Note 5 - Inventories

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

5.

     

Inventories

:

Inventories consisted of the following:

	As of December 31,
(in thousands)	2019		2018
Unprocessed	$	220,787	$	306,953
Processed and finished		52,744		61,785
Totals	$	273,531,	$	368,738

During

2019,

the Company recorded

$3.7

million of LIFO income as a result of decreased metals pricing during

2019.

The LIFO income increased the Company’s inventory balance and decreased its cost of materials sold. During

2018,

the Company recorded

$8.4

million of LIFO expense as a result of increased metals pricing during

2018.

The LIFO expense decreased the Company’s inventory balance and increased its cost of materials sold.

Our inventory quantities were reduced during

2019,

resulting in a liquidation of LIFO inventory layers (a “LIFO decrement”). A LIFO decrement results in the erosion of layers created in earlier years, and, therefore, a LIFO layer is

not

created for years that have decrements. For the year ended

December 31, 2019,

the effect of the LIFO decrement impacted cost of materials sold by an immaterial amount.

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

$0.6

million lower and

$3.1

million higher than reported at

December 31, 2019

and

2018,

respectively.