U.S. Department of the Interior

U.S. Geological Survey

Aluminum Recycling in the United States in 2000

By Patricia A. Plunkert

U.S. Geological Survey Circular 1196–W

Flow Studies for RECYCLING METAL COMMODITIES IN the United States

III

Foreword

As world population increases and the world economy expands, so does the demand for natural resources. An accurate assessment of the Nation’s mineral resources 

must include not only the resources available in the ground but also those that become 

available through recycling. Supplying this information to decisionmakers is an essential part of the USGS commitment to providing the science that society needs to meet 

natural resource and environmental challenges.

The U.S. Geological Survey is authorized by Congress to collect, analyze, and 

disseminate data on the domestic and international supply of and demand for minerals 

essential to the U.S. economy and national security. This information on mineral occurrence, production, use, and recycling helps policymakers manage resources wisely. 

USGS Circular 1196, “Flow Studies for Recycling Metal Commodities in the 

United States,” presents the results of flow studies for recycling 26 metal commodities, from aluminum to zinc. These metals are a key component of the U.S. economy. 

Overall, recycling accounts for more than half of the U.S. metal supply by weight and 

roughly 40 percent by value. 

Charles G. Groat

Director
IV

Contents

Foreword .......................................................................................................................III

Abstract.......................................................................................................................W1

Introduction..............................................................................................................1

Global Geologic Occurrence of Aluminum.............................................................1

Production Technology............................................................................................3

Uses..........................................................................................................................3

Prices........................................................................................................................5

Sources of Aluminum Scrap ...........................................................................................7

Old Scrap Generated................................................................................................8

New Scrap................................................................................................................8

Disposition of Aluminum Scrap .....................................................................................8

Old Scrap Recycling Efficiency......................................................................................8

Infrastructure...................................................................................................................9

Trade ......................................................................................................................10

Processing of Aluminum Scrap ....................................................................................10

Reverberatory (Reverb) Dry Hearth Melter...........................................................11

Side-Bay Hearth Melter.........................................................................................11

Stack Melter...........................................................................................................11

Rotary Furnace.......................................................................................................11

Induction Furnace ..................................................................................................11

Outlook .........................................................................................................................12

References Cited ...........................................................................................................12

Appendix—Definitions.................................................................................................14

Figures

1. Flow diagram showing U.S. aluminum materials flow in 2000...........................W2

2. Graph showing U.S. aluminum consumption, by end-use sector, from 1980 

through 2000............................................................................................................5

3. Graph showing annual average U.S. primary aluminum metal prices from

1980 through 2000...................................................................................................6

Table

1. Salient statistics for U.S. aluminum scrap in 2000..............................................W9
V

Conversion Factors

Multiply By To obtain

Mass

kilogram (kg) 2.205 pound avoirdupois (lb)

metric ton (t, 1,000 kg) 1.102 ton, short (2,000 lb)
W1

Flow Studies for Recycling Metal Commodities in the United States

Aluminum Recycling in the United States in 2000

By Patricia A. Plunkert

present locations, but most are residual accumulations from which 

most constituents of the parent rock, other than alumina (Al2O3), 

have been leached. Conditions favorable for the formation of bauxite are warm tropical climate, abundant rainfall, aluminous parent 

rocks that have high permeability and good subsurface drainage, 

and long periods of tectonic stability that permit deep weathering 

and preservation of land surfaces (Patterson and Dyni, 1973).

Bauxite occurs in rocks that range in age from Precambrian to 

Holocene, and many deposits in the tropics are probably still forming. Most deposits of gibbsitic bauxite are located in the tropics. A 

few occur in the temperate belts, but the climate was probably tropical or subtropical at the time they were formed. Nearly all gibbsite 

type deposits are of Cenozoic age. Deposits of boehmitic bauxite 

occur chiefly in southern Europe, the Commonwealth of Independent States (CIS), Turkey, and China. Most boehmite deposits are 

associated with carbonate rocks of Jurassic and Cretaceous age 

but a few are of Paleozoic age. Though most of these deposits are 

north of the tropics, they could have formed under tropical conditions. Mixed bauxites containing gibbsite and boehmite tend to be 

more abundant in Paleozoic and Mesozoic deposits than in younger 

rocks (Patterson and others, 1986, p. B1).

In 2000, 22 countries reported bauxite mine production. 

Australia, Brazil, Guinea, and Jamaica accounted for about 70 

percent of the total bauxite mined that year. The aluminum 

industry consumes nearly 90 percent of the bauxite mined; the 

remainder is used in many different types of abrasives, chemicals, refractories, and miscellaneous products. This study addresses only the flow of metallurgical-grade bauxite, which is 

bauxite that ultimately is converted to aluminum metal.

The proportion of trihydrate and monohydrate ores in 

this type of bauxite differs from deposit to deposit as do the 

type and amount of impurities like clay, iron oxide, silica, and 

titania. Most commercial bauxites have a minimum Al2O3

content of 50 to 55 percent with a texture that ranges from 

powdery clay to hard indurated masses. There is often greater 

tolerance for variations in impurity levels in bauxites used for 

metal production than those used for other applications, such 

as abrasives and refractories (Russell, 1999, p. 19-20).

Production Technology

The extraction of aluminum from its ore and subsequent 

processing into finished products takes place in a series of sucAbstract

As one of a series of reports on metals recycling, this report discusses the flow of aluminum from production through 

its uses with particular emphasis on the recycling of industrial 

scrap (new scrap) and used products (old scrap) in 2000. This 

materials flow study includes a description of aluminum supply 

and demand factors for the United States to illustrate the extent 

of aluminum recycling and to identify recycling trends. Understanding the system of materials flow from source to ultimate 

disposition can assist in improving the management of natural 

resources in a manner that is compatible with sound environmental practices. In 2000, the old scrap recycling efficiency for 

aluminum was estimated to be 42 percent. Almost 60 percent of 

the aluminum that was recycled in 2000 came from new scrap, 

and the recycling rate was estimated to be 36 percent. The principal source of old scrap was recycled aluminum beverage cans.

