ALUMINUM—1998 5.1



# ALUMINUM

By Patricia A. Plunkert

Domestic survey data and tables were prepared by Micheal George, statistical assistant, and the world production table was prepared by Regina R. Coleman, international data coordinator.

In 1998, 13 domestic companies operated 23 primary aluminum reduction plants, producing more than 3.7 million metric tons of metal. Montana, Oregon, and Washington accounted for 39% of the production; Maryland, New York, Ohio, and West Virginia, 22%; and other States, 39%. The value was estimated to be $5.4 billion. Aluminum recovered from purchased scrap decreased to approximately 3.4 million tons. Of this recovered metal, 57% came from new (manufacturing) scrap, and 43%, from old (discarded aluminum products) scrap. Aluminum used beverage can (UBC) scrap accounted for more than one-half of the reported old scrap consumption in 1998. The recycling rate for aluminum UBC’s decreased to 62.8%. Transportation and the container and packaging industries remained the largest domestic markets for aluminum products in 1998. The transportation industry accounted for an estimated 35% of domestic consumption; containers and packaging, 24%; building and construction, 15%; electrical and consumer durables, 8% each; and other uses, 10%. U.S. imports for consumption increased significantly in 1998. Canada remained the largest shipper of aluminum materials to the United States. Shipments of crude metal and alloys from Russia, the second largest source of U.S. imports, increased dramatically and returned to a level of imports that had not been seen since 1994. Total exports from the United States also increased in 1998. The price of primary ingot on the domestic and the international markets decreased during the year. The annual average price of primary ingot was significantly lower than that of 1997. Prices in the aluminum scrap markets paralleled the general trend of primary ingot prices during the year. At the end of 1998, world inventories increased slightly compared with those at the end of 1997. Inventories held by the London Metal Exchange (LME) increased by about 14,000 tons; world producer total metal stocks, as reported by the International Primary Aluminium Institute (IPAI), remained essentially unchanged. U.S. inventories also increased during the year. Primary aluminum was produced in 45 countries in 1998. The United States was the largest producer with 17% of the world total, followed by Russia with 14% and Canada with 11%. World primary metal production increased by 3% compared with that of 1997.

Legislation and Government Programs

The Defense Logistics Agency (DLA) completed the sale of aluminum metal from the National Defense Stockpile (NDS). On April 24, the sale of 323 tons (356 short tons) exhausted the inventory of aluminum metal held by the NDS and completed the 2-year sales program of 57,000 tons (62,900 short tons) of aluminum metal (Defense Logistics Agency, 1998).

Production

Primary.—Domestic primary aluminum production, totaling 3,712,690 tons, increased by 3% compared with that in 1997 (table 1). Production data were obtained from the 13 domestic producers, all of whom responded to the request from the U.S. Geological Survey (USGS) for data. Although there were significant changes in the ownership or operating status of several domestic smelters, the overall production capacity remained essentially unchanged (table 2). In July, the Aluminum Company of America (Alcoa) announced that the stockholders of Alumax Inc. voted to approve Alumax’s merger with Alcoa. As a result of the merger, each outstanding Alumax share was converted into 0.6975 of a share of Alcoa common stock (Aluminum Company of America, 1998). The U.S. Department of Justice cleared the merger of the two companies after Alcoa agreed to sell its cast plate operations to a firm that would continue to manufacture and sell cast plate (U.S. Department of Justice, 1998). In December, Alcoa and Century Aluminum Co. announced that Century had agreed to buy Alcoa’s cast aluminum plate plant in Vernon, CA. The business will be named Century Cast Plate (Platt’s Metals Week, 1998g). Alcoa also announced that its board of directors approved a change of the corporate name from Aluminum Company of America to Alcoa Inc. effective January 1, 1999 (Aluminum Company of America, 1999, p. 7). NSA, a division of Southwire Company, reported that construction had begun on a new 50,000-ton-per-year potline at its Hawesville, KY, smelter. The $125-million expansion, scheduled for completion in 1999, would increase capacity at the plant to about 240,000 tons per year (Metal Bulletin, 1998k). Alcan Aluminium Ltd. began a feasibility study on the possible addition of a 60,000-ton-per-year potline at its 186,000-ton-per-year smelter in Sebree, KY. A decision on whether or not to proceed with the estimated $200 million project was expected in 1999 (Platt’s Metals Week, 1998b).Reynolds Metals Co. announced the restart of a 41,000-tonper-year potline at its smelter in Massena, NY, which had been idled since 1993. The restart brings the plant back to its full operating capacity of 123,000 tons per year. The restart of 47,000 tons per year of capacity at Reynolds’ smelter in Longview, WA, earlier in the year also brought that smelter back to its full operating capacity of 204,000 tons per year. Reynolds reported that 74,000 tons per year of capacity was restarted at its 121,000-ton-per-year smelter in Troutdale, OR.ALUMINUM—1998

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## The Troutdale smelter had been idled since 1991 (Reynolds Metals Co., 1999, p. 6). Norsk Hydro AS announced a 5-year extension of its tolling agreement with Goldendale Aluminum Co. through 2011. In addition, Norsk Hydro will lend Goldendale part of the money needed for a 50,000-ton expansion of the smelter casthouse and the installation of point-feeder technology in the smelter. The point-feeder technology, developed by Norsk Hydro and used at its Karmoy, Norway, smelter, was expected to increase capacity by 15% at the 168,000-ton-per-year Goldendale, WA, smelter (Platt’s Metals Week, 1998h). On September 30, Kaiser Aluminum & Chemical Corp. temporarily idled 3 of the 11 potlines at its Mead and Tacoma, WA, aluminum smelters. The curtailed potlines represented approximately 70,000 tons of annual production capacity out of a total combined capacity of 273,000 tons per year. By the end of the year, however, Kaiser announced that the two potlines at its 200,000-ton-per-year Mead smelter, representing 50,000 tons of the idled capacity, would be restarted by the end of February 1999. Preparations to restart the remaining 20,000- ton-per-year potline at the Tacoma smelter had begun, but the timing for any restart had yet to be determined (Kaiser Aluminum & Chemical Corp., 1999, p. 2). In November, Alcoa announced a 30,000-ton-per-year production cutback at its Eastalco 174,000-ton-per-year primary aluminum smelter in Frederick, MD. Eastalco was a joint venture between Alcoa (61%) and a Japanese consortium led by Mitsui & Co. Ltd. (39%). The cutback will not affect the Mitsui partners’ share of metal production (Platt’s Metals Week, 1998c). A labor dispute between Kaiser and workers represented by the United Steelworkers of America (USW) continued through the end of the year. Substantially all the hourly workforces at the Gramercy, LA, alumina refinery, the Mead and Tacoma, WA, aluminum smelters, the Trentwood, WA, rolling mill, and the Newark, OH, extrusion facility were covered by a labor agreement that expired on September 30 (Kaiser Aluminum & Chemical Corp., 1999, p. 2). Ormet Primary Aluminum Corp. entered into a 6-year agreement with Entergy Power Marketing Corp. (EPMC) of Houston, TX, a wholesale power marketing and trading subsidiary of Entergy Corp., to manage Ormet’s power requirements beginning on January 1, 2000. Through its new partnership with EPMC, Ormet will have not only the flexibility to change its power supply to optimize production operations, but also the ability to control its own power costs. The EPMC agreement replaced Ormet’s contract with CNG Energy Services (Ormet Primary Aluminum Corp., 1998). Reynolds completed the sale of its McCook, IL, sheet and plate plant to McCook Metals LLC, a company formed by Michigan Avenue Partners Inc. The plant produced aluminum products for the aircraft, aerospace, and transportation markets (Reynolds Metals Co., 1998e). Reynolds announced that it had signed a definitive agreement to sell its Alloys can stock complex in Muscle Shoals, AL, to Wise Alloys LLC. Wise Alloys was formed by Wise Metals Co., Inc. and Avalon-Borden Companies Inc. Assets included in the sale were the Alloys rolling mill, two nearby reclamation plants that provide metal to the mill, and the Sheffield coil coating facility (Reynolds Metals Co., 1998g). Norandal USA Inc., the U.S. subsidiary of Noranda Aluminum Inc., announced that construction had begun on a new $240 million, high-speed aluminum foil plant in Huntingdon, TN. The new plant, to be phased in over 5 years, was expected to have an annual capacity of close to 91,000 tons(200 million pounds) of heavy-gauge aluminum foil. Heavygauge foil is used for heat exchangers, radiators, and semirigid food containers (Norandal USA Inc., 1998). Norandal and Michigan Avenue Partners signed a letter of intent for the sale of Norandal’s rolling mill in Scottsboro, AL. The mill produced about 160,000 to 180,000 tons (350 million–400 million pounds) per year of hot- and cold-rolled sheet (Metal Bulletin, 1998h).Quanex Corp. purchased Decatur Aluminum Corp., a coldrolled aluminum sheet manufacturer in Decatur, AL. The company was renamed Nichols Aluminum Alabama and became part of Quanex’s Nichols Aluminum Division, which includes an aluminum minimill in Davenport, IA, and rolling mills in Davenport and Lincolnshire, IL (Hassler, 1998). Southwire announced that its third Southwire Continuous Rod (SCR®) aluminum rod mill was on schedule to be completed by yearend 1998. The new rod mill was expected to increase the Hawesville, KY, plant’s capacity by about 20% and will permit Southwire to work with different aluminum alloys while dedicating the other two SCR lines to high-volume electrical conductor production. Rod from the new mill will be used for mechanical applications, such as weld wire, cold head wire for nails, rivets, and other products (Southwire Company, 1998). U.S. aluminum extruder Easco Inc. announced that the casting expansion at its Ahoskie, NC, billet plant had been completed during the third quarter of 1998. Annual production capacity increased to about 95,000 tons (210 million pounds), making Easco essentially self-sufficient with respect to its billet requirements. The casting plant used primary aluminum ingot, purchased aluminum scrap, and scrap recycled from the company’s extrusion plants to produce billet (Easco Inc., 1999, p. 7). Secondary.—Metal recovered from new and old scrap decreased to 3.4 million tons in 1998 (table 3), according to data derived by the USGS from its “Aluminum Scrap” survey. Of the 87 companies and/or plants to which monthly or annual survey requests were sent, 59 responded, representing 90% of the total scrap consumed as listed in table 4. According to figures released by the Aluminum Association Inc., the Can Manufacturers Institute, and the Institute of Scrap Recycling Industries, 64 billion aluminum UBC’s were recycled in the United States in 1998. The recycling rate, based on the number of cans shipped during the year, was 62.8%, a modest decrease from the 66.5% recycling rate reported in 1997, although 1998 was the tenth consecutive year that the aluminum can recycling rate was greater than 60%. According to the organizations’ joint press release, aluminum beverage cans produced domestically in 1998 had an average 51.4% postconsumer recycled content, the highest recycled content percentage of all packaging materials (Aluminum Association Inc., 1999). In March, Reynolds completed the sale of its U.S. recyclingALUMINUM—1998 5.3 

