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Archive for June, 2017

Surcharcge Calculation – June 22, 2017

Sunday, June 25th, 2017

 

This Calculation was Completed Prior  to Our Surcharge Embed.

I. Energy / Utilities

A. Electricity

1. Consumption per gross pound melted = 0 .5661    kwh / gross lbs melted

2. Cost per KWH =0 .0740$   /kwh

3. Adjusted for Yield.

4. Electricity costs per ton and pound

a. 2016 = (2000 lbs x 0.5661  kwh/gr lb melted) x 0 .0740$/kwh = $83.78  / Gr ton melted

b. Adjusted for yield to get to $/net pound =  0.0804 $ /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 =    0.0022$  / gross lbs.

a. Adjusted for yield = 0.00420$  /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 = 0.0043$  / gal

a. Adjusted for yield = 0.0022$ /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 -  0.0740$/net pound variance to base

b. Natural Gas – 0.00420$/net pound variance to base

c. Charge Coke – 0.07327$ /net pound variance to base

d. Water / Sewer -  0.0022$ /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 .0097$ /gross lb

a. Adjusted for yield = 0.0185$ /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 -  0.0804$  /net pound variance to base
  2. Disposal total – 0.0185$ /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. -   0.2130$ /net pound variance to base

b. Environmentals & Disposal Increase – 0.0185$ /net pound variance to base

c. Energy Cost Increase – 0.0804$ /net pound variance to base

Subtotal -  0.3119$  /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.

 

As noted from the above calculation our current surcharge should be 0.3119$/net pound.

Daniel Schultz

President & CEO

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SURCHARGE CALCULATION

June  13, 2017

CLASS 25 CLASS 30
COST COST COST
PER LB % LBS. PER NT % LBS. PER NT
COST 2046.60
RETURNS 336.06   NT 0.168 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% 195.93 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% 881.71 171.05
COKE 546.00   NT 0.273 285.00 77.81 0.00% 285.00 77.81
LIMESTONE 30.00   NT 0.016 95.00 1.52 95.00 1.52
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 1.73    LB 1.730 - 0.00% 0.00 -
TIN 13.96   LB 13.96 - 0.08% 1.60 22.34
100.00% 100.00%
COST   PER NET TON   336.06   361.67
COST   PER NET TON WITH RETURNS   487.26   509.80

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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 336.06   NT 0.168 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 32.00   NT 0.016 95.00 1.52 95.00 1.52
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 1.73    LB 1.730  0.00 0.20% 4.00 6.92
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 345.22 398.92
COST   PER NET TON WITH RETURNS 496.30 546.36

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CLASS 40
COST COST
PER LB % LBS. PER NT
COST 2095.0
RETURNS 336.06   NT 0.168 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 32.00   NT 0.016 95.00 1.52
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 1.73    LB 1.730 0.00% 0.00 -
TIN 13.96   LB 13.96 0.00% 0.00 -
100.00%
COST   PER NET TON 444.49
COST   PER NET TON WITH RETURNS 588.83