Introduction

This materials flow study of aluminum, as shown in figure 

1, is intended to provide a snapshot of the flow of materials 

through the U.S. aluminum industry in 2000. It identifies 

sources and distribution of U.S. aluminum supply with particular emphasis on the flow of aluminum scrap. In 2000, approximately 36 percent of the aluminum supply in the United 

States came from recycled aluminum.

Global Geologic Occurrence of Aluminum

Aluminum is the third most abundant element in the Earth’s 

crust, surpassed in abundance only by oxygen and silicon. Although it comprises about 8 percent of the Earth’s crust, it is 

not found free in nature, but always in combination with other 

elements. Bauxite, which is a rock that consists of one or more 

aluminum hydroxide minerals, is the principal raw material used 

by the aluminum industry for the production of aluminum metal. 

The types of bauxite used are trihydrate, which consists chiefly 

of gibbsite, Al2O3•3H2O; monohydrate, which consists mainly 

of boehmite, Al2O3•H2O; and mixed bauxite, which consists of 

gibbsite and boehmite. Bauxite deposits have formed chiefly by the 

weathering of aluminous rock; some have been transported to their 
W2 FLOW STUDIES FOR RECYCLING METAL COMMODITIES IN THE UNITED STATES

Figure 1. U.S. aluminum materials flow in 2000. Values are in thousand metric tons of contained metal. UBCs refers to used beverage cans.

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ALUMINUM RECYCLING IN THE UNITED STATES IN 2000 W3

cessive operations, each of which is largely independent of the 

other and generally located at different plant sites. After the 

bauxite is mined, it is sent to a refinery for conversion to alumina and finally to a smelter to extract the metal. The metal, 

which is either molten or cast into ingots and billets, is sent 

to fabrication plants where it is rolled, extruded, or cast into 

plates, sheets, bars, and other shapes. These semifabricated 

products are manufactured into consumer products.

Most bauxite ores are mined by open pit methods, and 

treatment at the mine site is usually confined to crushing, 

washing, and drying operations. Ore that is transported appreciable distances is often dried before shipment, which can result in savings in shipping costs that will more than offset the 

drying costs. The degree to which a specific bauxite is dried 

depends in part on its handling and dusting characteristics.

The starting material for electrolytic smelting of aluminum is pure anhydrous aluminum oxide (Al2

O3) called 

alumina. Virtually all alumina commercially produced from 

bauxite is obtained by a process patented by Karl Josef Bayer 

(Austria) in 1888. The Bayer process involves a caustic leach 

of the bauxite at elevated temperature and pressure followed 

by separation of the resulting sodium aluminate solution and 

selective precipitation of the aluminum as the hydrated aluminum oxide (Al2

O3•3H2O). The filtered and washed alumina 

trihydrate is then calcined for use in making metal.

Throughout the world, primary aluminum is produced by 

the electrolysis of alumina in molten fluoride salt. This is, in essence, the process that Charles Martin Hall (United States) and 

Paul Louis Toussaint Héroult (France) independently invented 

in 1886, which is named after them, though its efficiency has 

been significantly improved over the years. In the Hall-Héroult 

process, alumina is dissolved in an electrolyte of molten cryolite (Na3

AlF6). For each metric ton of aluminum produced, 

the smelting process consumes, in addition to large amounts 

of electrical energy, about 1.95 metric tons of alumina. As the 

electric current flows through the electrolyte, it reduces the dissolved alumina into its component elements as metallic aluminum and oxygen gas. When the oxygen reacts with the carbon 

anodes, bubbles of carbon monoxide and carbon dioxide gas are 

formed. Liquid aluminum settles on the bottom of the cell and 

periodically is siphoned off by vacuum into crucibles. The metal, in either molten or cast form, is then transferred to plants that 

produce plate, sheet, bar, forgings, cast parts, and other semifabricated products before being sent to fabricators that produce 

finished products for the consumer (Altenpohl, 1998, p. 7-25).

Uses

Aluminum is used in virtually all segments of the economy. Its physical properties enhance its versatility. The metal 

is lightweight, ductile, malleable, and corrosion resistant and 

is a good conductor of heat and electricity. Unalloyed aluminum is soft and has limited strength. The addition of small 

quantities of alloying elements, such as copper, magnesium, 

manganese, nickel, silicon, and zinc, can increase the hardness, strength, and other properties of aluminum. Adding to 

aluminum’s adaptability is the fact that it can be fabricated 

into desired forms and shapes by every major metalworking 

technique—cast, rolled, forged, extruded, drawn, or machined.

Aluminum in alloyed and unalloyed forms is suitable for 

use in a wide variety of products for the consumer and capital 

goods markets. The largest markets are transportation, packaging, construction, electrical, consumer durables, and machinery and equipment (fig. 2).

Figure 2. U.S. aluminum consumption, by end-use sector, from 1980 through 2000. CONSUMPTION, IN TOUSAND METRIC TONS

1980 1982 1984 1986

YEAR

1988 1990 1992 1994 1996 1998 2000

8,000

6,000

4,000

2,000

0

EXPLANATION

Other

Machinery

Electrical

Consumer durables

Construction

Packaging

Transportation
W4 FLOW STUDIES FOR RECYCLING METAL COMMODITIES IN THE UNITED STATES

The transportation sector, which is the largest single 

market for aluminum worldwide, includes the manufacture 

of automobiles, buses, trailers, ships, railroad and subway 

cars, as well as aerospace applications and mobile homes. In 

recent years, aluminum has made significant inroads into the 

automotive industry. Its light weight and recyclability have 

provided the impetus for the increased use of aluminum to 

help meet new and more stringent corporate average fuel efficiency (CAFE) standards. The use of aluminum for truck and 

automobile engine blocks and cylinder heads, heat exchangers, 

transmission housings, engine parts, and wheels has increased 

steadily during the past decade. Aluminum use in some body 

sheet applications has increased as well. In 2000, automotive 

and light truck applications represented approximately 20 percent of U.S. aluminum shipments, which was equivalent to an 

average aluminum content of 117 kilograms (kg) (257 pounds) 

per vehicle (Aluminum Association Inc., undated b).

