SCHN 2021 Form 10-K

5 / Schnitzer Steel Industries, Inc. Form 10-K 2021 Our finished steel product prices differ by product size and grade. Selling prices are influenced by the price of raw materials, including the cost of recycled ferrous metal and required consumables including graphite electrodes and alloys, as well as regional demand in the West Coast and Western Canadian markets. Selling prices for our finished steel products may also be affected by the price and availability of steel imports. Customers and Markets Approximately 95% of our consolidated revenues are derived from sales of recycled ferrous and nonferrous metal products and finished steel products. We sell our recycled ferrous and nonferrous metal products globally to steel mills, foundries, refineries, smelters, wholesalers, and other recycled metal processors. Our finished steel customers are primarily steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and major farm and wood products suppliers. We had no external customers that accounted for 10% or more of our consolidated revenues in fiscal 2021, 2020, or 2019. Recycled Ferrous Metal The table below sets forth, on a revenue and volume basis, the amount of recycled ferrous 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 Ferrous revenues Domestic $ 289,742 $ 167,060 $ 288,641 73% (42)% Foreign 1,268,149 695,430 876,078 82% (21)% Total ferrous revenues $ 1,557,891 $ 862,490 $ 1,164,719 81% (26)% Ferrous volumes (LT, in thousands)(1) Domestic(2) 1,500 1,429 1,699 5% (16)% Foreign 2,908 2,525 2,621 15% (4)% Total ferrous volumes (LT, in thousands)(3) 4,408 3,954 4,319 11% (8)% LT = Long Ton, which is equivalent to 2,240 pounds. (1) Ferrous volumes sold externally and delivered to our steel mill for finished steel production. (2) Domestic includes volumes delivered to our steel mill for finished steel production. (3) May not foot due to rounding. We export recycled ferrous metal primarily to countries in Asia, the Mediterranean region, and North, Central, and South America. Ferrous exports made up 66%, 64%, and 61% of our total ferrous volumes in fiscal 2021, 2020, and 2019, respectively. In fiscal 2021, the three countries from which we derived our largest ferrous export revenues from external customers were Bangladesh, Turkey, and Vietnam which collectively accounted for 63% of our total ferrous export revenues. In fiscal 2020 and 2019, the three countries from which we derived our largest ferrous export revenues from external customers accounted for 69% and 64%, respectively, of our total ferrous export revenues. We generally attribute revenues from external customers to individual countries based on the country in which the customer is located. Our three largest external recycled ferrous metal customers accounted for 25% of total ferrous revenues in fiscal 2021, compared to 32% and 29% in fiscal 2020 and 2019, respectively.

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