NOTE 4: INVENTORIES

The Company primarily uses the last-in, first-out ("LIFO") method of valuing inventory. Under this method, older costs are included in inventory, which may be higher or lower than current costs. Interim LIFO calculations are based on projections of expected year-end inventory levels and costs. The year-end projection is then allocated to the interim quarters on a pro-rata basis. Year-end LIFO calculations are based on actual inventory levels and costs.

See the Condensed Consolidated Balance Sheets for the June 30, 2026 and December 31, 2025 values of our inventory.

If current cost had been used to value inventories, such inventories would have been $178 million and $151 million higher than reported at June 30, 2026 and December 31, 2025, respectively. Approximately 57% and 87% of inventories were accounted for under the LIFO method at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026 non-LIFO inventories consist primarily of inventory at Olympic Steel facilities, which were acquired during the first quarter of 2026. These inventories are costed using the specific identification method or a weighted average rolling first-in, first-out ("FIFO") method. Other non-LIFO inventories consist of foreign facilities, where the Company uses the moving average cost and the specific cost methods to value inventory. As most metals products can be sold as-is to customers at various stages throughout processing, Ryerson considers substantially all inventories to be finished goods.

The Company has consignment inventory at certain customer locations, which totaled $5.9 million and $4.5 million at June 30, 2026 and December 31, 2025, respectively.