The International Aluminium Institute (undated b) has 

estimated that 90 percent of truck trailers have aluminium bodies as do long-distance buses and cargo containers. Aluminum 

components reduce the weight of tractor-trailers, which allows 

them to reduce fuel costs and to carry a bigger load without 

exceeding highway weight limits.

The success of the modern commercial aviation industry 

has depended upon aluminum. The metal’s combination of 

lightness, strength, and workability, as well as its abundance 

and low cost, makes it an ideal material for mass-produced 

commercial aircraft. Aluminum, which is the primary aircraft 

material, comprises about 80 percent of an aircraft’s unladen 

weight. The standard Boeing 747 jumbo jet contains approximately 75,000 kg of aluminum (International Aluminium 

Institute, undated a). 

In the United States, aluminum used by the packaging 

and container industry in such products as beverage cans, food 

containers, and household and institutional foil ranked second 

to transportation in total shipments. The largest single segment of this market is aluminum beverage cans. As reported 

by the Can Manufacturers Institute (2001, p. 16), aluminum 

beverage can shipments in the United States were approximately 100 billion cans in 2000. Beverage cans in the United 

States are made almost exclusively of aluminum. Because of 

consumer preference, however, aluminum faces stiffer competition from steel cans and glass and plastic containers in other 

areas of the world and, therefore, accounts for a smaller percentage of total beverage container demand in those countries. 

In addition to competition from other materials, the evolution 

of manufacturing technology has also affected aluminum demand 

in the container industry. The first use of aluminum in beverage 

containers was the easy-open ring-pull aluminum ends on tinplate 

cans. The first all aluminum can was introduced in the late 1960s. 

Over time, the thickness of aluminum can body stock has been 

significantly reduced, which has led to an increased yield of cans 

per pound of aluminum. The average yield of cans per pound of 

aluminum has increased by 50 percent to more than 33 cans in 

2000 from just under 22 cans in 1972 (Aluminum Association Inc., 

2001). This increased yield, which lowered the aluminum can’s 

average unit cost and weight, has contributed to its overall growth 

and dominance over steel in the beverage container industry.

Aluminum foil is used in containers and packaging for 

food, cosmetics, and pharmaceuticals. Foil is light, strong, 

flexible, and durable and provides a barrier against light, odor, 

moisture, and bacteria.

The third largest domestic market for aluminum and the 

largest market in most other areas of the world is the building and construction industry. An estimated 20 percent of the 

world’s aluminum production goes into the building and construction sector principally in the form of sheet and extrusions. 

In Europe alone, consumption of aluminum for construction 

has risen to more than 1.5 million metric tons per year (Mt/yr) 

in 2000 from more than 100,000 metric tons per year (t/yr) in 

1960. Exterior building applications include curtain walling, 

window frames, siding and roofing, greenhouses and conservatories, scaffolding and ladders, and, more recently, the 

supporting frames for solar panels. Interior uses include partitions, cast door handles, staircases, and heating and air conditioning systems. Aluminum’s high strength-to-weight ratio 

allows architects to meet desired performance specifications 

while minimizing the load on a building’s support structure. 

Other advantages are long service life, low maintenance, and 

design flexibility (Metal Bulletin Monthly, 2001). 

The foregoing are the three dominant markets for aluminum. Its physical and chemical characteristics, however, make 

aluminum suitable for a myriad of other applications, such 

as transmission wiring, consumer durables, signage, sporting 

equipment, and cookware. 

Prices

The monthly average U.S. market price of primary aluminum metal fluctuated throughout 2000. The average began the 

year at 80.1 cents per pound and by December had fallen to 

74.3 cents per pound. The average price for the year, however, 

increased to 74.6 cents per pound in 2000 from 65.7 cents per 

pound in 1999. The London Metal Exchange (LME) cash 

price for high-grade primary aluminum ingot followed the 

same general trend as the U.S. market price. The 2000 average annual LME cash price was 70.3 cents per pound (Platts 

Metals Week, 2001).

Purchase prices for aluminum scrap, which closely track 

those for primary metal, also fluctuated during the year and 

closed at lower levels than those at the beginning of the year. 

The yearend price ranges for selected types of aluminum scrap 

were as follows: mixed low-copper-content aluminum clips, 

47.5 to 48.5 cents per pound; clean dry aluminum turnings, 40 

to 41 cents per pound; and old sheet and cast aluminum, 38.5 

to 39.5 cents per pound. Aluminum producers’ buying price 

range for processed and delivered aluminum used beverage 

cans (UBCs) also closed lower at yearend. The price range 
ALUMINUM RECYCLING IN THE UNITED STATES IN 2000 W5

began the year at 57 to 59 cents per pound and closed the year 

at 53 to 54 cents per pound (American Metal Market, 2001a). 

The monthly average transaction price for aluminum UBCs 

also decreased during 2000. The monthly average began the 

year at 62.9 cents per pound and had fallen to 53.9 cents per 

pound by December. Similar to the trend of the U.S. market 

price of primary aluminum ingot, however, the annual average 

transaction price of 57.7 cents per pound for aluminum UBCs 

in 2000 was higher than the 1999 annual average of 50.6 cents 

per pound (Container Recycling Report, 2001).

The yearend indicator prices for selected secondary aluminum alloy ingots also decreased significantly compared 

with those of 1999. The closing prices for 2000 were as follows: alloy 380 (1 percent zinc content), 68.7 cents per pound; 

alloy 360 (0.6 percent copper content), 74.1 cents per pound; 

alloy 413 (0.6 percent copper content), 73.8 cents per pound; 

and alloy 319, 72.7 cents per pound (American Metal Market, 

2001b). The annual average U.S. market price for A-380 alloy 

(3 percent zinc content) in 2000 was 65.6 cents per pound, and 

the average annual LME cash price for a similar 380 alloy was 

55.2 cents per pound (Platts Metals Week, 2001).

