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HARBOR Announces Publication of NEW EUROPEAN P1020 and BILLET GREEN/LOW-CARBON ALUMINUM UPCHARGES

HARBOR FIRST ALERT.

ANNOUNCEMENT.

In response to a growing interest from European market participants for full coverage of the Green/Low-Carbon Aluminum spot and contractual prices, and after a period of consultation with stakeholders, HARBOR is pleased to announce the official launch of three new assessments:

  1. HARBOR’s ROTTERDAM DUTY-PAID P1020 SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE,
  2. HARBOR’s EUROPEAN FULL BILLET SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE,and
  3. HARBOR’s EUROPEAN FULL BILLET QUARTERLY GREEN/LOW CARBON ALUMINUM UPCHARGE.

These are regional assessments comparable to our existent US MW P1020 SPOT GREEN/LOW CARBON ALUMINUM UPCHARGE.

MARKET BACKGROUND.

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 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 ROTTERDAM DUTY-PAID P1020 SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE

Standard Specification: 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

Standard Specification: 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

Standard Specification: 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.