Derivatives

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of June 30, 2019, we had an open position of 96,506 tonnes related to LME forward financial sales contracts, some of which are with Glencore, to fix the forward LME price. These contracts are expected to settle monthly, between November 2019 and December 2024. We also have an open position related to Midwest Premium ("MWP") forward financial sales contracts to fix the forward MWP. As of June 30, 2019, we had an open position of 122,500 tonnes. These contracts are expected to settle monthly through December 2020.

In 2019, we entered into financial contracts to fix the forward price of Hawesville's power requirements for the period of January 1, 2020 through December 31, 2020, relating to the expected restart of Hawesville's Line 4 during the same period (the

"Hawesville L4 power price swaps") of 790,560 MWh. The Hawesville L4 power price swaps are expected to settle monthly during the term of the contract.

We have financial contracts with various counterparties, to offset fixed price sales arrangements with certain of our customers (the “fixed for floating swaps”) to remain exposed to the LME and MWP price. As of June 30, 2019, we had open positions related to such arrangements of 10,097 tonnes settling at various dates through June 2020.

In 2017, we entered into financial contracts to fix the forward price of approximately 4% of Grundartangi's total power requirements for the period November 2019 through December 2020 (the “Nord Pool power price swaps”). As of June 30, 2019, we had an open position of 256,200 MWh related to the Nord Pool power price swaps. Because the Nord Pool power price swaps are settled in euros, in 2018, we entered into financial contracts to hedge the risk of fluctuations associated with the euro (the "FX swaps"). As of June 30, 2019, we had open positions related to the FX swaps for €5.6 million that settle monthly from November 2019 through December 2020.

The following table sets forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as cashflow hedges as of June 30, 2019 and December 31, 2018:



	Asset Fair Value
	June 30, 2019		December 31, 2018
Commodity contracts⁽¹⁾	$	13.5	$	8.2
Foreign exchange contracts⁽²⁾	—		—
Total	$	13.5	$	8.2



	Liability Fair Value
	June 30, 2019		December 31, 2018
Commodity contracts ⁽¹⁾	$	6.6	$	2.2
Foreign exchange contracts⁽²⁾	0.5		0.3
Total	$	7.1	$	2.5

⁽¹⁾Commodity contracts reflect our outstanding LME forward financial sales contracts, MWP forward financial sales contracts, Hawesville L4 power price swaps, fixed for floating swaps, and Nord Pool power price swaps.

⁽²⁾Foreign exchange contracts reflect our outstanding FX swaps.

The following table summarizes the net (loss) gain on forward and derivative contracts:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019			2018
Commodity contracts⁽³⁾	$	6.1	$	1.2	$	0.6		$	1.9
Foreign exchange contracts	0.0		—		(0.2		)	—
Total	$	6.1	$	1.2	$	0.4		$	1.9

⁽³⁾For the three months ended June 30, 2019 and 2018,$1.8 million and $(0.3) million of the net (loss) gain, respectively, was with Glencore. For the six months ended June 30, 2019 and 2018,$0.8 million and $0.1 million of the net (loss) gain, respectively, was with Glencore.