From the late 1970s and throughout the 1980s, aluminum 

prices, for the most part, reflected the law of supply and demand (fig. 3). During the early 1980s, the aluminum industry 

suffered from a period of oversupply, high inventories, excess 

capacity, and weak demand, which caused aluminum prices to 

tumble. By 1986, excess capacity had been permanently closed, 

inventories were low, and the worldwide demand for aluminum 

made a dramatic surge upward. This extremely tight supply and 

demand situation, which continued throughout 1987 and 1988, 

brought about a dramatic increase in aluminum prices.

During the 1990s, the speculative effect of the futures 

market began to exert its presence on aluminum prices. Prices 

were not only reacting to the laws of supply and demand, but 

also to the perceived direction of the market as reflected on the 

futures exchanges.

In the early 1990s, the major influence on aluminum prices was the dissolution of the Soviet Union. To generate hard 

currency, large quantities of Russian aluminum ingot entered 

the world market. Unfortunately, the aluminum market had 

just entered an economic downturn and was unable to absorb 

the Russian material. This period of oversupply, decreasing 

demand, and increasing inventories depressed world aluminum 

prices.

By the mid-1990s, production cutbacks, increased demand, declining inventories, and the perceived improvement 

in the world market led to a dramatic rebound in aluminum 

prices. Prices began to cycle downward again during the late 

1990s as the economic crisis in the Asian market exerted pressure on the prices of several commodities, which included 

aluminum. Once again, the aluminum market was entering a 

period of oversupply. The perceived downward influences of 

the Asian crisis, however, may have hastened the decline in 

prices before the actual oversupply condition in the marketplace (Plunkert, 1999).

Sources of Aluminum Scrap

The secondary aluminum industry started shortly before 

World War I at a time when the United States had only one 

primary aluminum producer. A secondary industry was not 

Figure 3. Annual average U.S. primary aluminum metal prices from 1980 through 2000. 

Source: Platts Metals Week. PRICE, IN CENTS PER POUND 

1980 1982 1984 1986

YEAR

1988 1990 1992 1994 1996 1998 2000

120

100

80

60

40

20

0
W6 FLOW STUDIES FOR RECYCLING METAL COMMODITIES IN THE UNITED STATES

needed prior to that time because the supply of aluminum 

scrap was limited. Although the secondary industry did grow 

during World War I and thereafter, that growth was modest 

until World War II. Secondary smelters emerged from the war 

years with the technology needed to process huge quantities 

of aircraft scrap and aluminum product manufacturing (new) 

scrap (Plunkert, 1990).

Aluminum recovery from scrap has become an important 

component of the supply and demand relationship in the United 

States. Increased costs for energy and growing concerns over 

waste management have provided the impetus for increased 

recycling rates, but it is the economics of recycling that has 

sustained the growth of the market for recycled aluminum. Only 

about 5 to 8 percent of the energy required to produce primary 

aluminum ingot is needed to produce recycled aluminum ingot. 

In addition, to achieve a given output of ingot, recycled aluminum requires only about 10 percent of the capital equipment 

compared with primary aluminum. The economics of recycled 

aluminum are even more attractive in light of the fact that a 

large part of the raw materials currently used for virgin aluminum production in the United States is imported. Because the 

value of recycling is universally recognized, the market for recycled aluminum is robust. In this competitive market, recyclers 

take an active role in attracting aluminum for recycling, thus 

minimizing the amount of aluminum disposed into the solid 

waste stream (Aluminum Association Inc., 1998, p. 4).

Aluminum recovered from scrap has shown a fifteenfold 

increase since 1950. In addition to improvements in recycling 

technologies, some of the increase in aluminum scrap recovery 

can be attributed to a changing and growing end-use consumption pattern. Aluminum products developed for the construction, transportation, and electrical industries tend to have a 

fairly long life cycle and are slow to enter the scrap supply 

stream. The emergence of the aluminum beverage can in the 

mid-1960s with a life cycle of as little as 60 days added dramatically to the potential aluminum scrap supply.

Initially, the public treated aluminum cans as a discardable product. It was not until the early 1970s that can recycling began to accelerate as the public and the industry recognized the economic and ecological advantages of recycling. 

In the 1980s, Materials Recovery Facilities (MRFs) gave new 

prominence to the job of collecting, sorting, and processing waste materials. Millions of households participate in 

curbside recycling programs, which provide the materials for 

MRFs, and chief among the recovered materials are aluminum 

cans. Although aluminum cans may be small in comparative 

tonnage to other materials in the waste stream, it is their monetary value that is often essential to the economic survival of 

these facilities. During the past 20 years, industry recycling 

centers and MRFs have facilitated the collection of aluminum 

UBCs. 

In 2000, the U.S. Geological Survey (USGS) estimated 

that almost 3.5 million metric tons (Mt) of metal was recovered from purchased aluminum scrap. Of this total, approximately 40 percent was recovered from old scrap. Of the old 

scrap processed, approximately one-half was recovered from 

aluminum UBCs.

Table 1 is the basis for the data shown in figure 1. Definitions of the terms used in the table are detailed in the Appendix. Statistical data for the various types of old and new scrap 

consumed by the domestic recycling industries are reported to 

the USGS on a monthly and annual basis and are published in 

the USGS Mineral Industry Surveys and Minerals Yearbook 

series. Data on trade were obtained from monthly reports published by the U.S. Census Bureau.

Table 1. Salient statistics for U.S. aluminum scrap in 2000.

[Values in thousand metric tons, metal content, unless otherwise specified]

Old scrap:

Generated1 ............................................................. 4,000

Consumed2 ............................................................ 1,370

Consumption value ............................................... $1.9 billion

Recycling efficiency3 ............................................ 42 percent

Supply4 .................................................................. 4,625

Unrecovered5 ......................................................... 2,660

New scrap consumed6 ............................................... 2,080

New-to-old-scrap ratio7 ............................................. 60:40

Recycling rate8 .......................................................... 36 percent

U.S. net imports of scrap9 ......................................... 50

Value of U.S. net imports of scrap ............................ $96 million

1

Aluminum content of products theoretically becoming obsolete in the 

United States in 2000. It excludes dissipative uses and net U.S. imports of 

finished products containing aluminum in the year of consumption. 