## operations to Wise Recycling LLC, an affiliate of Wise Metals Co., Inc., and TOMRA Pacific, Inc., an affiliate of TOMRA Systems ASA. TOMRA Pacific acquired Reynolds recycling operations in California and 4 other Western States, and Wise Recycling acquired the remaining 23-State recycling operations (Reynolds Metals Co., 1998f). In June, TOMRA Systems signed a letter of intent to acquire a 50% interest in Wise Recycling LLC. The companies noted that the alliance would enable them to combine Wise’s marketing expertise with TOMRA’s knowledge of collection systems and technology (TOMRA Systems ASA, 1998). IMCO Recycling Inc. announced that it had signed a letter of intent to purchase Alcan’s aluminum alloys plant in Shelbyville, TN. The facility has the capacity to produce about 54,000 tons (120 million pounds) per year of specification aluminum alloys (IMCO Recycling Inc., 1998). Government antitrust authorities in Canada and the United States have cleared the way for Wabash Alloys LLC to purchase three secondary aluminum plants from Philip Services Inc. The three plants involved in the $70 million deal are the secondary alloy operation in Guelph, Ontario, the aluminum deoxidizing plant in Bellwood, VA, and the former Roth Brothers secondary alloy plant in Syracuse, NY (Metal Bulletin, 1998m). OmniSource Corp.’s subsidiary, Superior Aluminum Alloys, announced the startup of its new secondary aluminum smelter. The New Haven, IN, plant had a production capacity of 68,000 to 82,000 tons (150 million–180 million pounds) per year and will produce a full range of casting alloys (Metal Bulletin, 1998l). Tobian Metals Inc., a processor of aluminum drosses, began operations at a plant in Benton Harbor, MI, previously occupied by the Alreco Metals Inc. secondary aluminum smelter. Tobian reported that it had state-of-the-art, double-pass rotary furnaces and was capable of processing a wide range of aluminum alloy scrap (Worden, 1998). Secondary aluminum producer Assorted Alloys of Tennessee, formerly Secondary Aluminum Smelters, was closed permanently. The company reported that all the plant equipment was sold at auction (American Metal Market, 1998).

Consumption

In 1998, the transportation industry, accounting for more than 3.2 million tons of total U.S. shipments of aluminum products, remained the largest domestic consumer of aluminum (table 6). The container and packaging industry consumed approximately 2.3 million tons of aluminum. Total shipments of aluminum products to domestic users increased by approximately 4% in 1998 compared with those of 1997. Boeing Commercial Airplane Group announced the selection of five companies to supply all its aluminum flat-rolled products and small and intermediate extrusions for the next 10 years. Under the new procurement strategy, Boeing will buy aluminum directly from the companies and then provide it to external suppliers and internal parts shops through a single distributor, TMX, a subsidiary of Thyssen Inc., N.A. The five suppliers will be Alcoa (flat-rolled products and extrusions); Century Aluminum, Kaiser, and Hoogovens Aluminium Walzprodukte GmbH (flat-rolled products only); and Universal Alloys Co. (extrusions only) (Boeing Company, 1998). Alcan announced the signing of a 10-year aluminum supply agreement with General Motors Corporation (GM). According to the companies, the multibillion dollar agreement will ensure the supply of metal from Alcan at competitive cost to meet GM’s projected needs into the next decade. GM and Alcan will also partner in a number of joint activities, including research, design, and technology. The companies will also explore newand expanding uses for aluminum, including aluminumintensive vehicles (Alcan Aluminium Ltd., 1998a). Ducker Research Company Inc. released a report evaluating the use of aluminum in domestic automobiles (Wrigley, 1998). According to the report, the net use of aluminum by the automotive industry in 1999 will amount to more than 3.8 billion pounds on the basis of the production of approximately 15.4 million cars and light-duty trucks. Secondary aluminum (aluminum recovered from scrap) will represent about 63% of that quantity. The Ducker report also stated that light trucks, including pickups, sports utility vehicles, and vans, will contain an average of 256 pounds of aluminum per vehicle, compared to 241 pounds in passenger cars. Since 1977, aluminum content has increased by 150 pounds per vehicle, or 4.3% per
year. Reynolds announced the sale of its North American beverage can and can end assets to Ball Corporation. The $746 million sale included 14 can and 2 end plants (Reynolds Metals Co., 1998b, c). In December, Ball announced plans to close the Hayward and the Rocklin, CA, plants during the first quarter of 1999. Also included in the announcement were the closures of a beverage can plant and a food can plant in China (Platt’s Metals Week, 1998f). On December 31, the 500-pound aluminum ball traditionally used atop the One Times Square Building in New York City to mark the passage of one year and the start of another ushered in the New Year for the last time. The aluminum ball will be replaced with imported Waterford crystal for next year’s millennium celebration (Regan, 1998b).

Stocks

Inventories of aluminum ingot, mill products, and scrap held by producers increased to 1.93 million tons at yearend 1998 from a revised 1.86 million tons at yearend 1997. The U.S. Department of Commerce announced that its Aluminum Ingot and Mill Products (M33-D) publication, the source of U.S. inventory data for 1997 and prior years, will be discontinued at the end of 1998. Similar data in the future will be published by the Aluminum Association. To help facilitate a smooth transition from one series to the other, the 1998 end-of-year inventory was taken from the Aluminum Association’s U.S. Aluminum Industry Net Shipments and Inventories publication. The LME reported that its U.S. warehouses held approximately 11,300 tons of primary aluminum metal ingot at yearend 1998, a dramatic increase from the 325 tons of metal held in these warehouses at yearend 1997. It also reported that aluminum alloy ingot at its U.S. warehouses at yearend 1998 totaled 1,500 tons, a significant decrease from the 7,260 tons held at yearend 1997.ALUMINUM—1998

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## On April 24, the DLA announced the sale of 323 tons (356 short tons) of aluminum metal from the NDS. This exhausted the NDS aluminum inventory, and there will be no further offerings (Defense Logistics Agency, 1998).

Prices

The monthly average U.S. market price of primary aluminum metal, as reported by Platt’s Metals Week, trended downward during the year. The monthly average price began the year at 71.9 cents per pound. By December, the monthly average had fallen to 60.1 cents per pound, a decrease of almost 12 cents per pound for the year. The average price for the year was 65.5 cents per pound, a dramatic decrease compared with the 1997 average annual price of 77.1 cents per pound (table 1). The LME cash price for high-grade primary aluminum ingot followed the same general trend as the U.S. market price. The 1998 average annual LME cash price was 61.6 cents per pound. Purchase prices for aluminum scrap, as quoted by American Metal Market, followed the general trend of primary ingot prices, and scrap prices closed the year at significantly 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, 43 to 44 cents per pound; old sheet and cast, 37 to 39 cents per pound; and clean, dry aluminum turnings, 35 to 37 cents per pound. Aluminum producers’ buying price range for processed and delivered UBC’s, as quoted by American Metal Market, also trended downward during the year. The price range began the year at 55 to 56 cents per pound and closed the year at 44 to 45 cents per pound. Resource Recycling published a monthly transaction price for aluminum UBC’s in its Container Recycling Report. The average annual UBC transaction price for 1998 was 50 cents per pound, a significant decrease from the 1997 annual average of 60.3 cents per pound. The yearend indicator prices for selected secondary aluminum ingots, as published in American Metal Market, also decreased significantly, averaging more than 16 cents per pound lower than those of 1997. The closing prices for 1998 were as follows: alloy 380 (1% zinc content), 65.05 cents per pound; alloy 360 (0.6% copper content), 70.06 cents per pound; alloy 413 (0.6% copper content), 69.94 cents per pound; and alloy 319, 67.69 cents per pound. Platt’s Metals Week published an annual average U.S. price of 63.56 cents per pound for A-380 alloy (3% zinc content). The average annual LME cash price for a similar 380 alloy was 54.6 cents per pound.

