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Derivatives | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives As of June 30, 2024, we had an open position of 42,654 tonnes re lated to LME forward financial sales contracts to fix the forward LME aluminum price. These contracts are expected to settle monthly through July 2025. We also had an open position of 25,200 tonnes related to MWP forward financial sales contracts to fix the forward MWP price. These contracts are expected to settle monthly through July 2025. We also enter 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 June 30, 2024, we had no open fixed for floating swaps. We have entered into forward contracts to hedge the risk of fluctuations associated with the Icelandic Krona (ISK) and Euro for contracts related to the construction of the Grundartangi casthouse denominated in these currencies ("casthouse currency hedges"). As of June 30, 2024, we had no open casthouse currency hedges. We have entered into financial contracts to hedge a portion of our exposure at our 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 June 30, 2024 we had no open NYMEX Henry Hub natural gas price swaps. We have entered into financial contracts to hedge a portion of our Jamalco fuel cost exposure (“HFO price swaps”). The volume of heavy fuel oil ("HFO") consumed at Jamalco is measured per barrel and as of June 30, 2024, we had an open position of 240,000 barrels. The HFO price swaps are expected to settle monthly through May 2025. We have entered into financial contracts to fix a portion of our exposure to the Indiana Hub power market at our Sebree plant ("Indiana Hub power price swaps"). As of June 30, 2024, we had an open position of 460,080 MWh. The Indiana Hub power price swaps are expected to settle monthly through July 2025. Our agreements with derivative counterparties contain certain provisions requiring collateral to be posted in the event the market value of our position exceeds the margin threshold limit of our master agreement with the counterparty. As of June 30, 2024 and December 31, 2023, the Company had not recorded restricted cash as collateral related to open derivative contracts under the master arrangements with our counterparties. The following tables set forth the Company's derivative assets and liabilities that were accounted for at fair value and not designated as cash flow hedges as of June 30, 2024 and December 31, 2023, respectively:
|  | Asset Fair Value
|  | June 30, 2024 |  | December 31, 2023
Commodity contracts(1) |  | $ | 5.5 |  |  | $ | 2.9 |
|  | Liability Fair Value
|  | June 30, 2024 |  | December 31, 2023
Commodity contracts(1) |  | $ | 6.7 |  |  | $ | 7.8 |
Foreign exchange contracts(2) |  | — |  |  | 0.1 |
Total |  | $ | 6.7 |  |  | $ | 7.9 |
(1)Commodity contracts reflect our outstanding LME and MWP forward financial sales contracts, Indy Hub power price swaps, fixed for floating swaps, NYMEX Henry Hub natural gas price swaps, and HFO price swaps. At June 30, 2024, $4.0 million of Due to affiliates was related to commodity contracts with Glencore. At December 31, 2023, $6.4 million of Due to affiliates was related to commodity contract liab ilities with Glencore. (2)Foreign exchange contracts reflect our outstanding FX swaps and the casthouse currency hedges. The following table summarizes the net (loss) gain on forward and derivative contracts:
|  | Three months ended June 30, |  | Six months ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Commodity contracts(1) |  | $ | (4.0) |  |  | $ | 9.1 |  |  | $ | 3.5 |  |  | $ | (50.1) |
Foreign exchange contracts |  | — |  |  | 0.0 |  |  | (0.1) |  |  | 1.6 |
Total |  | $ | (4.0) |  |  | $ | 9.1 |  |  | $ | 3.4 |  |  | $ | (48.5) |
(1)For the three months ended June 30, 2024, $1.9 million of the net loss was with Glencore, and for the three months ended June 30, 2023, $11.4 million of the net gain was with Glencore. Comparatively, for the six months ended June 30, 2024 $2.5 million of the net gain was with Glencore, and for the six months ended June 30, 2023 $3.5 million of the net loss was with Glencore.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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