2

Aluminum content of aluminum products that were recycled in 2000.

3

(Old scrap consumed plus old scrap exported) divided by (old scrap generated plus old scrap imports minus old scrap stock increase).

4

Old scrap generated plus old scrap imports.

5

(Old scrap generated plus old scrap imports) minus old scrap stock increase 

minus old scrap consumed minus old scrap exports.

6

Metal content of prompt industrial aluminum scrap (excluding home 

scrap).

7

Ratio of quantities consumed, in percent.

8

This is the fraction of supply that is scrap on an annual basis. It is defined 

as old plus new scrap consumed divided by apparent supply (primary plus 

secondary production (old plus new scrap) plus imports minus exports plus 

adjustment for Government and industry stock changes), in percent.

9

Trade in scrap is assumed to be old scrap.

Old Scrap Generated

Old scrap is a product of obsolescence and becomes available to the secondary industry when durable and nondurable 

consumer products are discarded. To determine the quantity 
ALUMINUM RECYCLING IN THE UNITED STATES IN 2000 W7

of old scrap available to be recycled for a specific period of 

time, estimates of the lifetimes for various aluminum-containing products are combined with historical end-use data to 

determine a theoretical availability of old scrap for a given 

period of time. The end-use data are based on shipment data 

published by Aluminum Association Inc. in their Annual 

Statistical Review and factored into the calculated apparent 

consumption for a specific period. For example, the average 

life of the transportation component of consumption was estimated to be 25 years. Because the aluminum consumed in 

transportation applications was estimated to be 663,000 t in 

1975 (Aluminum Association percentage distribution times 

apparent consumption), which is 25 years prior to the study 

period of 2000, this is the quantity of material that is included 

in the “old scrap generated” figure for the transportation sector 

for 2000. The same type of estimation procedure with varying 

product lifetimes was used for the other end-use categories; 

namely, packaging, building and construction, consumer durables, electrical, machinery and equipment, and other. Although the life cycle for an aluminum beverage can has been 

estimated to be as little as 60 days, a life cycle estimate of 1 

year was used for the packaging component of the calculation. 

This should not introduce much distortion because shipments 

to that sector are relatively stable.

New Scrap

New scrap is aluminum metal that never reached a consumer. Also referred to as “prompt” or “new industrial,” the 

scrap is generated from aluminum wrought and cast products as they are processed by fabricators into consumer or 

industrial products. Home scrap, which is new scrap that is 

recycled within the company that generated the scrap and consequently seldom enters the commercial secondary market, is 

not included in this study. Prompt industrial scrap, however, 

is new scrap from a fabricator that does not choose to or is 

not equipped to recycle the scrap. This scrap then enters the 

secondary market. New scrap may include aluminum solids, 

clippings, stampings, and cuttings; borings and turnings that 

are generated during machining operations; melt residues, 

such as skimmings, drosses, spillings, and sweepings; and obsolete and surplus metal products that do not enter the market 

owing to quality control or other product specifications (Aluminum Association Inc., 1998, p. 4).

Disposition of Aluminum Scrap

Scrap has its greatest value when it is returned directly to 

the same product from which it was manufactured. New scrap, 

such as sheet side trim, turnings, and ingot butts, is essentially 

the same metal quality as the fabricated or semifabricated 

product from which it was generated and hence is higher valued. Class scrap from the can manufacturing process is a good 

example of a well-defined new scrap. The composition of class 

scrap will fall into a very narrow range independent of the initial 

manufacturer. Because the processor must have a good idea of 

the scrap chemistry to effectively blend the material to make 

the final alloy, processors are usually willing to pay for the assurance of a known chemistry. If the chemistry of the scrap is 

less well defined, then the processor cannot predict the exact 

chemistry after melting. In the case of a secondary smelter that 

produces specification ingot, the lack of knowledge can mean 

additional processing time at the end of a melt cycle owing to 

compositional adjustments. This additional processing cost is 

often reflected in a lower valuation of the scrap input. The more 

a scrap processor knows about the scrap chemistry, the more 

effectively the processor can use it (Peterson, 2003).

Old Scrap Recycling Efficiency

Recycling efficiency shows the relation between what is 

theoretically available for recycling and what is and is not recovered. By definition, this relation is the amount of old scrap 

consumed plus old scrap exports divided by the sum of old 

scrap generated plus old scrap imports plus or minus old scrap 

stock changes. Each component used to determine the relation 

is considered in terms of recoverable metal content. The recycling efficiency for old scrap was calculated to be 42 percent for 

2000 (table 1). If aluminum recovery from new scrap is included in the calculation, then the recycling efficiency for aluminum 

increases to 60 percent. Factors that would lead to underestimating old scrap recycling efficiency could be underestimates 

of the amount of scrap consumed or exported and overestimates 

of old scrap supply if the average product lives by market segment were too short. The opposites of these factors could lead 

to an overestimation of recycling efficiency. All scrap imports 

and exports were assumed to be old scrap. Also, no attempt 

has been made to estimate the aluminum consumed in dissipative uses or the aluminum content of finished products that may 

have entered or exited the domestic flow of material through 

international traded goods. An economic model was developed 

by Bruggink (2000) of Alcoa Inc. that can be used to forecast 

aluminum scrap supply by source and to examine the impact of 

changes in old scrap recovery rates on the U.S. supply system.

Infrastructure

The aluminum recycling industry is characterized by companies that fit one of the following profiles: large integrated 

aluminum producers, independent manufacturers of wrought 

products (shaped for end product use), producers of secondary-specification alloy ingot, and toll processors that reclaim 

metal for producers without taking title to the recoverable 

scrap or dross. Industrial aluminum recyclers range from 

single small plants to multiplant operations. Production of 

individual companies can range from 5,000 t/yr to 1 Mt/yr of 

recycled metal.
W8 FLOW STUDIES FOR RECYCLING METAL COMMODITIES IN THE UNITED STATES

An aluminum recycler may perform at least one of the 

following activities:

•	 UBC Processing—Aluminum is recovered from UBCs 

and new scrap generated by the canmaking process. This 

forms a closed-loop scrap source that recycles used cans 

back into new can sheet.

