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Archive for July, 2011

Surcharge Calculation – July 22, 2011

Tuesday, July 26th, 2011

I. Energy / Utilities

A. Electricity

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

2. Cost per KWH = .12438$/kwh

3. Adjusted for Yield.

4. Electricity costs per ton and pound

a. 2010 = (2000 lbs x .6990 kwh/gr lb melted) x .12438$/kwh = $173.88/ Gr ton melted

b. Adjusted for yield to get to $/net pound – 0.1671 – 0.0488= .1183$/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 = $570 / 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 – 0.139$/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 = .0124$/gross lb

a. Adjusted for yield – 0.0124 – 0.0065 = 0.0059$/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 – 0.0872$/net pound variance to base

                              b. Disposal total – 0.0059$/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. - 0.2246$/net pound variance to base

b. Environmentals & Disposal Increase – 0.0059$/net pound variance to base

c. Energy Cost Increase – 0.1384$/net pound variance to base

Subtotal – 0.3689$/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 0.3689$/net pound.

Daniel Schultz

President & CEO

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SURCHARGE CALCULATION  

July 21, 2011

      CLASS 25     CLASS 30  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST           2041.60  
RETURNS 345.37 NT 0.173 45.00% 900.00 155.70 44.06% 881.28 152.46
BASIC PIG IRON 616.00 NT 0.308 10.00% 200.00   61.60   9.79% 195.84  60.32
Foundry Pig - NT 0.000   - - 0.00% 0.00 -
MOTOR BLOCK 450.24 GT 0.201 45.00% 900.00 180.90 44.06% 881.28 177.14
COKE 570.00 NT 0.285   285.00  81.23 0.00% 285.00  81.23
LIMESTONE 20.00 NT 0.010   95.00 0.95   95.00 0.95
50% SILICON BRICK 918.00 NT 0.477   36.00 16.52   36.00 16.52
CARBON/GRAPHITE 1,484.00 NT 0.742   4.00 2.97   4.00 2.97
MANGANESE BRICK 1,680.00 NT 0.840   1.50 1.26   1.50 1.26
STEEL 479.36 GT 0.214     - 2.00% 40.00 8.56
FERRO MOLY - LB       -   0.00 -
INOCUCHROME 2.55 LB 2.550       0.00% 0.00 -
TIN 13.96 LB 13.96     - 0.08% 1.60 22.34
      100.00%     100.00%    
                 
COST PER NET TON         345.43     371.29
COST PER NET TON WITH RETURNS     501.13     523.75 

_________________________________________________________________

      CLASS Super 30   CLASS 35  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST     2001.60     2051.60  
RETURNS 345.37 NT 0.173 44.96% 899.28 155.58 43.84% 876.78 151.68
BASIC PIG IRON 616.00 NT 0.308   9.99% 199.84   61.55   9.74% 194.84 60.01
Foundry Pig - NT 0.000 0.00% 0.00        -   0.00% 0.00              -
MOTOR BLOCK 450.24 GT 0.201 44.96% 899.28 180.76 43.84% 876.78 176.23
COKE 570.00 NT 0.285 0.00% 255.00 72.68 0.00% 285.00 81.23
LIMESTONE 20.00 NT 0.010   95.00 0.95   95.00 0.95
50% SILICON BRICK 918.00 NT 0.459   32.00 14.69   36.00 16.52
CARBON/GRAPHITE 1,484.00 NT 0.742   0.00 -   4.00 2.97
MANGANESE BRICK 1,680.00 NT 0.840   1.50 1.26   1.50 1.26
STEEL 479.36 GT 0.214 0.00% 0.00    - 2.00% 40.00 8.56
FERRO MOLY - LB     0.00    - 0.00% 0.00    -
INOCUCHROME 2.55 LB 2.550 0.00% 0.00    - 0.50% 10.00 22.50
TIN 13.96 LB 13.96 0.08% 1.60 22.34 0.08% 1.60 22.34
      100.00%     100.00%    
                 
COST PER NET TON         354.23     395.57
COST PER NET TON WITH RETURNS     509.81     547.25

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      CLASS 40  
    COST     COST
    PER LB % LBS. PER NT
  COST     2051.6  
RETURNS 345.37 NT 0.173 43.84% 876.78 151.68
BASIC PIG IRON 616.00 NT 0.308 9.74% 194.84 60.01
Foundry Pig - NT 0.000 0.00% 0.00    -
MOTOR BLOCK 450.24 GT 0.201 43.84% 876.78 176.23
COKE 570.00 NT 0.285 0.00% 285.00 81.23
LIMESTONE 20.00 NT 0.010   95.00 0.95
50% SILICON BRICK 918.00 NT 0.459   36.00 16.52
CARBON/GRAPHITE 1,484.00 NT 0.742   4.00 2.97
MANGANESE BRICK 1,680.00 NT 0.840   1.50 1.26
STEEL 479.36 GT 0.214 1.50% 30.00 6.42
FERRO MOLY - LB   0.00% 0.00    -
INOCUCHROME 2.55 LB 2.300 1.00% 20.00 51.00
TIN 13.96 LB 13.96 0.08% 1.60 22.34
      100.00%    
           
COST PER NET TON         418.93
COST PER NET TON WITH RETURNS     570.61