Foreign Trade

Total exports of aluminum from the United States increased slightly in 1998 compared with those of 1997 (table 8). Although exports of crude metals and alloys decreased, semifabricated materials and scrap exports increased compared with those of 1997 (table 9). Canada, Mexico, and Japan, in decreasing order of shipments, accounted for almost 70% of total U.S. exports. Imports for consumption increased significantly in 1998 compared with those of the previous year (table 10). Canada remained the major source country, supplying almost 60% of total imports (table 11). Russia remained the second largest supplier of aluminum materials. Imports of crude metal and alloys from Russia increased dramatically (43%) in 1998 and returned to a level of imports that had not been seen since 1994.

World Review

World production of primary aluminum metal increased by 3% in 1998 compared with that of 1997 (table 12). Aluminum demand continued to be strong in the United States, and demand in Europe, although tempered by the Asian economic crisis, remained relatively strong. The Asian aluminum markets, however, reflected the economic and financial crises in that area. Unwrought primary aluminum inventories held by members of the IPAI increased slightly to 1.69 million tons at yearend 1998 from 1.64 million tons at yearend 1997. IPAI total metal inventories, including secondary aluminum, at yearend 1998, remained essentially unchanged from those at yearend 1997 at 3.16 million tons. Inventories of primary aluminum metal held by the LME also increased slightly to 636,000 tons at the end of 1998 from 622,000 tons at yearend 1997. Aluminum alloy inventory held by the LME, however, more than doubled compared with that of the previous year. Alloy inventory at yearend 1998 was 96,000 tons compared with 42,600 tons at yearend 1997. Australia.—Aluminium Smelters of Victoria (Aluvic) sold its 25% interest in the Portland aluminum smelter to Japan’s Marubeni Corp. and China’s state-owned China International Trust & Investment Corp. (CITIC), increasing their shares ofthe plant. After the sale, the joint owners of the 350,000-tonper-year smelter were Alcoa (45%), Marubeni and CITIC (both 22.5%), and Eastern Aluminium Ltd. (10%) (Metal Bulletin, 1998d). Bahrain.—Aluminium Bahrain (Alba) signed a $400 million loan to finance a series of projects designed to improve operations at its primary aluminum smelter. The funds will be used to construct a new 450,000-ton-per-year coke calcining plant by 2000, a 41,000-cubic meter-per-day water desalination plant, and an upgrade to the smelter’s port facilities. Alba’s calcined coke requirement for carbon anodes was approximately 250,000 tons per year; therefore, 200,000 tons would be available for export (Mining Journal, 1998). Brazil.—Companhia Vale do Rio Doce announced plans to expand capacity at its 345,000-ton-per-year Albras smelter by adding additional pots to the three newest of its existing potlines. Upon completion in mid-2000, the $72 million project was expected to increase annual capacity at the smelter to 382,000 tons (Kepp, 1998b). Valesul Aluminio SA studied plans to increase capacity at its 93,000-ton-per-year primary aluminum smelter. The $400 million project would increase annual capacity at the smelter in two stages—one to increase capacity to 135,000 tons per year and another to increase production to 229,000 tons per year. The company stated that a decision on the 5-year expansion plan would not be made until it was sure that it had sufficient energy for the project (Kepp, 1998c).ALUMINUM—1998 5.5



## Crown Cork Embalagens announced plans to build a 1.25- billion-can-per-year aluminum beverage can plant in southern Rio Grande do Sul by the end of 1999. Crown Cork Embalagens was a joint venture between Crown Cork & Seal and Brazil’s Petropar Group (Kepp, 1998a). Canada.—Alcan announced that construction had begun on a new 375,000-ton-per-year primary aluminum smelter in Alma, Quebec. The total cost was estimated to be $1.6 billion, and construction will extend over a period of 40 months. The first cells were expected to be commissioned in the fall of 2000, and full operating capacity, 18 months later. The smelter will use Pechiney AP-30 technology and will have 432 pots in 2 lines. The Alma smelter will replace the 75,000-ton-per-year Isle Maligne smelter (Alcan Aluminium Ltd., 1998b). Alcan selected SNC-Lavalin to conduct engineering and environmental studies for a possible 250,000-ton-per-year expansion at Alcan’s 272,000-ton-per-year Kitimat smelter in British Columbia. Lavalin expected to complete the study in 18 months (Regan, 1998a). Representatives of Alcan and unions affiliated with the Federation des Syndicats du Secteur de l’Aluminium and the USW signed labor agreements that will expire on December 31, 2003. The agreements included an 18-year operational stability agreement that committed the parties to do everything possible to renew future collective agreements without recourse to traditional leverage tools, such as strikes, lockouts, and other pressure tactics, that could have a negative impact on production and customer service. In addition, the collective agreements included a number of mechanisms aimed at, among other things, ensuring employees’ job security, internal equity among all company facilities, competitive wages, a competitive employee benefits program, and ongoing improvements to collective agreements (Alcan Aluminium Ltd., 1998c). Reynolds and the Confederation des Syndicat Nationaux signed a 5-year labor contract covering workers at the 400,000- ton-per-year primary aluminum smelter in Baie Comeau, Quebec. The new contract began on July 1 and will expire on May 31, 2003. Under the agreement, workers will receive annual wage increases that total 12.15% during the life of the contract and a reduction in the retirement age from 60 to 58 (Platt’s Metals Week, 1998e). Reynolds also announced the sale of its aluminum extrusion plants, located in Richmond Hill, Ontario, and Ste. Therese, Quebec, to William L. Bonnell Co. Inc., a subsidiary of Tredegar Industries Inc. The plants produce semifabricated products destined for the building and construction, transportation, electrical, machinery, and consumer durables sectors (Metal Bulletin, 1998j). China.—China National Nonferrous Metals Industry Corp. was dissolved in April and was replaced by the Nonferrous Metals Industry Bureau. Creditors’ rights and liabilities were assumed by the China National Nonferrous Metals Trading Group Corp. (Metal Bulletin, 1998c). Dubai.—Dubai Aluminium Co. (Dubal) announced a new $725 million expansion project that involves the addition of a sixth potline at its 390,000-ton-per-year smelter at Jebel Ali, Dubai. The expansion project, code named Condor, began on January 1 and was expected to increase smelter capacity to 525,000 tons per year upon completion in 2000. The project also includes a fourth anode baking kiln, new casting facilities, and the addition of two gas turbines at the company-owned powerplant (Abboud, 1998). Germany.—Aluminium Essen GmbH announced the completion of its $50 million project to rebuild the third potline at its primary aluminum smelter in Essen, Germany. The new 50,000-ton-per-year potline will increase primary metal capacity at the plant to 145,000 tons per year (Karpel, 1998). Reynolds completed the sale of its European rolling mill businesses to VAW Aluminium AG. Included in the sale were the aluminum rolling operations of Reynolds Aluminium Deutschland, Inc. in Hamburg, Germany, Reynolds Italy Slim, S.p.A., in Cisterna di Latina, Italy, and Industria Navarra del Aluminio, S.A., in Irurzun, Spain. VAW Aluminium AG is a member of the VIAG-Group headquartered in Bonn, Germany (Reynolds Metals Co., 1998d). Ghana.—A severe drought has caused serious shortages of electricity available for the 200,000-ton-per-year Volta Aluminium Co. Ltd. (Valco) smelter. Of Valco’s five potlines, only one was still in operation by the middle of the year. One line had been closed in 1994, and the other three were closed in early 1998 (Metal Bulletin, 1998f). Kaiser, which owned 90% of the Valco smelter, announced that it will operate three of the smelter’s five potlines in 1999. This decision was based on the power allocation that Valco received from the Volta River Authority, as well as market considerations and other factors. Valco began preparing for the restart in late 1998 and expected to have the three lines operating by February 1999 (Kaiser Aluminum & Chemical Corp., 1998). Greece.—Aluminium de Grèce reported the restart of all previously idled capacity at its 150,000-ton-per-year primary aluminum smelter at St. Nicolas, Distomon, Greece. The 1994 closure was part of Pechiney’s response to an oversupply of aluminum metal on the world market (Metal Bulletin, 1998b). Iceland.—U.S. aluminum producer Columbia Ventures Corp. began production at its new greenfield primary aluminum smelter in Grundartangi, Iceland. The smelter, Nordic Aluminium Corp., was a three-tier project. In the first phase, the initial production capacity of 30,000 tons per year was brought on-stream in June to be increased to 60,000 tons per year by early 1999. In phase two, set to take place in 2000, extra pots will be added to bring production to 90,000 tons per year. No firm date has been set for phase three of the project, which would double annual capacity to 180,000 tons. Alumina for the smelter will be supplied through a tolling agreement signed with Billiton Plc. (Walawalker, 1998). India.—National Aluminium Co. Ltd. received Government approval for an expansion at its primary aluminum smelter in Orissa. The company planned to add 240 pots in a single line in two rooms that would increase capacity from its 1998 level of 230,000 tons per year to 345,000 tons per year. Also included in the $530 million project was an expansion of the site’s captive powerplant from 720 megawatts to 840 megawatts (Metal Bulletin, 1998g).A feasibility study to double capacity at the 30,000-ton-peryear Indian Aluminium Co. Ltd. (Indal) smelter at Hirakud has been completed. To meet the additional power requirements of the planned expansion, the company intended to sell its captive powerplant to Tata Electric Co. in exchange for an additionalALUMINUM—1998