•	 Secondary Specification Aluminum Alloys Production—

Aluminum is recovered from scrap of various sources 

to produce a specific alloy ingot for a customer. The 

end product is commonly called specification aluminum 

alloy and includes 18 different alloys, each of which has 

a specific chemical composition. The specific alloy is 

dependent on the customer’s intended end product, such 

as an automobile part or other consumer product.

•	 Remelt Secondary Ingot (RSI) Production—Aluminum 

scrap is recycled into an intermediate product without a 

specific chemical composition, which can then be sold 

into the market. The customer will then remelt the ingot 

(hence the name) and add alloys to meet the unique 

chemical specifications of the intended end product.

•	 Deoxidation Ingot Production—Aluminum is recovered 

for steel deoxidizer products, which are important in 

the steelmaking process. The end product may take the 

form of various aluminum shapes—shot, cones, stars, or 

pyramid shapes.

•	 Dross Processing—Aluminum is recovered from dross, 

which is a byproduct that forms in furnaces during normal 

melt processing. Dross contains aluminum that ranges 

from 10 to 80 percent entrained with other metal oxide 

impurities formed during the melting process, which 

include chloride, fluoride, and aluminum oxides. In this 

process, the aluminum is recovered from the dross either 

mechanically or by adding salts during the melting process. 

The recovered aluminum may be returned to a customer 

through a tolling relationship as molten metal or RSI.

Excluding fabricating mills with remelt facilities, the U.S. 

secondary aluminum industry comprises approximately 50 

companies or plants that produce foundry ingot and/or scrap 

ingot billet (Aluminum Association Inc., undated a).

Trade

Aluminum scrap is traded in the international marketplace. Price and shipping costs are usually the determining 

factors in choosing whether to sell scrap in the domestic market or the international market. U.S. trade in aluminum scrap 

has grown dramatically during the past 40 years. Most of the 

scrap shipped into the United States comes from Canada. In 

2000, the United States received almost one-half of its scrap 

imports from Canada. Canada has also become the major 

recipient of scrap exports from the United States. In 2000, 

almost 40 percent of the United States exports of aluminum 

scrap were shipped to Canada. 

Processing of Aluminum Scrap

Scrap dealers and brokers play a key role in the efficient 

collection and processing of aluminum scrap. The scrap dealer 

serves as a collection point for scrap aluminum by buying old 

aluminum products and cans from the public. A strength of 

scrap dealers is the built-in collection and transportation systems 

connected to their operations. This includes trailer drop-off or 

roll-off containers to collect scrap at the point of generation. 

This helps ensure a captive source and quality-assured supply. 

Scrap dealers vary in size and in degree of processing sophistication. A scrap dealer may have shredding and compacting machinery for the initial processing of scrap. Smaller dealers and 

yards with little or no processing capabilities tend to sell their 

scrap to larger dealers either directly or through a scrap broker.

Another important source of aluminum scrap is the scrap 

broker who, like the dealer, often trades in several different 

kinds of metal. The broker adds liquidity to the market by acting as a go-between for the dealer and consumer. Brokers can 

also act as an inventory point for just-in-time manufacturing. 

The secondary aluminum recycling industry uses relatively simple processes. Two general types of scrap are available—furnace-ready scrap and scrap requiring some preprocessing. The preprocessing steps that involve crushing and/or 

shredding and drying can be done by either the scrap consumer or the scrap dealer. The shredders and crushers are used for 

size reduction and for iron removal; several sets of magnets 

often are placed at the exit end of the crusher to remove any 

iron-containing scrap that was included in the aluminum scrap. 

The typical dryer resembles a rotary kiln with an afterburner 

and baghouse for pollution control. The dryer’s function is to 

remove contaminants, such as cutting oils, plastic, and other 

organics. The removal of contaminants helps to minimize 

air pollution from the melting furnaces and to minimize the 

amount of oxidation while melting (Viland, 1990).

A number of methods are used to melt aluminum scrap. 

Most have evolved from conventional aluminum melting technologies or are simple adaptations of preexisting technologies. 

The major methods are discussed below (Peterson, 2003).

Reverberatory (Reverb) Dry Hearth 

Melter

This is conventional technology for melting T-bar, RSI, and 

mill scrap. This furnace is basically a refractory-lined box with 

burners. The furnaces can be either stationary or tilting with the 

latter style producing better quality metal. Large pieces of scrap 

placed in the empty furnace hearth melt by direct flame contact 

or through heat transfer by radiation to form a pool of molten 

metal, which is then drawn off for later use. Care must be taken 

when charging lighter gauge materials to place them at the bottom of the solid load so that excessive oxidation does not occur. 

Melt loss for lighter gauge materials with this style of furnace 

can be high. No flux is used with these furnaces.
ALUMINUM RECYCLING IN THE UNITED STATES IN 2000 W9

Side-Bay Hearth Melter

This furnace is an adaptation of the conventional reverb 

furnace. The furnace maintains a significant metal heel at all 

times; a metal heel is metal that remains in the furnace after 

the removal of the major portion of the contents. Scrap is 

charged to an external side bay and is not exposed to the burner environment. The burners inside the hearth supply heat to 

the metal, which is then circulated by a molten metal pump to 

the side bay where melting of the scrap charge can take place. 

Lighter gauge scrap can be melted in this furnace with higher 

recovery because of the lack of flame exposure. The side bay 

is often charged with a chloride salt flux to protect the molten 

metal and to remove the oxide films and particles from the 

scrap. The byproduct from the side bay is called black dross 

and is a mixture of salt components, oxides (films and particles), and metal droplets. Because of the flux usage, the molten metal is generally quite clean and free of oxide impurities.

Stack Melter

The stack melter is another variant of a conventional reverb 

hearth melter. Heavier scrap pieces and ingots are charged into 

a special holding area. The furnace flue gases exit the furnace 

through this holding area and are used to preheat the scrap. 

