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Archive for February, 2012

Surcharge Calculation – February 6, 2012

Monday, February 6th, 2012

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. 2011 = (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 = $582 / 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 January 23, 2011 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 – 0.164$/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 – 0.0126 – 0.0065 = 0.0061$/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 – 0.0061$/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. - 0.2307$/net pound variance to base

b. Environmentals & Disposal Increase – 0.0061$/net pound variance to base

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

Subtotal – 0.3752$/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 0.3752$/net pound.

Timothy Zeh

President & CEO

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SURCHARGE CALCULATION  

January 23, 2012

      CLASS 25     CLASS 30  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST           2041.60  
RETURNS 349.95 NT 0.173 45.00% 900.00 157.50 44.06% 881.28 154.22
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 454.72 GT 0.203 45.00% 900.00 182.70 44.06% 881.28 178.90
COKE 586.00 NT 0.293   285.00  83.51 0.00% 285.00  83.51
LIMESTONE 20.00 NT 0.010   95.00 0.95   95.00 0.95
50% SILICON BRICK 942.00 NT 0.477   36.00 16.96   36.00 16.96
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 4.75 LB 4.750       0.00% 0.00 -
TIN 13.96 LB 13.96     - 0.08% 1.60 22.34
      100.00%     100.00%    
                 
COST PER NET TON         349.95     375.77
COST PER NET TON WITH RETURNS     507.45     529.99 

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      CLASS Super 30   CLASS 35  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST     2001.60     2051.60  
RETURNS 349.95 NT 0.175 44.96% 899.28 157.37 43.84% 876.78 153.44
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 454.72 GT 0.203 44.96% 899.28 182.55 43.84% 876.78 177.99
COKE 586.00 NT 0.293 0.00% 255.00 74.72 0.00% 285.00 83.51
LIMESTONE 20.00 NT 0.010   95.00 0.95   95.00 0.95
50% SILICON BRICK 942.00 NT 0.471   32.00 15.07   36.00 16.96
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 4.75 LB 4.750 0.00% 0.00    - 0.50% 10.00 47.50
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         358.44     422.05
COST PER NET TON WITH RETURNS     515.81     575.49

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      CLASS 40  
    COST     COST
    PER LB % LBS. PER NT
  COST     2051.6  
RETURNS 349.95 NT 0.175 43.84% 876.78 153.44
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 454.72 GT 0.203 43.84% 876.78 177.99
COKE 586.00 NT 0.293 0.00% 285.00 83.51
LIMESTONE 20.00 NT 0.010   95.00 0.95
50% SILICON BRICK 942.00 NT 0.471   36.00 16.96
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 4.75 LB 4.750 1.00% 20.00 95.00
TIN 13.96 LB 13.96 0.08% 1.60 22.34
      100.00%    
           
COST PER NET TON         467.41
COST PER NET TON WITH RETURNS     620.85