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Archive for July, 2012

Surcharge Calculation – July 30, 2012

Tuesday, July 31st, 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 $/net pound = .1183$/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 = .0028$ / gross lbs.

a. Adjusted for yield = 0.0050$/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 = $586 / 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 = .0047$ / gal

a. Adjusted for yield = 0.0019$/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 – 0.0050$/net pound variance to base

c. Charge Coke – 0.164$/net pound variance to base

d. Water / Sewer – 0.0019$/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 = .0103$/gross lb

a. Adjusted for yield = 0.0187$/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 – 0.0740$/net pound variance to base

b. Disposal total – 0.0187$/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. – 0.2389$/net pound variance to base

b. Environmentals & Disposal Increase – 0.0187$/net pound variance to base

c. Energy Cost Increase – 0.0740$/net pound variance to base

Subtotal – 0.3316$/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 0.3316$/net pound.

Timothy Zeh

President & CEO

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SURCHARGE CALCULATION

July 30, 2012

CLASS 25 CLASS 30
COST COST COST
PER LB % LBS. PER NT % LBS. PER NT
COST 2046.60
RETURNS 355.81 NT 0.178 45.00% 900.00 160.20 44.06% 881.28 156.87
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 954.00 NT 0.477 36.00 17.17 36.00 17.17
CARBON/GRAPHITE 1,484.00 NT 0.742 4.00 2.97 4.00 2.97
MANGANESE BRICK 1,684.00 NT 0.842 1.50 1.26 1.50 1.26
 SUPERSEED 1.130 LB 1.130 5.00 5.65 5.00 5.65
    STEEL 445.76 GT 0.199 - 2.00% 40.00 7.96
FERRO MOLY - LB - 0.00 -
INOCUCHROME 4.44 LB 4.440 0.00% 0.00 -
FE MANGANESE 1,940.00  NT 0.972 - - - -
TIN 13.96 LB 13.96 -     0.08% 1.60 22.34
100.00% 100.00%
COST PER NET TON 355.81 381.03
COST PER NET TON WITH   RETURNS 516.01 537.90

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CLASS Super 30 CLASS 35
COST COST COST
PER LB % LBS. PER NT % LBS. PER NT
COST 2006.60 2061.60
RETURNS 355.81 NT 0.178 44.96% 899.28 160.07 43.65% 873.00 155.39
BASIC PIG IRON 616.00 NT 0.308 9.99% 199.84 61.55 9.70% 194.00 59.75
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 43.65% 873.00 177.22
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 954.00 NT 0.477 32.00 15.26 36.00 17.17
CARBON/GRAPHITE 1,484.00 NT 0.742 0.00 - 4.00 2.97
MANGANESE BRICK 1,684.00 NT 0.842 1.50 1.26 1.50 1.26
SUPERSEED 1.13 LB 1.13 5.00 5.65 0.00 -
STEEL 445.76 GT 0.199 0.00% 0.00 - 1.56% 32.00 6.37
FERRO MOLY - LB 0.00 - 0.00% 0.00 -
INOCUCHROME 4.44 LB 4.440 0.00% 0.00 - 0.97% 20.00 88.80
FE MANGANESE 1,940.00 NT 0.972 0.38% 8.00 7.78
TIN 13.96LB 13.96 0.08% 1.60 22.34 0.08% 1.60 22.34
100.00% 100.00%
COST PER NET TON 364.28 468.12
COST PER NET TON WITH   RETURNS 524.35 623.51

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CLASS 40
COST COST
PER LB % LBS. PER NT
COST 2051.6
RETURNS 355.81 NT 0.178 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 954.00 NT 0.477 36.00 16.96
CARBON/GRAPHITE 1,484.00 NT 0.742 4.00 2.97
MANGANESE BRICK 1,684.00 NT 0.842 1.50 1.26
SUPERSEED 1.13 LB 1.13 0.00 -
STEEL 445.76 GT 0.199 1.92% 40.00 7.96
FERRO MOLY - LB 0.00% 0.00 -
INOCUCHROME 4.44 LB 4.440 1.44% 30.00 133.20
FE MANGANESE 1,940.00 NT 0.972 0.38% 8.00 7.78
TIN 13.96LB 13.96 0.08% 1.60 22.34
100.00%
COST PER NET TON 512.11
COST PER NET TON WITH   RETURNS 667.19