Scrap moves down to the hearth until it reaches a ledge where 

the scrap finally melts and enters the metal pool. These furnaces have much higher energy efficiency than conventional reverb 

furnaces. Metal quality is reported to be high because oxide 

films usually stay on the hearth ledge. The furnace is restricted 

to heavier scrap and small ingots that fit into its material handling system. Turnings and light gauge scrap cannot be used.

Rotary Furnace

The rotary furnace is the “all-purpose” furnace of the 

aluminum industry. Because of its excellent mixing properties as a result of the barrel rotation, the rotary barrel has good 

thermal efficiency and can handle many different types of materials, which include extremely dirty scrap and drosses. As in 

the case of the side-bay furnace, a chloride flux is used to trap 

and hold the oxide impurities. Although oxides can be generated during the melting process, the flux captures and holds 

them, thus resulting in a relatively clean metal.

Induction Furnace

The induction furnace is the only commercial furnace that 

melts the scrap without the use of a combustion system. The 

induction coils couple with the electrically conductive aluminum and cause the scrap to heat and melt. Without direct 

flame impingement on the aluminum scrap, the metal temperature can stay lower and the oxidation process can be impeded. 

The coupling also induces a strong mixing action on the molten metal. Because of this mixing, oxide films and particles 

that are generated can get pulled into the metal pool.

Outlook

Recycling of aluminum scrap is significant in economic, energy, and aluminum resource savings, as well as in environmental 

protection. The aluminum recycling industry has saved and will 

continue to save billions of dollars in energy and material costs 

compared with primary aluminum production costs. Recycling 

aluminum requires less than 6 percent of the energy to extract 

aluminum metal from bauxite ore and has helped contribute to 

significant amounts of commercial energy savings (U.S. Department of Energy, 2003). Recycling provides a continuous source 

of aluminum, and no matter how many times it is melted and recast, recycling does not change aluminum’s basic properties.

The packaging, transportation, building and construction, 

consumer durables, electrical, and machinery industries anticipate increasing their use of aluminum, which will increase 

the eventual supply of aluminum scrap available for recycling. 

Since its inception, the aluminum beverage can has been the 

most visible and significant source of aluminum scrap. As the 

transportation industry, particularly the automotive industry, 

increases its use of aluminum materials, these products, too, 

will play a significant role in the future availability of aluminum 

scrap. The industry, however, will need to continue to develop 

new technologies to recover and to identify the more complex 

types of scrap that will be found in today’s and future automobiles. Automobiles contain a mixture of recyclable parts in 

close contact. Separation technology will play a large role in 

segregating and preserving the value of each of these parts.

For these reasons, the aluminum recycling industry should 

continue to grow. The increased use of aluminum in the automotive industry with its longer life cycle has delayed the 

return of increasingly large tonnages of automotive aluminum 

scrap to the market. This material, however, will eventually 

become part of the scrap flow stream and thereby increase the 

recycling rate and improve the recycling efficiency as well. 

Aluminum recycling has been around for nearly 100 

years. The continued use of aluminum assures the industry of 

a continuous supply of feed material and a growing market for 

recycled aluminum. 

References Cited

Altenpohl, D.G., 1998, Aluminum—Technology, applications, and 

environment (6th ed.): Warrendale, Pa., The Minerals, Metals, 

and Materials Society, 473 p.

Aluminum Association Inc., 1998, Aluminum recycling casebook: 

Washington, D.C., Aluminum Association Inc., 28 p.

Aluminum Association Inc., 2001, Americans recycle 2 of 3 

aluminum cans: Washington, D.C., Aluminum Association Inc. 

press release, April 19, 4 p.

Aluminum Association Inc., [undated]a, In-depth information/

recycling process: Web site at http://www.aluminum.org/

Content/NavigationMenu/The_Industry/Recycling/In-depth_

information/In-depth_information.htm. (Accessed March 31, 

2004.)
W10 FLOW STUDIES FOR RECYCLING METAL COMMODITIES IN THE UNITED STATES

Aluminum Association Inc., [undated]b, The industry—Overview: 

Web site at http://www.aluminum.org/Content/NavigationMenu/

The_Industry/Overview/Overview.htm. (Accessed November 

21, 2002.)

American Metal Market, 2001a, AMM nonferrous scrap prices: 

American Metal Market, v. 109, no. 1, January 2, p. 15.

American Metal Market, 2001b, AMM secondary ingot indicator: 

American Metal Market, v. 109, no. 1, January 2, p. 15.

Bruggink, P.R., 2000, Aluminum scrap supply and environmental 

impact model, in Stewart, D.L., Jr., Daley, J.C., and Stephens, 

R., eds., International Symposium on Recycling of Metals 

and Engineered Materials, 4th, Pittsburgh, Pa., October 22-25, 

2000, Proceedings: Warrendale, Pa., The Minerals, Metals & 

Materials Society, p. 809-822.

Can Manufacturers Institute, 2001, 2000 annual report and can 

shipments report: Washington, D.C., Can Manufacturers 

Institute, 18 p. 

Container Recycling Report, 2001, Aluminum ingot and UBC prices, 

in cents per pound: Container Recycling Report, v. 12, no. 1, 

January, p. 2.

International Aluminium Institute, [undated]a, Applications—

Transport—Aerospace: Web site at 

http://www.world-aluminium.org/applications/transport/

aerospace.html. (Accessed November 21, 2002.)

International Aluminium Institute, [undated]b, Applications—

Transport—Automotive: Web site at 

http://www.world-aluminium.org/applications/transport/

automotive.html. (Accessed November 21, 2002.)

Metal Bulletin Monthly, 2001, Re-constructing the aluminum sector: 

Metal Bulletin Monthly, no. 368, August, p. 20-23.

Patterson, S.H., and Dyni, J.R., 1973, Aluminum and bauxite, in

Brobst, D.A., and Pratt, W.P., eds., United States mineral 

resources: U.S. Geological Survey Professional Paper 820, 

p. 35-43.

Patterson, S.H., Kurtz, H.F., Olson, J.C., and Neeley, C.L., 1986, 

World bauxite resources: U.S. Geological Survey Professional 

Paper 1076-B, 151 p.

