GREEN ALUMINUM PREMIUMS
HARBOR launches the world’s first Green/Low Carbon aluminum assessments
Context. As environmental awareness and responsibility continue to grow in the global aluminum market, producers and consumers worldwide and across the entire value chain have increased their involvement in multiple initiatives to reduce greenhouse gas emissions in the production process, and to increase the consumption of aluminum produced under the most clean and sustainable requirements.
In response to the rapid rise of sustainability awareness and given growing requests from our clients, HARBOR launched the world's first green aluminum premium assessments:
- HARBOR’s US MW P1020 SPOT GREEN/LOW-CARBON ALUMINUM PREMIUM
(Launched October 30, 2019). - HARBOR’s ROTTERDAM DUTY-PAID P1020 SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE
(Launched January 21, 2021), - HARBOR’s EUROPEAN FULL BILLET SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE
(Launched January 21, 2021), - HARBOR’s EUROPEAN FULL BILLET QUARTERLY GREEN/LOW CARBON ALUMINUM UPCHARGE
(Launched January 21, 2021), - HARBOR’s EUROPEAN PRIMARY FOUNDRY ALLOY (A356.2) ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE
(Launched January 29, 2021). - HARBOR’s EUROPEAN SLAB (1XXX, 3XXX, and 5XXX SERIES) ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE
(Launched February 12, 2021). - HARBOR’s EUROPEAN 1350 EC ROD ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE (Launched March 17, 2021).
According to HARBOR’s estimates, the worldwide primary aluminum industry operated in 2020 with an average carbon footprint of 11.2 kg of CO2 emitted per kg of primary aluminum produced with Level 1 disclosure calculated per IAI’s “Aluminium Carbon Footprint Technical Support Document (2018)”. Level 1 only includes smelter emissions scope 1 and 2 (including anode production and casting operations) and does not include alumina refining and bauxite mining emissions scope 1 and 2. Green/Low Carbon Aluminum is considered by HARBOR to be produced with a 4.0 or less kg of CO2 emitted per kg of primary aluminum produced.
According to HARBOR’s estimates, ROW’s (world excluding China) production of Green/Low-Carbon P1020 aluminum in the form of ingot/t-bar/sow is calculated to be around 6.7 million mton, or around 45%-49% of ROW’s total P1020 production expected in 2021. Meanwhile, ROW’s production of Green/Low-Carbon Aluminum Billet is around 2.7 million mton, or about 48% of ROW’s total billet production expected in 2021.
Russia, Canada, Norway, Iceland, and Brazil are the leading countries in the production of low-carbon/green primary aluminum units, where hydroelectric is the most common power source for the production of primary aluminum.
HARBOR’s US MW P1020 SPOT GREEN/LOW-CARBON ALUMINUM PREMIUM (Launched October 30, 2019).
Specifications.
Daily duty-paid premium paid over the London Metal Exchange cash price and Midwest P1020 premium for spot physical 99.7% high-grade aluminum with 4.0 kg or less of CO2 emitted per kilogram of aluminum produced, calculated according to Level 1 disclosure per IAI’s “Aluminium Carbon Footprint Technical Support Document (2018)”. Level 1 only includes smelter emissions scope 1 and 2 (including anode production and casting operations) and does not include alumina refining and bauxite mining emissions scope 1 and 2.
Calculations of CO2 emissions according to IAI’s Aluminium Carbon Footprint Technical Support Document. Product traceable to a single smelter, delivered at US consumer plant in the Midwest area, on transactions between consumers and suppliers for volumes of 100 mton or higher, arrival within 7-30 days, net-30-day credit terms and standard credit risk.
Includes business for LME-deliverable units (ingot, low-profile sow or T-bars), any origin 99.7% aluminum or better sold as P1020, basis delivery US Midwest via truck or rail.
Premium will reflect physical spot transactions where reported buyers and sellers are both considered not to have a conflict of interest (i.e. downstream company not affiliated to an upstream company and/or without relevant third-party sales of primary or secondary metal), using a representative sample of end-users (sheet mills, extruders, rolling mills, etc.), producers and traders.