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## 77.5 megawatts of electricity (Raghuvanshi, 1998). Alcan acquired additional shares of Indal stock and increased its ownership to 54.6% from 34.6%. Indal was a fully integrated aluminum company with mining, refining, smelting, and fabricating facilities throughout the country (Platt’s Metals Week, 1998a). Indonesia.—Severe drought conditions, which caused hydroelectric power shortages, forced a cutback in production at P.T. Indonesia Asahan Aluminium Co.’s primary aluminum smelter in Sumatra. By November, the smelter was operating at less than 40% of its 225,000-ton-per-year capacity (Metal Bulletin, 1998i). Japan.—Furukawa Electric Co. and Sky Aluminium Co., two of Japan’s largest aluminum fabricators, announced the formation of a new 50-50 joint-venture company, Aluminium Company of Furukawa & Sky (Alfus Ltd.). Alfus Ltd. will study the possible joint purchase of raw materials and machinery and the sharing of distribution, transport, and warehousing systems (Metal Bulletin, 1998e). Furukawa Electric operated aluminum rolling and extrusion facilities with an annual production capacity of about 250,000 tons, and Sky Aluminium had an annual rolling capacity of approximately 160,000 tons (Furukawa, 1998). Nippon Light Metal Company Ltd. (NLM), Toyo Aluminium KK, and Alcan announced a complex share transaction that will result in the merger of NLM and Toyo Aluminium. In the process, Alcan’s interest in NLM will decrease from 45.6% to less than 20%. NLM was Japan’s sixth largest aluminum roller, and Toyo Aluminium was reputedly the world’s largest maker of aluminum pastes and Japan’s largest producer of aluminum foils. The merger was expected to be completed by October 1999 (Metal Bulletin, 1998a). Mozambique.—Construction began on a new 250,000-tonper-year primary aluminum smelter near Maputo. The Mozambique Aluminium Co. (Mozal) was a joint-venture project with equity provided by Billiton Plc. (47%), Mitsubishi Corp. (25%), Industrial Development Corp. of South Africa (24%), and the Government of Mozambique (4%). The smelter will consist of one potline using Pechiney’s AP-30 technology. The smelter will be capable of doubling its capacity if warranted by future aluminum demand. The commissioning of the $1.3 billion project was scheduled for 2001, and the smelter should reach full production levels by the end of 2002 (Mozambique Aluminium Co., May 14, 1998, Billiton leads largest ever investment in Mozambique with $1.3 billion Mozal aluminium project, press release, accessed August 12, 1998, at URL http://www.mozal.com). Russia.—Siberian Aluminum Co. (Sibalco) was building a vertically integrated group, including downstream fabrication, to serve the domestic market as it emerges. The principal components of Sibalco were the Sayansk aluminum smelter, the Sameco rolling mill, the Dmitrov beverage can plant, and the Sayanal foil plant. Metal from Sayansk was rolled at Sameco and then shipped to Dmitrov for can production. Can production at Dmitrov began in June with the opening of its first production line capable of producing 750 million cans per year. A second line, bringing production to 1.5 billion cans per year, was scheduled to open in November. Eventually, the plant will operate four production lines (Pirani, 1998). Spain.—Reynolds and Alcoa announced that they had signed a definitive agreement for Alcoa to purchase Reynold’s aluminum extrusion plant in Irurzun, Spain, as well as Reynolds’ distribution operation for architectural systems, which had warehouses in several cities in Spain. The Irurzun plant had the capacity to produce 22,000 tons per year of soft alloy extrusions for use primarily in industrial and residential building applications (Reynolds Metals Co., 1998a). Sweden.—Granges AB sold its 100,000-ton-per-year Sundsvall primary aluminum smelter to the management of Granges Metall AB, operator of the smelter, and an executiveof Glencore Svierge AB. The new owners also signed a longterm agreement with metal trading company Glencore International AG for tolling production of billets and slabs (Burgert, 1998). Switzerland.—Alusuisse-Lonza Holding AG announced that its Steg primary aluminum smelter would remain open until the end of 2001. Originally, the plant had been scheduled to close at the end of 1999 (Platts Metals Week, 1998d). Taiwan.—Construction work to increase flat-rolled aluminum capacity by 50,000 tons per year at CS Aluminium’s Kaohsiung Works continued. The expansion, which was expected to be completed within the next couple of years, would increase capacity at the plant to 130,000 tons per year. The plant produced sheet, plate, foil, and casting alloys. Nearly 90% of the company’s sales was for the domestic market (McCulloch, 1998). Turkey.—ETI Holding was unable to secure overseas investment partners for a planned upgrade of its Seydisehir primary aluminum smelter. The company was looking at the possibility of internal financing for the $200 million project. A conversion of the smelter’s potlines from Soderberg to prebake technology was expected to increase the plant’s capacity from 60,000 tons per year to 100,000 tons per year (Carnac, 1998). Trinidad and Tabago.—Norsk Hydro and the Government of Trinidad and Tobago signed a project agreement to work towards the establishment of a primary aluminum smelter inPoint Lisas, Trinidad. The plan was to build a 474,000-tonper-year smelter in two stages of 237,000 tons each; the first stage would be ready to begin metal production in 2002. NorskHydro had also reached agreement on basic terms for a longterm gas contract with the National Gas Company of Trinidad and Tobago to secure energy supplies for the smelter. Electricity for the plant will be supplied from a dedicated powerplant, which will be developed jointly by Norsk Hydro, Amoco Power Resources Corporation, and an internationally recognized independent power producer. Total investment for the first stage, including the smelter, cast house, powerplant, and necessary infrastructure, such as port facilities, was estimated to be $1.5 billion (Norsk Hydro AS, 1998).

Outlook

There have been some indications that the economic crisis in Asia may be easing a bit. Aluminum demand in the United States is expected to remain relatively strong, and the demand in Western Europe, though weaker, is expected to remain positive. World production is expected to continue to increase as smelter capacities also increase. The two greenfield smelterALUMINUM—1998 5.7 

## projects under construction should come on-stream in the next couple of years. Additional projects are being considered such that in the near term, metal supply should be sufficient to meet overall world demand. Demand is expected to continue to grow, with the major growth area continuing to be the domestic and foreign transportation industries.

