ANNOUNCEMENT.
Following the 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 the HARBOR’s EUROPEAN 1350 EC ROD ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE.
This announcement follows previous publication of five other new assessments:
- HARBOR’s ROTTERDAM DUTY-PAID P1020 SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE,
- HARBOR’s EUROPEAN FULL BILLET SPOT GREEN/LOW-CARBON ALUMINUM UPCHARGE,
- HARBOR’s EUROPEAN FULL BILLET QUARTERLY GREEN/LOW CARBON ALUMINUM UPCHARGE,
- HARBOR’s EUROPEAN PRIMARY FOUNDRY ALLOY (A356.2) ANNUAL GREEN/LOW-CARBON ALUMINUM UPCHARGE,
- HARBOR’s EUROPEAN SLAB (1XXX, 3XXX, and 5XXX SERIES) 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 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.