Note 6 - Inventories

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Inventory Disclosure [Text Block]

6. Inventories:

Inventories consisted of the following:

	As of December 31,
(in thousands)	2023		2022
Unprocessed	$	282,565	$	356,588
Processed and finished		103,970		60,343
Total	$	386,535	$	416,931

At December 31, 2023 and December 31, 2022, approximately $38.2 million, or 9.9% of consolidated inventory, and $46.3, or 11.1% of consolidated inventory, respectively, was reported under the LIFO method of accounting.  

During 2023, the Company recorded $8.3 million of LIFO income as a result of decreased metals pricing during 2023. The LIFO income increased the Company’s inventory balance and decreased its cost of materials sold. During 2022, the Company recorded $0.6 million of LIFO expense as a result of increased metals pricing during 2022. The LIFO expense decreased the Company’s inventory balance and increased its cost of materials sold.

The Company's tubular and pipe inventory quantities were reduced during 2023 and 2022 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 years ended December 31, 2023 and 2022, 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 $12.0 million and $20.3 million higher than reported at December 31, 2023 and 2022, respectively.