References Cited

Abboud, Joseph, 1998, Dubal awards expansion pacts: American Metal Market, v. 106, no. 166, August 28, p. 5. Alcan Aluminium Ltd., 1998a, Alcan Aluminium Ltd., signs ten-year supply deal with General Motors: Montreal, Canada, Alcan Aluminium Ltd., press release, November 9, 1 p. ———1998b, Alcan to meet rising aluminum demand with go-ahead for Alma smelter: Montreal, Canada, Alcan Aluminium Ltd., press release, February 19, 1 p. ———1998c, Official signing by Alcan and unions affiliated with FSSA and United Steelworkers: Montreal, Canada, Alcan Aluminium Ltd., press release, June 26, 1 p. Aluminum Association Inc., 1999, Aluminum can recycling rate comes in at 62.8 percent for 1998: Washington, DC, Aluminum Association Inc. press release, March 26, 1 p. Aluminum Company of America, 1998, Alcoa completes merger with Alumax: Pittsburgh, PA, Aluminum Company of America news release, July 31, 1 p. ———1999, Alcoa annual report 1998: Pittsburgh, PA, Aluminum Company of America, 65 p. American Metal Market, 1998, Assorted Alloys sells assets, returns land: American Metal Market, v. 106, no. 245, December 23, p. 6. Boeing Company, 1998, Boeing reaches $4.3 billion agreement with aluminum mills: Seattle, WA, The Boeing Company news release, August 31, 1 p. Burgert, Philip, 1998, Granges in accord to sell aluminum smelter: American Metal Market, v. 106, no. 15, January 26, p. 16. Carnac, Rachel, 1998, ETI plans to self-finance Seydisehir upgrade: Metal Bulletin, no. 8309, September 14, p. 5. Defense Logistics Agency, 1998, Stockpile accepts aluminum bids: Fort Belvoir, VA, Defense Logistics Agency news release, April 24, 1 p. Easco Inc., 1999, Form 10-K—1998: Securities and Exchange Commission, 23 p. Furukawa, Tsukasa, 1998, Furukawa, Sky form joint venture: American Metal Market, v. 106, no. 177, September 15, p. 7. Hassler, D.J., 1998, Quanex acquires Decatur Aluminum: American Metal Market, v. 106, no. 197, October 14, p. 2. IMCO Recycling Inc., 1998, IMCO Recycling agrees to purchase Tennessee alloys plant: Irving, TX, IMCO Recycling Inc. press release, November 2, 1 p. Kaiser Aluminum & Chemical Corp. 1998, Kaiser Aluminum to operate three potlines at Valco smelter in 1999: Houston, TX, Kaiser Aluminum & Chemical Corp. press release, December 15, 1 p. ———1999, Form 10-K—1998: Securities and Exchange Commission, 63 p. Karpel, Steve, 1998, Smelter revival at Aluminium Essen: Metal Bulletin Monthly, no. 326, February, p. 42-45. Kepp, Michael, 1998a, Crown building Brazil can plant: American Metal Market, v. 106, no. 73, April 17, p. 5. ———1998b, CVRD hiking output at Albras, Alunorte: American Metal Market, v. 106, no. 38, February 27, p. 5. ———1998c, Valesul looks to up output in two stages: American Metal Market, v. 106, no. 114, June 16, p. 2. McCulloch, Russ, 1998, CS Aluminium to boost output: Metal Bulletin, no. 8301, August 13, p. 8. Metal Bulletin, 1998a, Alcan withdraws from Japanese market, Toyo Aluminium and NLM merge: Metal Bulletin, no. 8320, October 22, p. 16. ———1998b, Aluminium de Grèce to restart output this year: Metal Bulletin, no. 8249, February 2, p. 7. ———1998c, China dissolves CNNC: Metal Bulletin, no. 8273, April 30, p. 12. ———1998d, Eastern Aluminium puts up the for sale sign: Metal Bulletin, no. 8314, October 1, p. 3. ———1998e, Furukawa and Sky take step towards merger: Metal Bulletin, no. 8309, September 14, p. 7. ———1998f, Kaiser makes further cutbacks in Ghana: Metal Bulletin, no. 8268, April 9, p. 5. ———1998g, Nalco outlines details of smelter, power plant expansion: Metal Bulletin, no. 8256, February 26, p. 5. ———1998h, Norandal sells Scottsboro: Metal Bulletin, no. 8329, November 23, p. 14. ———1998i, PT Inalum starts pot reconstruction: Metal Bulletin, no. 8318, October 15, p. 5. ———1998j, Reynolds sell two extrusion plants: Metal Bulletin, no. 8252, February 12, p. 7. ———1998k, Southwire continues Hawesville expansion, labour talks to resume: Metal Bulletin, no. 8309, September 14, p. 7. ———1998l, Superior Aluminum starts new smelter: Metal Bulletin, no. 8271, April 23, p. 12. ———1998m, Wabash gets approval for Philip deal: Metal Bulletin, no. 8339, December 31, p. 10. Mining Journal, 1998, Aluminium Bahrain: Mining Journal, v. 331, no. 8490, July 24, p. 69. Norandal USA Inc., 1998, Noranda announces location of new ultra modern aluminum foil plant: Brentwood, TN, Norandal USA Inc. news release, June 10, 1 p. Norsk Hydro AS, 1998, Norsk Hydro reaches Project Agreement on aluminium plant: Stabekk, Norway, Norsk Hydro press release, November 12, 1 p. Ormet Primary Aluminum Corp., 1998, Ormet Primary Aluminum Corporation announces energy management agreement with Entergy Power Marketing Corp. (EPMC): Hannibal, OH, Ormet Primary Aluminum Corp. press release, September 28, 1 p. Pirani, Simon, 1998, Sibalco plans development of downstream production: Metal Bulletin, no. 8286, June 15, p. 7. Platt’s Metals Week, 1998a, Alcan acquires majority stake in Indian Aluminium: Platt’s Metals Week, v. 69, no. 23, June 8, p. 9-10. ———1998b, Alcan studies expanding Sebree, teams with Comalco on Ely: Platt’s Metals Week, v. 69, no. 6, February 9, p. 2-3. ———1998c, Alcoa cutback of 30,000 mt won’t affect billet, Mitsui: Platt’s Metals Week, v. 69, no. 45, November 9, p. 12. ———1998d, Alusuisse to keep Steg open: Platt’s Metals Week, v. 69, no. 12, March 23, p. 15. ———1998e, Baie Comeau gets contract: Platt’s Metals Week, v. 69, no. 27, July 6, p. 12. ———1998f, Ball to close can plants in US and China, more may come: Platt’s Metals Week, v. 69, no. 49, December 14, p. 8-9. ———1998g, Century to buy Alcoa aluminum cast plate plant: Platt’s Metals Week, v. 69, no. 51, December 28, p. 11. ———1998h, Hydro to help fund Goldendale expansion, penetrate US: Platt’s Metals Week, v. 69, no. 40, October 12, p. 12. Raghuvanshi, Vivek, 1998, Study calls for doubling Indal’s smelter capacity: American Metal Market, v. 106, no. 140, July 23, p. 5. Regan, Bob, 1998a, Alcan studies boost in Kitimat capacity: American Metal Market, v. 106, no. 24, February 6, p. 12. ———1998b, It’s last call for aluminum ball: American Metal Market, v. 106, no. 250, December 31, p. 1. Reynolds Metals Co., 1998a, Alcoa to purchase Reynolds extrusion plant in Irurzun Spain: Richmond, VA, Reynolds Metals Co. press release, December 22, 1 p. ———1998b, Reynolds Metals Company completes sale of North American can business to Ball Corporation: Richmond, VA, Reynolds Metals Co. press release, August 10, 1 p. ———1998c, Reynolds Metals Company reaches agreement to sell can business to Ball Corporation: Richmond, VA, Reynolds Metals Co. press release, April 23, 1 p. ———1998d, Reynolds Metals completes sale of European rolling operations to VAW: Richmond, VA, Reynolds Metals Co. press release, May 27, 1 p. ———1998e, Reynolds Metals completes sale of McCook aluminum sheet and plate plant: Richmond, VA, Reynolds Metals Co. press release, June 18, 1 p. ———1998f, Reynolds Metals completes sale of recycling operations: Richmond, VA, Reynolds Metals Co. press release, March 2, 1 p. ———1998g, Reynolds Metals to sell Alabama assets to Wise Alloys LLC: Richmond, VA, Reynolds Metals Co. press release, December 30, 1 p. ———1999, Form 10-K—1998: Securities and Exchange Commission, 80 p. Southwire Company, 1998, Southwire’s newest SCR® rod mill on schedule for year-end production: Hawesville, KY, Southwire Company news release, October 15, 1 p. TOMRA Systems ASA, 1998, TOMRA forms joint venture with Wise Recycling: Asker, Norway, TOMRA Systems news, June 15, 1 p. U.S. Department of Justice, 1998, Justice Department clears Alcoa’s proposed acquisition of Alumax after Alcoa agrees to sell its cast plate operations: Washington, DC, Department of Justice press release, June 15, 2 p. Walawalker, Raoul, 1998, New smelter warms up in Iceland: Metal Bulletin Monthly Supplement, no. 333, September, p. 19-23. Worden, Edward, 1998, Tobian Metals starts operations at former aluminum smelter: American Metal Market, v. 106, no. 176, September 14, p. 8. Wrigley, Al, 1998, ’99 autos to use more aluminum: American Metal Market, v. 106, no. 222, November 18, p. 2.ALUMINUM—1998

5.8 

## SOURCES OF INFORMATION

U.S. Geological Survey Publications

Aluminum. Ch. in Mineral Commodity Summaries, annual.1 

## Aluminum. Mineral Industry Surveys, monthly.1 

## Aluminum and bauxite. Ch. in United States mineral resources, U.S. Geological Survey Professional Paper 820, 1973. Bauxite and alumina. Ch. in Mineral Commodity Summaries, annual.1 

## Bauxite and alumina. Mineral Industry Surveys, quarterly.1 

## World bauxite resources, U.S. Geological Survey Professional Paper 1076-B, 1986.

Other

Aluminum. Ch. in Mineral facts and problems, U.S. Bureau of Mines Bulletin 675, 1985. Aluminum Association Inc. Aluminum Statistical Review, annual. Alumina Plants Worldwide, U.S. Bureau of Mines, 1993. Bauxite Mines Worldwide, U.S. Bureau of Mines, 1994. Primary Aluminum Plants Worldwide, U.S. Bureau of Mines, 1990.

