% 0.00 -
INOCUCHROME 2.22 LB 2.220 1.00% 20.00 44.40
TIN 9.68 LB 9.680 0.08% 1.60 15.49
      100.00%    
           
COST PER NET TON         371.62
COST PER NET TON WITH RETURNS     508.40