16



### ALUMINUM 1

(Data in thousand metric tons of metal unless otherwise noted)

Domestic Production and Use : In 2009, 6 companies operated 13 primary aluminum smelters; 4 smelters were closed the entire year, and demolition of 1 smelter that had been idle since 2000 was completed in 2009. Of the operating smelters, three were temporarily idled and parts of four others were temporarily closed in 2009. Based on published market prices, the value of primary metal pr oduction was $2.96 billion. Aluminum consumption was centered in the East Central United States. Transportation accounted for an estimated 33% of domestic consumption; the remainder was used in packaging, 26%; building, 14%; electrical, 8%; machinery, 8%; consumer durables, 7%; and other, 4%.

Salient Statistics—United States : 2005 2006 2007 2008 2009 e

Production: Primary 2,481 2,284 2,554 2,658 1,710 Secondary (from old scrap) 1,080 1,260 1,600 1,340 1,260 Imports for consumption 5,330 5,180 4,490 4,200 4,130 Exports 2,370 2,820 2,840 3,280 2,570 Consumption, apparent 2 5,990 5,980 5,110 3,790 3,610 Price, ingot, average U.S. market (spot), cents per pound 91.0 121.4 125.2 120.5 78.0

Stocks: Aluminum industry, yearend 1,430 1,410 1,400 1,220 920 LME, U.S. warehouses, yearend 3 209 228 463 1,290 2,120 Employment, number 4 58,400 57,300 56,600 53,900 45,000 Net import reliance 5 as a percentage of apparent consumption 41 31 19 E 18

Recycling : In 2009, aluminum recovered from purchased scrap was about 3.0 million tons, of which about 60% came from new (manufacturing) scrap and 40% from old scrap (dis carded aluminum products). Aluminum recovered from old scrap was equivalent to about 35% of apparent consumption.

Import Sources (2005-08) : Canada, 56%; Russia, 17%; Brazil, 4%; Venezuela, 4%; and other, 19%.

Tariff : Item Number Normal Trade Relations

12-31-09 Unwrought (in coils) 7601.10.3000 2.6% ad val. Unwrought (other than aluminum alloys) 7601.10.6000 Free. Waste and scrap 7602.00.0000 Free.

Depletion Allowance : Not applicable. 1

Government Stockpile : None.

Events, Trends, and Issues : During the first half of 2009, several domestic primary aluminum smelters cut back production in response to significant price drops in the se cond half of 2008. Smelter closures took place in Alcoa, TN; Massena, NY; and Ravenswood, WV. Partial temporary shutdo wns took place at smelters in Columbia Falls, MT; Hannibal, OH; Hawesville, KY; and New Madrid, MO. Demolitio n of a smelter in Vancouver, WA, that started in 2008 was completed in 2009. By the beginning of the fourth quar ter of 2009, domestic smelters operated at about 49% of rated or engineered capacity.

Prepared by E. Lee Bray [(703) 648-4979, lbray@usgs.gov, fax: (703) 648-7757]17



### ALUMINUM

The United States again became reliant upon net impor ts as a percentage of apparent consumption in 2009 compared with that of 2008 when the Nation was a net ex porter of aluminum, as domestic primary production and exports decreased significantly. Canada and Russia accounted for almost three-fourths of total imports. U.S. exports decreased by 22% in 2009 compared with the amount exported in 2008. China, Canada, and Mexico, in descending order, received approximately three-fo urths of total United States exports.

The price of primary aluminum generally rose through A ugust 2009 before declining in September. In January, the average monthly U.S. market price for primary ingot quoted by Platts Metals Week was $0.676 per pound; it reached a high of $0.921 per pound in August, but in September, t he average monthly price was $0.883 per pound. Prices on the London Metal Exchange (LME) followed the trend of U.S. market prices. The monthly average LME cash price for August was $0.877 per pound, but in Sept ember the price was $0.832 per pound.

World primary aluminum production declined sharply in the first quarter of the year in response to price declines in the

wake of the financial crises that started in late 2008 and continued in early 2009. World inventories of metal held by producers, as reported by the International Aluminium Institute, decreased through the end of August to about 2.3 million tons from 3.0 million tons at y earend 2008. Inventories of primary alum inum metal held by the LME worldwide increased during the year to 4.6 million tons at the end of September from 2.3 million tons at yearend 2008.

World Smelter Production and Capacity : Production Yearend capacity

2008 2009 e 2008 2009 e

United States 2,658 1,710 3,620 3,500 Australia 1,970 1,970 1,970 1,970

Bahrain 865 870 880 880 Brazil 1,660 1,550 1,700 1,700 Canada 3,120 3,000 3,120 3,090 China 13,200 13,000 15,000 19,000 Germany 550 520 620 620

Iceland 787 790 790 790 India 1,310 1,600 1,800 2,000 Mozambique 536 500 570 570 Norway 1,360 1,200 1,360 1,230 Russia 3,800 3,300 4,400 5,150

South Africa 811 800 900 900 United Arab Emirates, Dubai 910 950 950 950

Venezuela 610 550 625 625

Other countries 4,850 4,600 6,260 6,920 World total (rounded) 39,000 36,900 44,600 49,900

World Resources : Domestic aluminum requirements cannot be me t by domestic bauxite re sources. Domestic

nonbauxitic aluminum resources are abundant and could m eet domestic aluminum demand. However, no processes for using these resources have been proven economically competitive with those now used for bauxite. The world

reserves for bauxite are sufficient to meet world demand for metal well into the future.

Substitutes : Composites can substitute for aluminum in aircraft fuselages and wings. Glass, paper, plastics, and steel can substitute for aluminum in packaging. Magnesium, titanium, and steel can substitute for aluminum in ground transportation and structural uses. Composites, steel, vinyl, and wood can substitute for aluminum in construction. Copper can replace aluminum in electrical applications.

e Estimated. E Net exporter.

1 See also Bauxite and Alumina.

2 Domestic primary metal production + recovery from old al uminum scrap + net import reliance; excludes imported scrap.

3 Includes aluminum alloy.

4 Alumina and aluminum production wo rkers (North American Industry Classification Syst em—3313). Source: U.S. Department of Labor, Bureau of

Labor Statistics.

5 Defined as imports – exports + adjustments for Government and industry stock changes.

U.S. Geological Survey, Mineral Commodity Summaries, January 2010