1Prior to January 1996, published by the U.S. Bureau of Mines.TABLE 1 SALIENT ALUMINUM STATISTICS 1/

(Thousand metric tons, unless otherwise specified)

1994 1995 1996 1997 1998 United States: Primary production 3,299 3,375 3,577 3,603 3,713 Value (million dollars) $5,180 $6,390 $5,630 $6,120 $5,360 Price: (average cents per pound) U.S. market (spot) 71.2 85.9 71.3 77.1 65.5 Inventories (December 31) Aluminum industry 2/ 2,070 2,000 1,860 1,860r/ 1,930 LME stocks in U.S. warehouses 3/ 18r/ 45r/ 33r/ 8r/ 13 National Defense Stockpile 57 57 57 (4/)

-- Secondary recovery 5/ 3,090 3,190 3,310 3,550r/ 3,440 New scrap 1,580 1,680 1,730 2,020r/ 1,950 Old scrap 1,500 1,510 1,570r/ 1,530 1,500 Exports (crude and semicrude) 1,370 1,610 1,500 1,570 1,590 Imports for consumption (crude and semicrude) 3,380 2,980 2,810 3,080 3,550 Aluminum industry shipments 6/ 8,160 8,260 8,330 8,880 9,270 Supply, apparent 7/ 8,460 7,980r/ 8,340r/ 8,740r/ 9,040 Consumption, apparent 8/ 6,880 6,300r/ 6,610r/ 6,720r/ 7,090 World: Production 19,200 19,700 20,800 21,500r/ 22,100e/ e/ Estimated. r/ Revised. 1/ Data are rounded to three significant digits, except "Primary production" and "Prices." 2/ Includes ingot, semifabricated material, and scrap. Data from Current Industrial Reports, Series M33-D, U.S. Department of Commerce, Bureau of the Census. 3/ Revised to include aluminum alloyed material. 4/ Less than 1/2 unit. 5/ Metallic recovery from purchased, tolled, or imported new and old scrap expanded for full industry coverage. 6/ Shipped to domestic industry. 7/ Defined as domestic primary metal production plus secondary recovery plus imports minus exports plus adjustments for Government and industry stocks changes. 8/ Apparent supply less recovery from purchased new scrap.TABLE 2 PRIMARY ANNUAL ALUMINUM PRODUCTION CAPACITY IN THE UNITED STATES, BY COMPANY 1/

Yearend capacity (thousand metric tons) Company 1997 1998 1998 ownership Alcan Aluminum Corp.: Sebree, KY 186 186 Alcan Aluminium Ltd., 100%. Alcoa Inc.: 2/ Alcoa, TN 210 210 Alcoa Inc., 100%. Badin, NC 115 115 Do. Evansville, IN (Warrick) 300 300 Do. Ferndale, WA (Intalco) 3/ 272 272 Alcoa Inc., 61%; Mitsui & Co. Ltd., 23%; TosTem Corp., 9%; YKK Corp., 7%. Frederick, MD (Eastalco) 3/ 174 174 Do. Massena, NY 125 125 Alcoa Inc., 100%. Mount Holly, SC 3/ 205 205 Alcoa Inc.. 50.3%; Century Aluminum Co., 26.7%; Glencore Primary Aluminum Co., 23%. Rockdale, TX 315 315 Alcoa Inc., 100%. Wenatchee, WA 220 220 Do. Total 1,940r/ 1,940 Century Aluminum Co.: Ravenswood, WV 168 168 Century Aluminum Co., 100%. Columbia Falls Aluminum Co.: Columbia Falls, MT 168 168 Private interest, 100% Goldendale Aluminum Co.: Goldendale, WA 168r/ 168 Private interest, 60%; employees, 40%. Kaiser Aluminum & Chemical Corp.: Mead, WA (Spokane) 200 200 MAXXAM Inc., 100%. Tacoma, WA 73 73 Do. Total 273 273
NSA: Hawesville, KY 186 186 Southwire Co., 100%. Noranda Aluminum Inc.: New Madrid, MO 215 220 Noranda Mines Ltd., 100%. Northwest Aluminum Corp.: The Dalles, OR 82 82 Private interests, 100%. Ormet Primary Aluminum Corp.: Hannibal, OH 256 256 Ormet Corp., 100%. Reynolds Metals Co.: Longview, WA 204 204 Reynolds Metals Co., 100%. Massena, NY 123 123 Do. Troutdale, OR 121 121 Do. Total 448 448 Vanalco Inc.: Vancouver, WA 116 116 Vanalco Inc., 100%. Grand total 4,200r/ 4,210 r/ Revised. 1/ Data are rounded to three significant digits; may not add to totals shown. 2/ Individual plant capacities are U.S. Geological Survey estimates based on company reported total. 3/ Alumax interest purchased by Alcoa Inc., July 1998.TABLE 3 U.S. CONSUMPTION OF AND RECOVERY FROM PURCHASED NEW

AND OLD ALUMINUM SCRAP, BY CLASS 1/ 2/

(Metric tons)

Calculated recovery Class Consumption Aluminum Metallic 1997: Secondary smelters 1,750,000 1,240,000 1,330,000 Integrated aluminum companies 1,470,000 1,230,000 1,310,000 Independent mill fabricators 680,000r/ 588,000r/ 629,000r/ Foundries 73,900 60,700 65,400 Other consumers 10,300 9,440 9,470 Total 3,980,000r/ 3,130,000r/ 3,340,000r/ Estimated full industry coverage 4,230,000r/ 3,310,000r/ 3,550,000r/ 1998: Secondary smelters 2,080,000 1,410,000 1,520,000 Integrated aluminum companies 1,290,000 1,070,000 1,140,000 Independent mill fabricators 538,000 466,000 500,000 Foundries 72,500 59,200 63,500 Other consumers 15,000 15,000 15,000 Total 4,000,000 3,020,000 3,230,000 Estimated full industry coverage 4,270,000 3,210,000 3,440,000 r/ Revised. 1/ Excludes recovery from other than aluminum-base scrap. 2/ Data are rounded to three significant digits; may not add to totals shown.TABLE 4 U.S. STOCKS, RECEIPTS, AND CONSUMPTION OF PURCHASED NEW AND OLD ALUMINUM SCRAP AND SWEATED PIG IN 1998 1/ 2/

(Metric tons)

Stocks, Net Consump- Stocks, Class of consumer and type of scrap January 1 receipts 3/ tion December 31 Secondary smelters: New scrap: Solids 8,260r/ 237,000 235,000 10,600 Borings and turnings 12,600r/ 303,000 303,000 12,000 Dross and skimmings 3,220r/ 595,000 597,000 2,080 Other 4/ 3,480r/ 214,000 215,000 2,950 Total 27,600r/ 1,350,000 1,350,000 27,600 Old scrap: Castings, sheet, clippings 13,100r/ 539,000 543,000 9,040 Aluminum-copper radiators 2,400r/ 20,500 20,100 2,860 Aluminum cans 5/ 2,020r/ 132,000 133,000 1,110 Other 6/ 1,750 28,700 27,800 2,670 Total 19,300r/ 720,000 724,000 15,700 Sweated pig 2,400 7,220 8,750 869 Total secondary smelters 49,300r/ 2,080,000 2,080,000 44,200 Integrated aluminum companies, foundries, independent mill fabricators, other consumers: New scrap: Solids 16,400 778,000 772,000 21,900 Borings and turnings 259 22,000 22,000 215 Dross and skimmings 344r/ 8,690 8,860 173 Other 4/ 9,590 197,000 199,000 8,420 Total 26,600 1,010,000 1,000,000 30,800 Old scrap: Castings, sheet, clippings 5,600r/ 135,000 135,000 5,600 Aluminum-copper radiators 515 11,400 11,400 517 Aluminum cans 26,200r/ 728,000 734,000 19,700 Other 6/ 139 29,700 29,800 22 Total 32,500r/ 904,000 910,000 25,900 Sweated pig 117 3,950 3,930 138 Total integrated aluminum companies, etc. 59,200r/ 1,910,000 1,920,000 56,700 All scrap consumed: New scrap: Solids 24,700r/ 1,010,000 1,010,000 32,500 Borings and turnings 12,900r/ 324,000 325,000 12,200 Dross and skimmings 3,570r/ 604,000 605,000 2,260 Other 4/ 13,100r/ 412,000 413,000 11,400 Total 54,200r/ 2,360,000 2,350,000 58,400 Old scrap: Castings, sheet, clippings 18,700r/ 674,000 678,000 14,600 Aluminum-copper radiators 2,920r/ 31,900 31,500 3,380 Aluminum cans 28,300r/ 859,000 867,000 20,800 Other 6/ 1,890 58,400 57,600 2,690 Total 51,800r/ 1,620,000 1,630,000 41,500 Sweated pig 2,520 11,200 12,700 1,010 Total of all scrap consumed 109,000r/ 3,990,000 4,000,000 101,000 r/ Revised. 1/ Includes imported scrap. According to reporting companies, 28.60% of total receipts of aluminum-base scrap, or 1,140,000 metric tons, was received on toll arrangements. 2/ Data are rounded to three significant digits; may not add to totals shown. 3/ Includes inventory adjustment. 4/ Includes data on foil, can stock clippings, and other miscellaneous. 5/ Used beverage cans toll treated for primary producers are included in secondary smelter tabulation. 6/ Includes municipal wastes (includes litter) and fragmentized scrap (auto shredder).TABLE 5 PRODUCTION AND SHIPMENTS OF SECONDARY ALUMINUM ALLOYS BY

