6 / Schnitzer Steel Industries, Inc. Form 10-K 2021 Recycled Nonferrous Metal The table below sets forth, on a revenue and volume basis, the amount of recycled nonferrous metal sold to foreign and domestic customers during the last three fiscal years ended August 31: For the Year Ended August 31, % Increase (Decrease) ($ in thousands) 2021 2020 2019 2021 vs. 2020 2020 vs. 2019 Nonferrous revenues Domestic $ 367,744 $ 195,880 $ 216,992 88% (10)% Foreign 317,118 194,418 251,031 63% (23)% Total nonferrous revenues $ 684,862 $ 390,298 $ 468,023 75% (17)% Nonferrous volumes (pounds, in thousands)(1) Domestic 219,126 194,554 262,024 13% (26)% Foreign 374,252 356,012 405,310 5% (12)% Total nonferrous volumes (pounds, in thousands)(2) 593,378 550,566 667,334 8% (17)% (1) All nonferrous volumes sold externally. (2) May not foot due to rounding. Nonferrous exports made up 63%, 65%, and 61% of our total nonferrous sales volumes in fiscal 2021, 2020, and 2019, respectively. The substantial majority of our nonferrous joint products recovered from the shredding process are sold to the export market currently and made up 44%, 47%, and 43% of our total nonferrous sales volumes in fiscal 2021, 2020, and 2019, respectively. In fiscal 2021, the three countries from which we derived our largest nonferrous export revenues from external customers were India, Malaysia, and China which collectively accounted for 69% of our total nonferrous export revenues. In fiscal 2020 and 2019, the three countries from which we derived our largest nonferrous export revenues from external customers accounted for 58% and 68%, respectively, of our total nonferrous export revenues. Finished Steel Products The table below sets forth, on a revenue and volume basis, the amount of finished steel products sold during the last three fiscal years ended August 31: For the Year Ended August 31, % Increase (Decrease) ($ in thousands) 2021 2020 2019 2021 vs. 2020 2020 vs. 2019 Steel revenues(1) $ 379,203 $ 336,980 $ 367,956 13% (8)% Finished steel sales volumes (ST, in thousands) 488 505 478 (3)% 6% ST = Short Ton, which is equivalent to 2,000 pounds. (1) Steel revenues include predominantly sales of finished steel products, in addition to sales of semi-finished goods (billets) and steel manufacturing scrap. We sell finished steel products to customers located primarily in the Western United States andWestern Canada. Customers in California accounted for 52%, 55%, and 54% of our steel revenues in fiscal 2021, 2020, and 2019, respectively. Distribution We deliver recycled ferrous and nonferrous metal to foreign customers by ship and to domestic customers by barge, rail, and road transportation networks. Cost efficiencies are achieved by operating deepwater terminal facilities in Everett, Massachusetts; Portland, Oregon; Oakland, California; Tacoma, Washington; and Providence, Rhode Island, all of which are owned, except for the Providence, Rhode Island facility which is operated under a long-term lease. We also have access to deepwater terminal facilities at Kapolei, Hawaii and Salinas, Puerto Rico through public docks. The use of deepwater terminals enables us to load ferrous material in large vessels capable of holding up to 50,000 tons for trans-oceanic shipments. We believe the use of our owned and leased terminal facilities is advantageous because it allows us to more effectively manage loading costs and minimize the berthing delays often experienced by users of unaffiliated terminals. From time to time, we may enter into contracts of affreightment, which guarantee the availability of ocean-going vessels, in order to manage the risks associated with ship availability and freight costs. Our nonferrous products are shipped in 20- to 30-ton capacity containers from ports and rail ramps located in close proximity to our recycling facilities. Containerized shipments are exported by marine vessels to customers globally, and domestic shipments are typically shipped to customers by rail or by truck.
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