18



### ALUMINUM 1

(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 publishe d market prices, the value of prim ary metal production was $6 billion. Aluminum consumption was centered in the East Central United States. Tr ansportation 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 2006 e

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, apparent 2 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, yearend 3 45 207 116 209 180 Employment, number 4 61,700 58,000 57,500 58,400 59,000 Net import reliance 5 as a percentage of apparent consumption 39 38 44 45 44

Recycling : In 2006, aluminum recovered from purchased scrap was ab out 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%; Venezuel a, 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, pp lunker@usgs.gov, fax: (703) 648-7757]19



### ALUMINUM

Events, Trends, and Issues : Domestic primary aluminum production decrea sed 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 increa sed slightly, filling some of the supply def icit 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, re ceived more than three-four ths of total U.S. exports. Most of the shipments to China (95%) we re in the form of aluminum scrap.

The price of primary aluminum fluctuated through Septembe r 2006, but was generally hi gher than that of 2005. In January, the average monthly U.S. ma rket 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 t he International Aluminium Institute, decreased through the end of September to about 2.9 million tons from 3. 2 million tons at year end 2005. Inventories of primary aluminum metal held by the LME increased duri ng 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 2006 e 2005 2006 e

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 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

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

Substitutes : Copper can replace aluminum in electrical applicat ions; 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 st eel 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 (Nor th American Industry Classification System— 3313). Source: U.S. Department of Labor, Bureau of

Labor Statistics.

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

U.S. Geological Survey, Mineral Commodity Summaries, January 2007