INDEPENDENT SMELTERS IN THE UNITED STATES 1/

(Metric tons)

1997 1998
Net Net Production shipments 2/ Production shipments 2/ Diecast alloys: 13% Si, 360, etc. (0.6% Cu, maximum) 66,100 66,700 47,900 47,400 380 and variations 504,000 501,000 497,000 495,000 Sand and permanent mold: 95/5 Al-Si, 356, etc. (0.6% Cu, maximum) 36,300 35,100 55,500 55,900 No. 12 and variations W W

-- -- No. 319 and variations 157,000 157,000 164,000 161,000 F-132 alloy and variations 38,800 38,600 47,700 47,600 Al-Mg alloys 639 639 639 639 Al-Zn alloys 15,900 16,100 23,700 22,900 Al-Si alloys (0.6% to 2.0% Cu) 2,020 2,130 2,020 2,020 Al-Cu alloys (1.5% Si, maximum) 925 926 924 924 Al-Si-Cu-Ni alloys 1,440 1,440 990 993 Other 12,000 12,200 905 861 Wrought alloys, extrusion billets 208,000r/ 209,000 224,000 224,000 Miscellaneous: Steel deoxidation (3/) (3/) (3/) (3/) Pure (97.0% Al) (3/) (3/) (3/) (3/) Aluminum-base hardeners 6,430 4,770 3,600 4,290 Other 4/ 91,400 91,000 119,000 119,000 Total 1,140,000 1,140,000 1,190,000 1,180,000 Less consumption of materials other than scrap: Primary aluminum 52,800r/

-- 76,800

-- Primary silicon 47,200

-- 44,800

-- Other 8,410

-- 9,210

-- Net metallic recovery from aluminum scrap and sweated pig consumed in production of secondary aluminum ingot 5/ 1,030,000 XX 1,060,000 XX r/ Revised. W Withheld to avoid disclosing company proprietary data; included with "Sand and permanent mold: Other." XX Not applicable. 1/ Data are rounded to three significant digits; may not add to totals shown. 2/ Includes inventory adjustment. 3/ Withheld to avoid disclosing company proprietary data; included with "Miscellaneous: Other." 4/ Includes other die-cast alloys. 5/ No allowance made for melt-loss of primary aluminum and alloying ingredients.TABLE 6 DISTRIBUTION OF END-USE SHIPMENTS OF ALUMINUM PRODUCTS IN THE UNITED STATES,
BY INDUSTRY 1/

1997 1998 Quantity Percent Quantity Percent (thousand of (thousand of Industry metric tons) grand total metric tons) grand total Containers and packaging 2,220 21.7 2,270 21.6 Building and construction 1,320 12.9 1,390 13.2 Transportation 2,990 29.2 3,250 30.8 Electrical 708 6.9 714 6.8 Consumer durables 694 6.8 725 6.9 Machinery and equipment 626 6.1 629 6.0 Other markets 318 3.1 286 2.7 Total to domestic users 8,880 86.8 9,270 88.0 Exports e/ 1,360 13.2 1,260 12.0 Grand total 10,200 100.0 10,500 100.0 e/ Estimated. 1/ Data are rounded to three significant digits; may not add to totals shown.

Source: The Aluminum Association Inc.

TABLE 7 U.S. NET SHIPMENTS OF ALUMINUM WROUGHT AND CAST PRODUCTS, BY PRODUCERS 1/ 2/

(Thousand metric tons)

1997 1998 p/ Wrought products: Sheet, plate, foil 4,710r/ 4,720 Rod, bar, pipe, tube, shapes 1,610r/ 1,710 Rod, wire, cable 315r/ 330 Forgings (including impacts) 97r/ 100 Powder, flake, paste 64r/ 66 Total 6,800r/ 6,930 Castings: Sand 153 NA Permanent and semipermanent mold 468 NA Die 670 NA Other 118 NA Total 1,410 NA Grand total 8,210 NA p/ Preliminary. r/ Revised. NA Not available. 1/ Net shipments derived by subtracting the sum of producers' domestic receipts of each mill shape from the domestic industry's gross shipments of that shape. 2/ Data are rounded to three significant digits; may not add to totals shown.

Source: U.S. Department of Commerce.TABLE 8

U.S. EXPORTS OF ALUMINUM, BY COUNTRY 1/

Metals and alloys, crude Plates, sheets, bars, etc. 2/ Scrap Total Quantity Value Quantity Value Quantity Value Quantity Value Country or territory (metric tons)(thousands) (metric tons) (thousands) (metric tons)(thousands) (metric tons)(thousands) 1997: Azerbaijan

-- -- -- -- -- -- -- -- Brazil 90 $340 75,600 $225,000 13 $79 75,700 $226,000
Canada 155,000 240,000 394,000 1,080,000 86,700 99,800 636,000 1,420,000 Croatia

-- -- -- -- -- -- -- -- Czech Republic

-- -- 28 267

-- -- 28 267
France 287 1,440 5,740 34,100 9 91 6,030 35,600 Germany 530 1,750 8,930 34,000 395 400 9,860 36,200 Hong Kong 4,080 7,460 20,800 55,700 31,700 43,300 56,500 106,000 Italy 57 252 3,090 12,000 20 48 3,170 12,300 Japan 95,300 160,000 37,600 162,000 35,400 47,400 168,000 370,000 Korea, Republic of 14,300 27,300 28,600 108,000 33,800 42,600 76,700 178,000 Mexico 63,000 113,000 102,000 293,000 33,400 45,600 198,000 451,000 Netherlands 85 190 1,530 8,350 67 76 1,680 8,610 Philippines 226 415 3,140 11,900 641 403 4,010 12,800 Russia 18 34 41 164 5 22 63 220 Saudi Arabia 42 32 18,100 43,500

-- -- 18,200 43,600 Singapore 190 529 3,220 34,100 107 270 3,510 34,900 Slovakia

-- -- -- -- -- -- -- -- Slovenia

-- -- 1 15

-- -- 1 15 South Africa 179 2,720 267 1,580

-- -- 446 4,300 Taiwan 9,070 16,300 14,500 46,800 61,800 64,600 85,400 128,000 Thailand 2,050 3,870 8,480 21,100 1,060 1,650 11,600 26,700 Ukraine

-- -- 8 34

-- -- 8 34 United Kingdom 1,460 13,100 14,600 75,600 4,760 9,090 20,800 97,800 Venezuela 96 581 9,740 27,300 383 523 10,200 28,400 Other 5,820 15,600 132,000 471,000 47,300 49,800 185,000 536,000r/ Total 352,000 606,000 882,000 2,750,000 338,000 406,000 1,570,000 3,760,000 1998: Azerbaijan

-- -- 18 90

-- -- 18 90 Brazil 374 1,070 75,900 204,000 93 62 76,400 205,000 Canada 118,000 192,000 427,000 1,110,000 149,000 154,000 695,000 1,460,000 Croatia 2 15

-- -- -- -- 2 15 Czech Republic 1 16 7 122

-- -- 8 137
France 185 707 6,170 27,600 51 71 6,410 28,300 Germany 794 2,190 7,150 40,200 830 1,240 8,770 43,600 Hong Kong 917 1,550 14,800 41,100 32,000 35,000 47,800 77,600 Italy 85 325 2,530 12,100 8 11 2,630 12,500 Japan 60,600 99,900 20,700 125,000 35,800 41,700 117,000 267,000 Korea, Republic of 1,230 3,520 21,200 77,000 31,800 33,800 54,300 114,000 Mexico 75,700 127,000 150,000 443,000 63,700 74,200 289,000 644,000 Netherlands 177 380 1,190 6,320 11 61 1,380 6,760 Philippines 1 14 1,640 5,250 114 91 1,760 5,360 Russia 14 53 10 126 184 408 208 587 Saudi Arabia

-- -- 6,090 18,000

-- -- 6,090 18,000 Singapore 128 325 2,330 58,900 402 551 2,860 59,800 Slovakia

-- -- 56 273

-- -- 56 273 Slovenia

-- -- 130 321

-- -- 130 321 South Africa 55 106 348 1,950

-- -- 404 2,050 Taiwan 1,420 2,670 12,800 44,600 54,500 48,800 68,700 96,100 Thailand 5 23 8,620 23,800

-- -- 8,620 23,900 Ukraine 9 13

-- -- -- -- 9 13 United Kingdom 943 5,400 12,600 71,800 514 612 14,100 77,800 Venezuela 170 346 25,000 60,200 11 30 25,200 60,500 Other 4,280 11,400 96,900 344,000 58,900 61,700 160,000 418,000 Total 265,000 449,000 893,000 2,720,000 428,000 453,000 1,590,000 3,620,000 r/ Revised. 1/ Data are rounded to three significant digits; may not add to totals shown. 2/ Includes castings, forgings, and unclassified semifabricated forms.

