Casting Specialists

 
Unicast Blog

Surcharge Calculation – July 11, 2013

I. Energy / Utilities

A. Electricity

1. Consumption per gross pound melted = 0 .5422    kwh / gross lbs melted

2. Cost per KWH =0 .06996$   /kwh

3. Adjusted for Yield.

4. Electricity costs per ton and pound

a. 2011 = (2000 lbs x 0.5422  kwh/gr lb melted) x 0 .06996$/kwh = $75.86  / Gr ton melted

b. Adjusted for yield to get to $/net pound =  0.0677 $ /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 =    0.0032$  / gross lbs.

a. Adjusted for yield = 0.00571$  /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 = $560   / 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 = 0.0099$  / 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 –  0.0677$/net pound variance to base

b. Natural Gas – 0.00571$/net pound variance to base

c. Charge Coke – 0.074816$ /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 .0091$ /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 -  0.08424$    /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. –   0.2416$ /net pound variance to base

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

c. Energy Cost Increase – 0.08424$ /net pound variance to base

Subtotal –  0.34454$  /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

_________________________________________________________________

SURCHARGE CALCULATION

June  29, 2013

CLASS 25 CLASS 30
COST COST COST
PER LB % LBS. PER NT % LBS. PER NT
COST 2046.60
RETURNS 356.80   NT 0.178 45.00% 900.00 160.20 44.09% 881.71 156.94
BASIC   PIG IRON 616.00   NT 0.308 12.00% 240.00 73.92 11.76% 235.12  72.42
Foundry   Pig - NT 0.000 - - 0.00% 0.00 -
MOTOR   BLOCK 454.72   GT 0.203 43.00% 860.00 174.58 42.13% 842.52 171.03
COKE 560.00   NT 0.280 285.00 79.80 0.00% 285.00  79.80
LIMESTONE 22.00   NT 0.011 95.00 1.05 95.00 1.05
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 1.210   LB 1.210 5.00 6.05 5.00  6.05
  STEEL 445.76   GT 0.199 - 1.95% 40.00 7.96
COPPER   CHOPS 4.29   LB 4.290 - 0.00% 0.00 -
INOCUCHROME 4.45   LB 4.450 0.00% 0.00 -
FE MANGANESE  0.99  LB 0.988 - 0.00% 0.00 -
TIN 13.96   LB 13.96 -   0.08% 1.60 22.34
100.00% 100.00%
COST   PER NET TON 356.80 382.05
COST   PER NET TON WITH RETURNS 517.00 538.99

_________________________________________________________________

CLASS Super 30 CLASS 35
COST COST COST
PER LB % LBS. PER NT % LBS. PER NT
COST 2006.60 2047.0
RETURNS 356.80   NT 0.178 44.96% 899.28 160.07 43.97% 879.34 156.52
BASIC   PIG IRON 616.00   NT 0.308 11.99% 239.81 73.86 11.72% 234.49 72.22
Foundry   Pig - NT 0.000 0.00% 0.00 - 0.00% 0.00 -
MOTOR   BLOCK 454.72   GT 0.203 42.97% 859.31 174.44 42.01% 840.25 170.57
COKE 560.00   NT 0.280 0.00% 255.00 71.40 0.00% 285.00 79.80
LIMESTONE 22.00   NT 0.011 95.00 1.05 95.00 1.05
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 1.21   LB 1.21 5.00 6.05 0.00 -
STEEL 445.76   GT 0.199 0.00% 0.00 - 1.56% 32.00 6.37
COPPER   CHOPS 4.29   LB 4.290 0.00 - 0.00% 0.00  -
INOCUCHROME 4.45   LB 4.450 0.00% 0.00 - 0.39% 8.00 35.60
FE   MANGANESE 0.99 LB 0.988 0.20% 4.00 3.95
TIN 13.96LB 13.96 0.08% 1.60 22.34 0.15% 3.00 41.88
100.00% 100.00%
COST   PER NET TON 365.66 432.84
COST   PER NET TON WITH RETURNS 525.73 589.36

_________________________________________________________________

CLASS 40
COST COST
PER LB % LBS. PER NT
COST 2065.0
RETURNS 356.80   NT 0.178 43.84% 871.67 155.16
BASIC   PIG IRON 616.00   NT 0.308 9.74% 232.45 71.59
Foundry   Pig - NT 0.000 0.00% 0.00 -
MOTOR   BLOCK 454.72   GT 0.203 41.65% 832.93 169.08
COKE 560.00   NT 0.280 0.00% 285.00 79.80
LIMESTONE 22.00   NT 0.011 95.00 1.05
50%   SILICON BRICK 954.00   NT 0.477 36.00 17.17
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 1.21   LB 1.21 0.00 -
STEEL 445.76   GT 0.199 1.94% 40.00 7.96
COPPER   CHOPS 4.29   LB 4.290 0.29% 6.00 -
INOCUCHROME 4.44   LB 4.440 0.58% 30.00 133.20
FE   MANGANESE 0.99 LB 0.988 0.19% 8.00 7.78
TIN 13.96LB 13.96 0.15% 1.60 22.34
100.00%
COST   PER NET TON 475.85
COST   PER NET TON WITH RETURNS 631.01

 

Comments are closed.