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HARBOR Announces Publication of NEW EUROPEAN SLAB (1XXX, 3XXX, and 5XXX SERIES) ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE

HARBOR Announces Publication of
NEW EUROPEAN SLAB (1XXX, 3XXX, and 5XXX SERIES) ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE

ANNOUNCEMENT.

Following the recent spike in 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 the HARBOR’s EUROPEAN SLAB (1XXX, 3XXX, and 5XXX SERIES) ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE.

This announcement follows previous announcement of four other 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,
     
  3. HARBOR’s EUROPEAN FULL BILLET QUARTERLY GREEN/LOW CARBON ALUMINUM UPCHARGE,
     
  4. HARBOR’s EUROPEAN PRIMARY FOUNDRY ALLOY (A356.2) ANNUAL 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.

Standard Specification: 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.