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Note 4 - Inventories

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

4.	Inventories:

Inventories consisted of the following:

		Inventory as of
(in thousands)		September 30, 2020				December 31, 2019
Unprocessed		$	188,264			$	220,787
Processed and finished			44,633				52,744
Totals		$	232,897			$	273,531

The Company values certain of its tubular and pipe products inventory at the last-in, first-out (LIFO) method. At September 30, 2020 and December 31, 2019, approximately $36.9 million, or 15.8% of consolidated inventory, and $39.1 million, or 14.3% 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.

The Company recorded $0.1 million and $1.1 million of LIFO income during the three and nine months ended September 30, 2020, respectively, as current projections anticipate declining metals prices, which would increase the LIFO debit by December 31, 2020. The Company recorded $1.0 million and $1.3 million of LIFO income during the three and nine months ended September 30, 2019, respectively.

If the FIFO method had been in use, inventories would have been $1.7 million lower than reported at September 30, 2020 and $0.6 million lower than reported at December 31, 2019.