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Note 4 - Inventories

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Inventory Disclosure [Text Block]

4.	*Inventories:*

Inventories consisted of the following:

		Inventory as of
(in thousands)		September 30, 2021				December 31, 2020
Unprocessed		$	341,346			$	194,614
Processed and finished			76,633				45,387
Totals		$	417,979			$	240,001

The Company values certain of its tubular and pipe products inventory at the last-in, first-out (LIFO) method. At September 30, 2021 and December 31, 2020, approximately $55.4 million, or 13.3% of consolidated inventory, and $50.3 million, or 21.0% 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 and nine months ended September 30, 2021, the Company recorded $7.0 million and $12.0 million of LIFO expense, respectively, as current projections anticipate increased metals prices by December 31, 2021 compared to December 31, 2020. During the three and nine months ended September 30, 2020, the Company recorded $0.1 million and $1.1 million of LIFO income, respectively.

If the FIFO method had been in use, inventories would have been $9.9 million higher and $2.1 million lower than reported at September 30, 2021 and December 31, 2020, respectively.