Note 3 - Inventories

3 Months Ended

Mar. 31, 2013

3. Inventories:

Inventories consisted of the following:

	Inventory as of
(in thousands)	March 31, 2013		December 31, 2012
Unprocessed	$	201,685	$	215,526
Processed and finished		73,500		74,497
Totals	$	275,185	$	290,023

The Company values certain of its tubular and pipe products inventory at the last-in, first-out (LIFO) method. At March 31, 2013 and December 31, 2012, approximately $43.6 million, or 15.8% of consolidated inventory, and $46.7 million, or 16.1% of consolidated inventory, respectively, was reported under the LIFO method of accounting. The cost of the remainder of the tubular and pipe products inventory is determined using a weighted average rolling first-in, first-out (FIFO) method. Inventories in our flat products segment are valued using the specific identification method.

In the first quarter of 2013, the Company made an out-of-period adjustment to record previously unrecognized LIFO adjustments, which resulted in an increase to after-tax income of $1.2 million. The Company determined that this adjustment was not material to its current or prior period consolidated financial statements.

If the FIFO method had been in use, inventories would have been $1.9 million lower than reported at March 31, 2013.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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