Derivatives

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of December 31, 2020, we had an open position of 194,116 tonnes related to LME forward financial sales contracts to fix the forward LME price. These contracts are expected to settle monthly through December 2024. We also had an open position of 318,000 tonnes related to Midwest Premium ("MWP") forward financial sales contracts to fix the forward MWP price. These contracts are expected to settle monthly through December 2022. We have also entered into financial contracts with various counterparties to offset fixed price sales arrangements with certain of our customers ("fixed for floating swaps") to remain exposed to the LME and MWP aluminum prices. As of December 31, 2020, we had 9,694 tonnes that will settle at various dates through December 2021.

We entered into financial contracts to fix the forward price for power related to the expected production of Line 4 at Hawesville for the period of January 2020 through December 2020 ("Hawesville L4 power price swaps"). As of December 31, 2020, the power price swaps had fully matured.

We have entered into financial contracts to hedge a portion of our exposure at our U.S operations to the NYMEX Henry Hub (“NYMEX Henry Hub natural gas price swaps”). The natural gas volume is measured per million British Thermal Units ("mmBTU"). As of December 31, 2020, we had an open position of 2,355,000 mmBTU. The NYMEX Henry Hub natural gas price swaps are expected to settle monthly through March 2021.

We have entered into financial contracts to hedge a portion of Grundartangi's exposure to the Nord Pool power market (the “NordPool power price swaps”). As of December 31, 2020, we had an open position of 1,830,840 MWh related to the Nord Pool power price swaps. The Nord Pool power price swaps are expected to settle monthly through December 2022. Because the Nord Pool power price swaps are settled in Euros, we have entered into financial contracts to hedge the risk of fluctuations associated with the Euro (the "FX swaps"). As of December 31, 2020, we had open positions related to the FX swaps for €40.3 million that settle monthly through December 2022.

The following table sets forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as cash flow hedges as of December 31, 2020 and 2019:


	Asset Fair Value
	2020		2019
Commodity contracts (1)	$	12.8	$	19.7
Foreign exchange contracts (2)	2.4		—
Total	$	15.2	$	19.7


	Liability Fair Value
	2020		2019
Commodity contracts (1)	$	16.7	$	3.6
Foreign exchange contracts (2)	—		0.6
Total	$	16.7	$	4.2

(1) Commodity contracts reflect our outstanding LME forward financial sales contracts, MWP forward financial sales contracts, fixed for floating swaps, NYMEX Henry Hub natural gas price swaps, and Nord Pool power price swaps. At December 31, 2020, $1.2 million of Due from affiliates, $1.7 million of Due from affiliates - less current portion, $11.3 million of Due to affiliates, and $0.1 million of Due to affiliates – less current portion is related to commodity contract assets and liabilities with Glencore. At December 31, 2019, $0.2 million of Due from affiliates and $0.5 million Due from affiliates - less current portion was related to commodity contract assets with Glencore.

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

The following table summarizes the net gain (loss) on forward and derivative contracts for the years ended December 31, 2020, 2019, and 2018:


	Year Ended December 31,
	2020		2019		2018
Commodity contracts (1)	$	(16.3)	$	12.9	$	6.6
Foreign exchange contracts	(1.0)		(0.9)		(0.3)
Total	$	(17.3)	$	12.0	$	6.3

(1) For the years ended December 31, 2020, 2019, and 2018, $(9.2) million, $2.0 million, and $(2.2) million of net gain (loss), respectively, was with Glencore.