Note 3 - Inventories

3 Months Ended

Mar. 31, 2017

3.	I nventories:

Inventories consisted of the following:

	Inventory as of
(in thousands)	March 31, 2017		December 31, 2016
Unprocessed	$	212,055	$	203,256
Processed and finished		51,135		51,270
Totals	$	263,190	$	254,526

The Company values certain of its tubular and pipe products inventory at the last-in,

first

-out (LIFO) method. At

March

31,

2017

and

December

31,

2016,

approximately

$45.5

million, or

17.3%

of consolidated inventory, and

$43.4

million, or

17.1%

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.

During the

three

months ended

March

31,

2017,

the Company recorded

$0.4

million of LIFO expense as the current projections anticipate increased pricing and volume of LIFO inventory for the remainder of the year. During the

three

months ended

March

31,

2016,

the Company did

not

record an adjustment to LIFO inventory.

If the FIFO method had been in use, inventories would have been

$7.7

million lower than reported at

March

31,

2017

and

$8.0

million lower than reported at

December

31,

2016.