The range assessment reflects the most widely tradable and repeatable premium prevailing at the close of US business, after 3:00pm US Central time.
HARBOR’s ROTTERDAM DUTY-PAID P1020 SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE (Launched January 21, 2021),
Specifications.
Daily duty-paid premium paid over the London Metal Exchange cash price and In-Warehouse Rotterdam P1020 Ingot Duty-Paid Spot Premium for spot physical 99.7% high-grade aluminum with 4.0 kg or less of CO2 emitted per kg of aluminum produced according to Level 1 disclosure per IAI’s “Aluminium Carbon Footprint Technical Support Document (2018)”. Level 1 only includes smelter emissions scope 1 and 2 (including anode production and casting operations) and does not include alumina refining and bauxite mining emissions scope 1 and 2.
Product traceable to a single smelter, in-warehouse Rotterdam terms, on transactions between consumers and suppliers for volumes of 100 mton or higher, arrival within 7-30 days, net-30-day credit terms and standard credit risk.
Includes business for LME-deliverable units (ingot, low-profile sow or T-bars), any origin 99.7% aluminum or better sold as P1020.
Upcharge will reflect physical spot transactions where reported buyers and sellers are both considered not to have a conflict of interest (i.e. downstream company not affiliated to an upstream company and/or without relevant third-party sales of primary or secondary metal), using a representative sample of end-users (sheet mills, extruders, rolling mills, etc.), producers and traders.
The range assessment reflects the most widely tradable and repeatable premium prevailing at the close of US business, after 3:00pm US Central time.
HARBOR’s EUROPEAN FULL BILLET SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE (Launched January 21, 2021),
Specifications.
Daily upcharge paid over the HARBOR’s Europe full billet premium for spot physical alloy 6063 billet logs of 7-9-inch diameter, produced with 4.0 kg or less of CO2 emitted per kg of aluminum according to Level 1 disclosure per IAI’s “Aluminium Carbon Footprint Technical Support Document (2018)”. Level 1 only includes smelter emissions scope 1 and 2 (including anode production and casting operations) and does not include alumina refining and bauxite mining emissions scope 1 and 2.
Product traceable to a single smelter, delivered at European consumer plant, on transactions between consumers and suppliers for volumes of 100 mton or higher, arrival within 7-30 days, net-30-day credit terms and standard credit risk.
Upcharge will reflect physical spot transactions where reported buyers and sellers are both considered not to have a conflict of interest, using a representative sample of end-users, producers and traders.
The range assessment reflects the most tradable and repeatable upcharge prevailing throughout the North and South of Europe at the close of US business, after 3:00pm US Central time.
HARBOR’s EUROPEAN FULL BILLET QUARTERLY GREEN/LOW CARBON ALUMINUM UPCHARGE (Launched January 21, 2021),
Specifications.
Quarterly contractual upcharge paid over HARBOR’s Europe full billet quarterly contract premium for physical alloy 6063 billet logs of 7-9-inch diameter, to be delivered throughout the immediate quarter of the year, produced with 4.0 kg or less of CO2 emitted per kg of aluminum according to Level 1 disclosure per IAI’s “Aluminium Carbon Footprint Technical Support Document (2018)”. Level 1 only includes smelter emissions scope 1 and 2 (including anode production and casting operations) and does not include alumina refining and bauxite mining emissions scope 1 and 2.
Product traceable to a single smelter, delivered at European consumer plant, on transactions between consumers and suppliers for more than 100 mton or higher of monthly deliveries within the contractual period, net-30-day credit terms and standard credit risk.
Upcharge will reflect physical contractual transactions where reported buyers and sellers are both considered not to have a conflict of interest, using a representative sample of end-users, producers and traders.
The range assessment reflects the most repeatable next-quarter contractual upcharges prevailing throughout the North and South of Europe by the end of the current quarter.
