NOTE B — INVENTORIES

Inventories consist of prime coil, non-standard coil and tubular materials. Prime coil inventory consists primarily of raw materials, non-standard coil inventory consists primarily of finished goods and tubular inventory consists of both raw materials and finished goods. Inventories are valued at the lower of cost or replacement market. Cost for prime coil inventory is determined under the last-in, first-out (“LIFO”) method. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method.

A summary of inventory values by product group follows:


	December 31,		March 31,
	2012		2012
Prime Coil Inventory	$	8,540,343	$	8,562,607
Non-Standard Coil Inventory		2,919,449		1,853,445
Tubular Raw Material		2,283,486		6,859,871
Tubular Finished Goods		19,163,426		19,477,757

	$	32,906,704	$	36,753,680