16



### ALUMINUM 1

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

Domestic Production and Use : In 2011, 5 companies operated 10 primary aluminum smelters; 5 smelters were

closed the entire year. One smelter that was closed in 2009 was reopened during the first quarter of 2011. Five

potlines that were closed in late 2008 and early 2009 at four o ther smelters were also restarted in early 2011. Based

on published market prices, the value of primary metal production was $5.27 billion. Aluminum consumption was

centered in the East Central United States. Transportation accounted for an estimated 34% o f domestic consumption;

the remainder was used in packaging, 27%; building, 12%; electrical, 8%; machinery, 8%; consumer durables, 7%;

and other, 4%.

Salient Statistics

— United States : 2007 2008 2009 2010 2011 e

Production:

Primary 2,554 2,658 1,727 1,726 1,990

Secondary (from old scrap) 1,660 1,500 1,260 1,250 1,400

Imports for consumption 4,020 3,710 3,680 3,610 3,670

Exports 2,840 3,280 2,710 3,040 3,350

Consumption, apparent 2 5,170 3,940 3,320 3,460 3,900

Price, ingot, average U.S. market (spot),

ce nts per pound 125.2 120.5 79.4 104.4 120.0

Stocks:

Aluminum industry, yearend 1,400 1,220 937 1,010 900

LME, U.S. warehouses, yearend 3 463 1,290 2,200 2,230 2,150

Employment, number 4 39,600 38,000 33,800 29,200 30,000

Net import reliance 5 as a percenta ge of

apparent consumption 18 E 10 14 13

Recycling : In 2011, aluminum recovered from purchased scrap in the United States was about 3.0 million tons, of

which about 54% came from new (manufacturing) scrap and 46% from old scrap (discarded aluminum produc ts).

Aluminum recovered from old scrap was equivalent to about 36% of apparent consumption.

Import Sources (2007

– 10) : Canada, 62%; Russia, 8%; China, 5%; Mexico, 3%; and other, 22%.

Tariff : Item Number Normal Trade Relations

12

- 31

- 11

Unwrought (in co ils) 7601.10.3000 2.6% ad val.

Unwrought (other than aluminum alloys) 7601.10.6000 Free.

Unwrought (billet) 7601.20.9045 Free.

Waste and scrap 7602.00.0000 Free.

Depletion Allowance : Not applicable. 1

Government Stockpile : None.

Events, Trends, and Issue s : During the first half of 2011, production from d omestic primary aluminum smelters

increased after cutbacks were made during 2008 and 2009 in response to price drops in the second half of 2008.

Production resumed at a smelter in Massena, NY; potlines wer e also restarted at smelters in Ferndale, WA; Hannibal,

OH; Hawesville, KY; and Wenatchee, WA. Work on an expansion project continued at a smelter in New Madrid, MO,

that would increase capacity to 266,000 tons of aluminum per year from 250,000 tons per ye ar by yearend 2013. By

the beginning of the fourth quarter of 2011, domestic smelters operated at about 64% of rated or engineered capacity.

Prepared by E. Lee Bray [(703) 648

- 4979, lbray@usgs.gov ]17



### ALUMINUM

The United States continued to be slightly reliant upon imports in 2011, as domestic primary production increased

from that in 2010 but still remained at significantly lower levels than in 2008, although exports of scrap continued to

increase. Canada, Russia, and the United Arab Emirates a ccounted for about 71% of total U.S. imports. Total

aluminum exports from the United States increased by 10% in 2011 compared with the amount exported in 2010, and

total imports of aluminum in 2011 were slightly higher than the amount imported in 2010. Chi na, Canada, and Mexico,

in descending order, received approximately 79% of total United States exports. Scrap exports to China accounted for

40% of total aluminum exports.

The monthly average U.S. market price for primary ingot quoted by Platts Metals Wee k started the year at $1.163 per

pound and reached a peak of $1.283 per pound in April. The monthly average price began a downward trend,

reaching $1.166 in August. Prices on the London Metal Exchange (LME) followed the trend of U.S. market prices.

World primary aluminum production increased in 2011 compared with production in 2010, mainly as a result of

starting new smelters and restarting domestic smelters that had been shut down in 2008 and early in 2009. New

smelters were constructed and came onstream , mainly in China and India. New smelters previously completed

reached full production during 2011 in Qatar and the United Arab Emirates. World inventories of metal held by

producers, as reported by the International Aluminium Institute, increased through the end of July to about 2.6 million

tons from 2.5 million tons at yearend 2010. Inventories of primary aluminum metal held by the LME worldwide

increased during the year to 4.6 million tons in mid

- September from 4.3 million tons at yearend 2010.

World Sm elter Production and Capacity :

Production Yearend capacity

2010 2011 e 2010 2011 e

United States 1,726 1,990 3,200 3,200

Australia 1,930 1,930 2,050 2,050

Bahrain 870 870 880 880

Brazil 1,540 1,410 1,700 1,700

Canada 2,960 2,970 3,020 3,020

China 16,200 18,000 23,000 25,000

Germany 394 450 620 620

Iceland 780 790 790 790

India 1,450 1,700 1,950 2,310

Mozambique 557 560 570 570

Norway 800 800 1,230 1,230

Qatar 190 390 585 585

Russia 3,950 4,000 4,440 4,440

South Africa 807 800 900 900

United Arab Emirates 1,400 1,800 1,800 1,800

Venezuela 335 380 590 590

Other countries 4,900 5,230 6,180 6,190

World total (rounded) 40,800 44,100 53,500 55,900

World Resources : Domestic aluminum requirements cannot be met by domestic bauxite resources. Domestic

non bauxitic aluminum resources are abundant and could meet 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 me et 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 aluminum scrap + net import reliance; excludes imported scrap.

3 Includes aluminum alloy.

4 Alumina and aluminum production workers (North American Industry Classification System

— 3313). Source: U.S. Dep artment 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 2012