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Note 10 - Fair Value of Financial Instruments:
 6 Months Ended
Jun. 30, 2012
Fair Value Disclosures [Text Block]
(10)       Fair Value of Financial Instruments:

The Company’s financial instruments include cash and cash equivalents, short-term trade receivables, derivative instruments, accounts payable and debt instruments. For short-term instruments, other than those required to be reported at fair value on a recurring basis and for which additional disclosures are included below, management concluded the historical carrying value is a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  Fair value is an exit price concept that assumes an orderly transaction between willing market participants.  Valuation techniques must maximize the use of observable inputs and minimize the use of unobservable inputs.  To measure fair value, the Company applies a fair value hierarchy that is based on three levels of input, of which the first two are considered observable and the last unobservable, as follows:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices that are not active; or other inputs that are observable or can be corroborated by observable market date for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

During the six months ended June 30, 2012, there were no transfers of financial assets between the levels in the fair value hierarchy.  Following is a description of the valuation methodologies used for assets and liabilities measured at fair value as of June 30, 2012 and December 31, 2011:

Nickel swaps and embedded customer derivatives – Determined by using Level 2 inputs that include the price of nickel indexed to the LME.  The fair value is determined based on quoted market prices and reflects the estimated amounts the Company would pay or receive to terminate the nickel swaps.

Interest rate swap and fixed rate interest rate hedge – Based on the present value of the expected future cash flows, considering the risks involved, and using discount rates appropriate for the maturity date.  Market observable Level 2 inputs are used to determine the present value of future cash flows.

The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company:

(in thousands)
                       
June 30, 2012
 
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
Assets:
                       
Embedded customer derivatives
  $ -     $ 229     $ -     $ 229  
                                 
Liabilities:
                               
Nickel swaps
    -       284       -       284  
Interest rate swap
            476               476  
Fixed interest rate hedge
    -       655       -       655  
Total liabilities at fair value
  $ -     $ 1,415     $ -     $ 1,415  

(in thousands)
                       
December 31, 2011
 
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
Assets:
                       
Embedded customer derivatives
  $ -     $ 55     $ -     $ 55  
                                 
Liabilities:
                               
Nickel swaps
    -       55       -       55  
Interest rate swap
    -       492       -       492  
Total liabilities at fair value
  $ -     $ 547     $ -     $ 547  

Long-Term Financial Instruments

The fair value of the IRB is determined using Level 1 inputs.  The carrying value and the fair value of the IRB that qualify as financial instruments were both $4.3 million and $5.1 million at June 30, 2012 and December 31, 2011, respectively.

The fair values of the revolver and term loan are determined using Level 2 inputs. The carrying values of the revolver and the term loan were $219.9 million and $54.0 million, at June 30, 2012, respectively.  The carrying value of the revolver and the term loan were $170.4 million and $57.6 million, at December 31, 2011, respectively.  As the revolver and term loan were amended in 2012, refinanced in 2011, and carry variable interest rates, management believes that the amounts are carried at fair value at June 30, 2012 and December 31, 2011.