HARBOR’s EUROPEAN PRIMARY FOUNDRY ALLOY (A356.2) ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE (Launched January 29, 2021).
Specifications.
Annual contractual upcharge paid over HARBOR’s Europe PFA small ingot (A356.2) annual contract premium, for physical Primary Foundry Alloy A356.2 small ingots to be delivered throughout a calendar year and produced with 4.0 kg or less of CO2 emitted per kg of aluminum according to Level 1 disclosure per IAI’s “Aluminium Carbon Footprint Technical Support Document (2018)”. Level 1 only includes smelter emissions scope 1 and 2 (including anode production and casting operations) and does not include alumina refining and bauxite mining emissions scope 1 and 2.
Product traceable to a single smelter, delivered at European consumer plant, on transactions between consumers and suppliers for more than 100 mton or higher of monthly deliveries within the contractual period, net-30-day credit terms and standard credit risk.
Upcharge will reflect physical contractual transactions where reported buyers and sellers are both considered not to have a conflict of interest, using a representative sample of end-users, producers and traders.
The range assessment reflects the most repeatable annual contractual upcharges prevailing throughout Europe by the end of the current calendar year.
HARBOR’s EUROPEAN SLAB (1XXX, 3XXX, and 5XXX SERIES) ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE (Launched February 12, 2021).
Specifications.
Annual contractual upcharge paid over the full European Slab price (European P1020 Premiums + LME cash price for spot physical 99.7% high-grade aluminum + European Slab Spot Upcharge), for physical spot 1xxx, 3xxx, or 5xxx series slab to be delivered throughout a calendar year and produced with 4.0 kg or less of CO2 emitted per kg of aluminum according to Level 1 disclosure per IAI’s “Aluminium Carbon Footprint Technical Support Document (2018)”. Level 1 only includes smelter emissions scope 1 and 2 (including anode production and casting operations) and does not include alumina refining and bauxite mining emissions scope 1 and 2.
Product traceable to a single smelter, delivered at European consumer plant, on transactions between consumers and suppliers for more than 1000 mton or higher of monthly deliveries within the contractual period, net-30-day credit terms and standard credit risk.
Upcharge will reflect physical contractual transactions where reported buyers and sellers are both considered not to have a conflict of interest, using a representative sample of end-users, producers and traders.
The range assessment reflects the most repeatable annual contractual upcharges prevailing throughout Europe by the end of the current calendar year.
HARBOR’s EUROPEAN 1350 EC ROD ANNUALGREEN/LOW-CARBON ALUMINUM UPCHARGE (Launched March 17, 2021).
Specifications.
Annual contractual upcharge paid over the European Full 1350 EC Rod Duty-paid Delivered Spot Transaction Premium (LME cash price for spot physical 99.7% high-grade aluminum + European In-warehouse Rotterdam P1020 Ingot Duty-paid Spot Transaction Premium + European 1350 EC Rod Duty-Paid Delivered Spot Transaction Premium), for physical 1350 EC Rod to be delivered throughout a calendar year and produced with 4.0 kg or less of CO2 emitted per kg of aluminum according to Level 1 disclosure per IAI’s “Aluminium Carbon Footprint Technical Support Document (2018)”. Level 1 only includes smelter emissions scope 1 and 2 (including anode production and casting operations) and does not include alumina refining and bauxite mining emissions scope 1 and 2.
Product traceable to a single smelter, delivered at European consumer plant, on transactions between consumers and suppliers for more than 500 mton or higher of monthly deliveries within the contractual period, net-30-day credit terms and standard credit risk.
Upcharge will reflect physical contractual transactions where reported buyers and sellers are both considered not to have a conflict of interest, using a representative sample of end-users, producers and traders.
The range assessment reflects the most repeatable annual contractual upcharges prevailing throughout Europe by the end of the current calendar year.
To access our full US and European GREEN/LOW-CARBON ALUMINUM Market Intel and Premium assessments, please subscribe to our specialized Daily Aluminum Commentary Report.