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Derivative instruments
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments
Derivative instruments
As a global producer of primary aluminum, our operating results and cash flows from operations are subject to risk of fluctuations in the market prices of primary aluminum. We enter into financial contracts from time to time to manage our exposure to such risk. As of September 30, 2016, we had entered into LME forward financial sales contracts with Glencore to fix the forward LME price of approximately 45,000 tonnes of primary aluminum (the “Forward Sales Contracts”). The Forward Sales Contracts settle monthly, on a ratable basis, through December 31, 2017. From time to time, we enter into financial contracts to offset fixed price sales arrangements with certain of our customers. As of September 30, 2016, we had entered into such arrangements with respect to approximately 8,200 tonnes of primary aluminum (the “fixed for floating swaps”). Fixed for floating swaps settle at various dates up to and including January 2018.
We record our financial contracts at fair value in prepaid and other current assets, due from/to affiliates, or other liabilities in the consolidated balance sheets. We value our derivative instruments using quoted market prices and other significant unobservable inputs. These derivatives are not designated as cash flow hedges. We recognize changes in fair value and settlements of these derivative instruments in net gain (loss) on forward and derivative contracts in the consolidated statements of operations as they occur.
Changes in fair value and settlements of these derivative instruments are not material to the consolidated financial statements for all periods presented.