Peterson, R.D., 2003, The secondary metal supplier and metal quality, 

in Crepeau, P.N., ed., Light metals 2003, San Diego, Calif., 

March 2-6, 2003, Proceedings: Warrendale, Pa., The Minerals, 

Metals & Materials Society, p. 1075-1081.

Platts Metals Week, 2001, Platts Metals Weeks annual price averages 

for 2000: Platts Metals Week, v. 72, no. 6, February 5, p. 18.

Plunkert, P.A., 1990, Aluminum recycling in the United States—A 

historical perspective, in van Linden, J.H.L., Stewart, D.L., 

Jr., and Sahai, Y., eds., International Symposium on Recycling 

of Metals and Engineered Materials, 2d, Williamsburg, Va., 

October 28-31, 1990, Proceedings: Warrendale, Pa., The 

Minerals, Metals & Materials Society, p. 61-68.

Plunkert, P.A., 1999, Aluminum, in Plunkert, P.A., and Jones, T.S., 

comps., Metal prices in the United States through 1998: U.S. 

Geological Survey, p. 1-3.

Russell, Alison, 1999, Bauxite & alumina—A guide to nonmetallurgical uses and markets: Surrey, United Kingdom, Metal 

Bulletin plc., 112 p.

U.S. Department of Energy, 2003, U.S. energy requirements for 

aluminum production: Web site at http://www.oit.doe.gov/

aluminum/tools.shtml#Energy. (Accessed July 30, 2004.)

Viland, J.S., 1990, A secondary’s view of recycling, in van Linden, 

J.H.L., Stewart, D.L., Jr., and Sahai, Y., eds., International 

Symposium on Recycling of Metals and Engineered Materials, 

2d, Williamsburg, Va., October 28-31, 1990, Proceedings: 

Warrendale, Pa., The Minerals, Metals & Materials Society,

p. 21-31.
ALUMINUM RECYCLING IN THE UNITED STATES IN 2000 W11

(OSI) plus a decrease in old scrap stocks (OSS) or minus 

an increase in old scrap stocks], measured in weight and 

expressed as a percentage:

old scrap supply. Old scrap generated plus old scrap imported plus a decrease in old scrap stocks or minus an increase 

in old scrap stocks.

old scrap unrecovered. Old scrap supply minus old scrap 

consumed minus old scrap exported.

price. The total value of old scrap consumed was estimated 

by adding the value of used beverage can scrap consumed 

to the value of other old scrap. The value of used beverage can scrap was calculated using the average annual 

transaction price for used aluminum beverage can scrap. 

The value of other old scrap was based on the average 

annual price for old aluminum cast and sheet scrap. The 

total value of net imports of aluminum scrap was derived 

from trade statistics reported by the U.S. Census Bureau 

as follows: total value of aluminum scrap imports minus 

total value of aluminum scrap exports.

recycling. Reclamation of a metal in useable form from scrap 

or waste. This includes recovery as the refined metal or 

as alloys, mixtures, or compounds that are useful. Examples of reclamation are recovery of alloying metals (or 

other base metals) in steel, recovery of antimony in battery lead, recovery of copper in copper sulfate, and even 

the recovery of a metal where it is not desired but can be 

tolerated—such as tin from tinplate scrap that is incorporated in small quantities (and accepted) in some steels 

only because the cost of removing it from tinplate scrap 

is too high and (or) tin stripping plants are too few. In all 

cases, what is consumed is the recoverable metal content 

of scrap.

recycling rate. Fraction of the apparent metal supply that is 

scrap on an annual basis. It is defined as [consumption of 

old scrap (COS) plus consumption of new scrap (CNS)] 

divided by apparent supply (AS); measured in weight and 

expressed as a percentage:

scrap consumption. Scrap added to the production flow of a 

metal or metal product.

Appendix—Definitions

apparent consumption. Primary plus secondary production 

(old scrap) plus imports minus exports plus adjustments 

for Government and industry stock changes.

apparent supply. Apparent consumption plus secondary production (new scrap). 

calcinations. The heating of ores, concentrates, precipitates, 

or residues to decompose carbonates, hydrates, or other 

compounds.

dissipative use. A use in which the metal is dispersed or scattered, such as paints or fertilizer, making it exceptionally 

difficult and costly to recycle or recover the metal.

home scrap. Scrap generated as process scrap and consumed 

in the same plant where it is generated.

new scrap. Scrap produced during the manufacture of metals 

and articles for both intermediate and ultimate consumption, including all defective finished or semifinished articles that must be reworked. Examples of new scrap are 

borings, castings, clippings, drosses, skims, and turnings. 

New scrap includes scrap generated at facilities that consume old scrap. Included as new scrap is prompt industrial scrap—scrap obtained from a facility separate from the 

recycling refiner, smelter, or processor. Excluded from 

new scrap is home scrap that is generated as process scrap 

and used in the same plant.

new-to-old-scrap ratio. New scrap consumption compared 

with old scrap consumption, measured in weight and expressed as a percentage of new plus old scrap consumed 

(for example, 40:60).

old scrap. Scrap including (but not limited to) metal articles 

that have been discarded after serving a useful purpose. 

Typical examples of old scrap are electrical wiring, leadacid batteries, silver from photographic materials, metals from shredded cars and appliances, used aluminum 

beverage cans, spent catalysts, and tool bits. This is also 

referred to as postconsumer scrap and may originate from 

industry or the general public. Expended or obsolete materials used dissipatively, such as paints and fertilizers, are 

not included.

old scrap generated. Metal content of products theoretically 

becoming obsolete in the United States in the year of consideration, excluding dissipative uses.

old scrap recycling efficiency. Amount of old scrap recovered and reused relative to the amount available to be 

recovered and reused. Defined as [consumption of old 

scrap (COS) plus exports of old scrap (OSE)] divided 

by [old scrap generated (OSG) plus imports of old scrap 

COS + OSE

OSG + OSI + decrease in OSS or – increase in OSS

x 100

COS + CNS

AS

 x 100