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Archive for April, 2016

Surcharge Calculation – April 4, 2016 – Before Embed

Thursday, April 7th, 2016

 

This Calculation was Completed Prior  to Our Surcharge Embed.

I. Energy / Utilities

A. Electricity

1. Consumption per gross pound melted = 0 .5344    kwh / gross lbs melted

2. Cost per KWH =0 .0629$   /kwh

3. Adjusted for Yield.

4. Electricity costs per ton and pound

a. 2015 = (2000 lbs x 0.538  kwh/gr lb melted) x 0 .0629$/kwh = $67.68  / Gr ton melted

b. Adjusted for yield to get to $/net pound =  0.0624 $ /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 =    0.0023$  / gross lbs.

a. Adjusted for yield = 0.00426$  /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 = $546   / 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 = 0.0055$  / gal

a. Adjusted for yield = 0.0013$ /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 -  0.0624$/net pound variance to base

b. Natural Gas – 0.00426$/net pound variance to base

c. Charge Coke – 0.078498$ /net pound variance to base

d. Water / Sewer -  0.0013$ /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 = 0 .0130$ /gross lb

a. Adjusted for yield = 0.0242$ /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

  1. Energy total -  0.06796$  /net pound variance to base
  2. Disposal total – 0.0242$ /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. -   0.2129$ /net pound variance to base

b. Environmentals & Disposal Increase – 0.0242$ /net pound variance to base

c. Energy Cost Increase – 0.06796$ /net pound variance to base

Subtotal -  0.3051$  /net pound variance to base. Prior to our Surcharge Embed.

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 0.3051$/net pound, Prior to our 4/4/16 Surcharge Embed.

Daniel Schultz

President & CEO

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SURCHARGE CALCULATION

April  1, 2016

CLASS 25 CLASS 30
COST COST COST
PER LB % LBS. PER NT % LBS. PER NT
COST 2046.60
RETURNS 335.97   NT 0.170 45.00% 900.00 151.20 44.09% 881.71 148.13
BASIC   PIG IRON 560.00   NT 0.280 10.00% 200.00 56.00 9.80% 235.12 54.86
Foundry   Pig - NT 0.000 - - 0.00% 0.00 -
MOTOR   BLOCK 434.56   GT 0.194 45.00% 900.00 174.60 44.09% 842.52 171.05
COKE 546.00   NT 0.273 285.00 77.81 0.00% 285.00 77.81
LIMESTONE 30.00   NT 0.015 95.00 1.43 95.00 1.43
50%   SILICON BRICK 892.00   NT 0.446 36.00 16.06 36.00 16.06
CARBON/GRAPHITE 1,512.00   NT 0.756 4.00 3.02 4.00 3.02
MANGANESE   BRICK 1,334.00   NT 0.667 1.50 1.00 1.50 1.00
SUPERSEED 1.210   LB 1.210 5.00 6.05 5.00 6.05
  STEEL 445.76   GT 0.199 - 1.95% 40.00 7.96
FERRO   MOLY 13.01   LB 13.01 0.00 - 0.00% 0.00 -
COPPER   CHOPS 4.29   LB 4.290 - 0.00% 0.00 -
INOCUCHROME 4.47   LB 4.469 0.00% 0.00 -
FE   MANGANESE 1.42    LB 1.417 - 0.00% 0.00 -
TIN 13.96   LB 13.96 - 0.08% 1.60 22.34
100.00% 100.00%
COST   PER NET TON   335.97   361.58
COST   PER NET TON WITH RETURNS   487.17   509.71

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CLASS Super 30 CLASS 35
COST COST COST
PER LB % LBS. PER NT % LBS. PER NT
COST 2006.60 2051.0
RETURNS 339.41   NT 0.170 44.96% 899.28 151.08 43.88% 877.62 147.44
BASIC   PIG IRON 560.00   NT 0.280 9.99% 199.84 55.96 9.75% 234.03 54.61
Foundry   Pig - NT 0.000 0.00% 0.00 - 0.00% 0.00 -
MOTOR   BLOCK 434.56   GT 0.194 44.96% 899.28 174.46 43.88% 838.62 170.26
COKE 546.00   NT 0.273 0.00% 255.00 69.62 0.00% 285.00 77.81
LIMESTONE 30.00   NT 0.015 95.00 1.43 95.00 1.43
50%   SILICON BRICK 892.00   NT 0.446 32.00 14.27 36.00 16.06
CARBON/GRAPHITE 1,512.00   NT 0.756 0.00 - 4.00 3.02
MANGANESE   BRICK 1,334.00   NT 0.667 1.50 1.00 1.50 1.00
SUPERSEED 1.210   LB 1.210 5.00 6.05 0.00 -
STEEL 445.76   GT 0.199 0.00% 0.00 - 1.95% 40.00 7.96
FERRO   MOLY 13.01   LB 13.010 0.00 - 0.00% 0.00 -
COPPER   CHOPS 4.29   LB 4.290 0.00 - 0.00% 0.00 -
INOCUCHROME 4.47   LB 4.469 0.00% 0.00 - 0.20% 4.00 17.88
FE   MANGANESE 1.42    LB 1.417 0.20% 4.00 5.67
TIN 13.96   LB 13.96 0.08% 1.60 22.34 0.15% 3.00 41.88
100.00% 100.00%
COST   PER NET TON 345.13 397.58
COST   PER NET TON WITH RETURNS 496.21 545.02

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CLASS 40
COST COST
PER LB % LBS. PER NT
COST 2095.0
RETURNS 339.41   NT 0.170 42.96% 859.19 144.34
BASIC   PIG IRON 560.00   NT 0.280 9.55% 190.93 53.46
Foundry   Pig - NT 0.000 0.00% 0.00 -
MOTOR   BLOCK 434.56   GT 0.194 42.96% 859.19 166.68
COKE 546.00   NT 0.273 0.00% 285.00 77.81
LIMESTONE 30.00   NT 0.015 95.00 1.43
50%   SILICON BRICK 892.00   NT 0.446 36.00 16.06
CARBON/GRAPHITE 1,512.00   NT 0.756 4.00 3.02
MANGANESE   BRICK 1,334.00   NT 0.667 1.50 1.00
SUPERSEED 1.210   LB 1.210 0.00 -
STEEL 445.76   GT 0.199 3.82% 80.00 15.92
FERRO   MOLY 13.01   LB 13.01 0.24% 5.00 65.05
COPPER   CHOPS 4.29   LB 4.290 0.19% 4.00 17.16
INOCUCHROME 4.47   LB 4.469 0.29% 6.00 26.81
FE   MANGANESE 1.42    LB 1.417 0.00% 0.00 -
TIN 13.96   LB 13.96 0.00% 0.00 -
100.00%
COST   PER NET TON 444.40
COST   PER NET TON WITH RETURNS 588.74