18 

ALUMINUM1

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

Domestic Production and Use: In 2006, 5 companies operated 13 primary aluminum smelters; 6 smelters were 

temporarily idled. Based upon published market prices, the value of primary metal production was $6 billion. 

Aluminum consumption was centered in the East Central United States. Transportation accounted for an estimated 

40% of domestic consumption; the remainder was used in packaging, 28%; building, 13%; consumer durables, 7%; 

electrical, 5%; and other, 7%. 

Salient Statistics—United States: 2002 2003 2004 2005 2006e

Production: 

 Primary 2,707 2,703 2,516 2,481 2,300 

 Secondary (from old scrap) 1,170 1,070 1,160 1,060 1,100 

Imports for consumption 4,060 4,130 4,720 5,330 5,400 

Exports 1,590 1,540 1,820 2,370 2,800 

Consumption, apparent2

 6,320 6,130 6,590 6,460 6,100 

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

 cents per pound 64.9 68.1 84.0 91.0 120.0 

Stocks: 

 Aluminum industry, yearend 1,320 1,400 1,470 1,430 1,400 

 LME, U.S. warehouses, yearend3

 45 207 116 209 180 

Employment, number4

 61,700 58,000 57,500 58,400 59,000 

Net import reliance5

 as a percentage of 

 apparent consumption 39 38 44 45 44 

Recycling: In 2006, aluminum recovered from purchased scrap was about 3 million tons, of which about 64% came 

from new (manufacturing) scrap and 36% from old scrap (discarded aluminum products). Aluminum recovered from 

old scrap was equivalent to about 18% of apparent consumption. 

Import Sources (2002-05): Canada, 55%; Russia, 18%; Venezuela, 4%; Brazil, 4%; and other, 19%. 

Tariff: Item Number Normal Trade Relations

 12-31-06

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. 

Prepared by Patricia A. Plunkert [(703) 648-4979, pplunker@usgs.gov, fax: (703) 648-7757] 
 19 

ALUMINUM 

Events, Trends, and Issues: Domestic primary aluminum production decreased slightly owing to cutbacks attributed 

to increased energy and alumina costs. Domestic smelters operated at about 62% of rated or engineered capacity. 

Imports for consumption increased slightly, filling some of the supply deficit created by the decrease in domestic 

production. Canada and Russia accounted for approximately two-thirds of total imports. U.S. exports also increased 

in 2006. China, Canada, and Mexico, in descending order, received more than three-fourths of total U.S. exports. 

Most of the shipments to China (95%) were in the form of aluminum scrap. 

The price of primary aluminum fluctuated through September 2006, but was generally higher than that of 2005. In 

January, the average monthly U.S. market price for primary ingot quoted by Platts Metals Week was $1.118 per 

pound; it reached a high of $1.355 per pound in May; and in September, the price was $1.170 per pound. Prices on 

the London Metal Exchange (LME) followed the trend of U.S. market prices. The monthly average LME cash price for 

September was $1.121 per pound. 

World primary aluminum production continued to increase as capacity expansions outside the United States were 

brought onstream. Inventories of metal held by producers, as reported by the International Aluminium Institute, 

decreased through the end of September to about 2.9 million tons from 3.2 million tons at yearend 2005. Inventories 

of primary aluminum metal held by the LME increased during the year to 691,000 tons at the end of September from 

644,000 tons at yearend 2005. 

World Smelter Production and Capacity:

 Production Yearend capacity

 2005 2006e 2005 2006e

United States 2,481 2,300 3,700 3,700 

Australia 1,900 1,900 1,900 1,950 

Bahrain 751 830 750 850 

Brazil 1,500 1,600 1,500 1,600 

Canada 2,890 3,000 2,900 3,060 

China 7,800 8,700 10,000 10,500 

Germany 668 530 670 670 

India 898 1,000 950 1,150 

Mozambique 555 560 560 570 

Norway 1,370 1,360 1,390 1,360 

Russia 3,650 3,720 3,700 3,800 

South Africa 851 890 860 900 

United Arab Emirates, Dubai 750 770 750 770 

Venezuela 610 615 650 650 

Other countries 5,190 5,340 5,800 5,900

 World total (rounded) 31,900 33,100 36,100 37,400 

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

nonbauxitic 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 

reserve base for bauxite is sufficient to meet world demand for metal well into the future. 

Substitutes: Copper can replace aluminum in electrical applications; magnesium, titanium, and steel can substitute 

for aluminum in structural and ground transportation uses. Composites, steel, and wood can substitute for aluminum 

in construction. Glass, paper, plastics, and steel can substitute for aluminum in packaging. 

e

Estimated. 

1

See also Bauxite and Alumina. 

2

Domestic primary metal production + recovery from old aluminum scrap + net import reliance. 3

Includes aluminum alloy. 

4

Alumina and aluminum production workers (North American Industry Classification System—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 2007