One of the key items every buying or selling steel entity must understand are the various ways steel can be billed and the calculations needed in order to convert one billing method to another.

TMW = Theoretical Minimum Weight

TMW Decimal = minimum thickness ordered

TNW = Theoretical Nominal Weight

TNW Decimal = the thickness used for nominal weight billing

• Actual Weight: TMW decimal ÷ Average Decimal received X (times) TMW price = Actual price.
• Theoretical Nominal Weight (Nominal, TNW or sometimes called “book weight”): TMW decimal ÷ Theoretical Nominal Decimal X .9756 (what is this*) X TMW Price = Nominal Price. *.9756 is the difference between 40.8 (actual weight) and 41.82 (nominal weight). 40.8 is pounds for an actual weight piece of steel 1″ thick by 12″ X 12″ – 41.82 is the pounds of a nominal weight piece of steel 1″ think by 12″ X 12″.
• Linear Footage: TMW decimal X 40.8 X Price Per Pound X Width of Coil in Feet = Price per Linear Foot.
• Price Per Square Foot: TMW Price per Pound X 40.8 X TMW decimal = Price Per Square Foot.
• Price Per Sheet (PPS or Price per Piece): TMW Price per Pound X 40.8 X TMW Decimal X Square Footage of Sheet = Price per sheet (or price per piece).

Calculations to Convert Actual Weight Price to All Billing Methods

• TMW: (theoretical minimum weight) Average Decimal ÷ TMW Decimal X Actual Weight Price = TMW Price.
• TNW: (theoretical nominal weight) Average Decimal ÷ TNW Decimal X .9756 X Actual Weight Price = TNW Price.
• LF: (linear foot) Average Decimal X 40.8 X Per Pound Price X Linear feet in Coil = Price per Linear foot.
• Square Foot: Actual Weight Price per Pound X 40.8 X Average Decimal = Price Per Square Foot.
• Price Per Sheet: (PPS) Actual Weight Price per Pound X 40.8 X Average Decimal X Square Footage of Sheet = Price per Sheet.

Calculations to Convert Theoretical Nominal Weight Price to All Billing Methods

• TMW: (theoretical minimum weight) Theoretical Nominal Weight Decimal ÷ TMW Decimal ÷ .9756 X TNW Price = TMW Price.
• Actual: TNW Decimal ÷ Average Decimal ÷ .9756 X TNW Price = Actual Weight Price.
• Linear Foot: TNW Decimal X 41.82 X TNW Price per Pound X Width of Coil in Feet = Price per Linear Foot.
• Square Foot: TNW Price per Pound X 41.82 X TNW Decimal = Price per Square Foot.
• Price Per Sheet (PPS): TNW Price per Pound X 41.82 X TNW Decimal X Square feet in Sheet = Price per Sheet.

Calculations to Convert Linear Footage (LF) Pricing to All Billing Methods

• TMW: (theoretical minimum weight) Linear Foot Price ÷ Width of Coil in Feet ÷ 40.8 ÷ TMW Decimal = TMW Price per Pound.
• Actual: Linear Foot Price ÷ Width of Coil in Feet ÷ 40.8 ÷ Average Decimal = Actual Weight Price per Pound.
• TNW (theoretical nominal weight) Linear Foot Price ÷ Width of Coil in Feet ÷ 41.82 ÷ TNW Decimal = Theoretical Nominal Price per Pound.
• Square Foot: Linear Foot Price ÷ Width of Coil in Feet = Price per square foot.

Calculations to Convert Price Per Sheet to All Billing Methods

• TMW (theoretical minimum weight): Price Per Sheet ÷ Square Footage of Sheet ÷ 40.8 ÷ TMW Decimal = TMW Price per Pound.
• Actual: Price per Sheet ÷ Square Footage of Sheet ÷ 40.8 ÷ Average Decimal = Actual Price per Pound.
• TNW (theoretical nominal weight): Price per Sheet ÷ Square Footage of Sheet ÷ 41.82 ÷ Theoretical Nominal Decimal = Theoretical Nominal Price per Pound.
• Square Foot: Price per Sheet ÷ Square Footage of Sheet = Price per Square Foot.

Calculations to Convert All Billing Methods to Square Footage Pricing

• TMW (theoretical minimum weight): TMW Decimal X 40.8 X Price per Pound = Price per Square Foot.
• Actual: Average Decimal X 40.8 X Price per Pound = Price per Square Foot.
• TNW (theoretical nominal weight): TNW Decimal X 41.82 X Price per Pound = Price per Square Foot.
• Linear Footage: Price per Linear Foot ÷ Width of Coil in Feet = Price per Square Foot.
• Price Per Sheet (PPS): Price Per Sheet ÷ Square Feet in Sheet = Price per Square Foot.