Source: Bureau of the Census.TABLE 9 U.S. EXPORTS OF ALUMINUM, BY CLASS 1/

1997 1998 Quantity Value Quantity Value Class (metric tons) (thousands) (metric tons) (thousands) Crude and semicrude: Metals and alloys, crude 352,000 $606,000 265,000 $449,000 Scrap 338,000 406,000 428,000 453,000 Plates, sheets, bars, strip, etc. 837,000 2,460,000 847,000 2,420,000 Castings and forgings 10,900 131,000 10,700 141,000 Semifabricated forms, n.e.c. 33,700 155,000 35,900 162,000 Total 1,570,000 3,760,000 1,590,000 3,620,000 Manufactures: Foil and leaf 100,000 298,000 65,400 215,000 Powders and flakes 8,770 35,800 9,010 37,400 Wire and cable 26,500 94,100 31,600 117,000 Total 136,000 428,000 106,000 369,000 Grand total 1,710,000 4,190,000 1,690,000 3,990,000 1/ Data are rounded to three significant digits; may not add to totals shown.

Source: Bureau of the Census.

TABLE 10 U.S. IMPORTS FOR CONSUMPTION OF ALUMINUM, BY CLASS 1/

1997 1998 Quantity Value Quantity Value Class (metric tons) (thousands) (metric tons) (thousands) Crude and semicrude: Metals and alloys, crude 2,060,000 $3,500,000 2,400,000 $3,660,000 Plates, sheets, strip, etc., n.e.c. 2/ 461,000 1,180,000 525,000 1,300,000 Pipes, tubes, etc. 14,200 72,800 14,600 75,600 Rods and bars 85,800 266,000 110,000 339,000 Scrap 454,000 574,000 501,000 572,000 Total 3,080,000 5,590,000 3,550,000 5,950,000 Manufactures: Foil and leaf 3/ 65,800r/ 236,000r/ 69,300 227,000 Flakes and powders 2,360 6,820 2,180 7,290 Wire 81,800 165,000 83,500 152,000 Total 150,000r/ 408,000r/ 155,000 387,000 Grand total 3,230,000r/ 6,000,000 3,700,000 6,340,000 r/ Revised. 1/ Data are rounded to three significant digits; may not add to totals shown. 2/ Includes plates, sheets, circles, and disks. 3/ Excludes etched capacitor foil.

Source: Bureau of the Census.TABLE 11 U.S. IMPORTS FOR CONSUMPTION OF ALUMINUM, BY COUNTRY 1/

Metals and alloys, crude Plates, sheets, bars, etc. 2/ Scrap Total Quantity Value Quantity Value Quantity Value Quantity Value Country (metric tons)(thousands)(metric tons)(thousands)(metric tons)(thousands)(metric tons)(thousands) 1997: Argentina 13,000 $22,000 1,270 $2,800 3,680 $4,370 18,000 $29,200
Australia 1,250 2,030 1,060 2,860 1,340 1,510 3,650 6,400 Bahrain

-- -- 11,800 26,600

-- -- 11,800 26,600 Belgium 321 690 4,600 13,100 140 184 5,060 14,000
Brazil 23,900 39,900 776 2,610 319 356 25,000 42,900 Canada 1,410,000 2,470,000 330,000 803,000 252,000 320,000 2,000,000 3,590,000
Croatia

-- -- 402 1,260

-- -- 402 1,260 Czech Republic

-- -- 99 277

-- -- 99 277
France 386 4,690 10,700 48,700 6,110 6,470 17,200 59,900 Germany 1,020 4,730 38,200 146,000 2,150 4,760 41,400 156,000 Italy 18 63 3,540r/ 12,100 16 5 3,570r/ 12,200r/ Japan 134 581 19,600 78,000r/ 947 1,640 20,700 80,200 Korea, Republic of 65 234 358 1,740 2,140 2,840 2,560 4,810
Latvia

-- -- -- -- -- -- -- -- Mexico 1,740 3,740 13,200 34,800 84,900 107,000 99,900 145,000
Netherlands 2,370 14,500 4,960 16,800 1,480 2,140 8,810 33,400 Norway 765 2,640 1,660 2,930

-- -- 2,420 5,570
Panama

-- -- 376 1,150 5,040 5,600 5,420 6,750
Russia 423,000 653,000 7,640 13,000 4,670 11,600 435,000 678,000
Slovakia 422 565

-- -- -- -- 422 565 Slovenia

-- -- 3,520 11,700

-- -- 3,520 11,700
South Africa 11,400 18,600 5,560r/ 11,500 809 980 17,800 31,100 Spain 151 307 14,300 32,700 994 1,280 15,400 34,300 Tajikistan 4,030 5,540

-- -- -- -- 4,030 5,540
Ukraine 4,190 6,120 19 60 614 750 4,830 6,930
United Arab Emirates

-- -- -- -- 2,460 2,910 2,460 2,910 United Kingdom 18,700 30,800 19,000 74,300 10,400 14,400 48,000 119,000
Venezuela 114,000 190,000 29,700 59,000 17,100 19,700 161,000 269,000
Other r/ 28,400 31,500 39,100 119,000 56,700 65,400 124,000 216,000 Total 2,060,000 3,500,000 562,000r/ 1,520,000 454,000 574,000 3,080,000 5,590,000
1998: Argentina 22,900 36,500 453 940 1,750 2,100 25,100 39,500 Australia 54,300 78,300 2,630 6,860 40 47 56,900 85,200
Bahrain 1,180 1,730 14,100 30,200 65 73 15,400 32,100 Belgium 1,310 2,180 6,070 17,500 556 588 7,940 20,200 Brazil 45,700 67,100 306 1,260 9,250 9,450 55,300 77,800
Canada 1,420,000 2,240,000 371,000 850,000 270,000 306,000 2,060,000 3,400,000
Croatia

-- -- 441 1,520

-- -- 441 1,520 Czech Republic

-- -- 264 838

-- -- 264 838
France 263 4,520 13,900 73,000 7,850 6,370 22,000 83,900 Germany 1,080 5,450 51,900 205,000 1,470 1,720 54,500 212,000 Italy 7 28 4,700 16,000 223 317 4,930 16,300 Japan 387 1,500 24,400 83,400 1,340 1,480 26,100 86,300 Korea, Republic of 661 863 11,300 22,700 2,760 3,720 14,700 27,300 Latvia

-- -- 14 90

-- -- 14 90
Mexico 591 1,190 12,700 35,900 80,700 99,000 93,900 136,000
Netherlands 728 1,250 4,400 14,100 1,960 2,240 7,090 17,600 Norway 4,370 8,960 727 1,500 313 412 5,410 10,900
Panama 180 382 687 1,840 6,270 6,330 7,140 8,560
Russia 605,000 845,000 27,100 58,200 28,400 30,400 661,000 934,000 Slovakia 335 445 7 11

-- -- 342 455
Slovenia

-- -- 4,700 16,600

-- -- 4,700 16,600
South Africa 15,300 21,900 3,400 7,090 469 583 19,100 29,600 Spain

-- -- 8,430 19,400 1,560 1,810 9,990 21,200 Tajikistan 20,700 29,800

-- -- -- -- 20,700 29,800
Ukraine 19,600 25,400

-- -- 1,320 1,590 20,900 27,000 United Arab Emirates 22,700 35,500 60 129 5,040 6,320 27,800 41,900 United Kingdom 10,600 15,700 19,300 77,400 12,100 14,200 42,000 107,000
Venezuela 98,600 168,000 25,100 46,600 18,400 24,900 142,000 239,000 Other 46,600 66,200 41,700 130,000 48,900 51,700 137,000 247,000
Total 2,400,000 3,660,000 649,000 1,720,000 501,000 572,000 3,550,000 5,950,000
r/ Revised. 1/ Data are rounded to three significant digits; may not add to totals shown. 2/ Includes circles, disks, rods, pipes, tubes, etc.

Source: Bureau of the Census.TABLE 12 ALUMINUM, PRIMARY: WORLD PRODUCTION, BY COUNTRY 1/ 2/

(Thousand metric tons)

Country 1994 1995 1996 1997 1998 e/ Argentina 175 186 184r/ 184r/ 185 Australia 1,317 1,297 1,372 1,495 1,6273/ Azerbaijan 5r/ e/ 4r/ 3/ 1r/ 3/ 5r/ 3/ 5 Bahrain 447 451 461 490r/ 4993/ Bosnia and Herzegovina e/ 4/ 10 10 10 15 15 Brazil 1,185 1,188 1,195 1,2003/ 1,2003/ Cameroon e/ 893/ 79 82 90r/ 88 Canada 2,255 2,172 2,283 2,327 2,3743/ China e/ 1,450 1,680 1,770 1,960r/ 2,100 Croatia 4/ 26 31 38 35e/ 35 Egypt 188 180 177 177e/ 178
France 438 372 380 399r/ e/ 400 Germany 505 575 576 572r/ 572 Ghana 141 135 137 152r/ 56
Greece 144 144 141 133r/ 135 Hungary 31 25e/ 30r/ 35r/ e/ 35 Iceland 5/ 99 100 104 123r/ 1633/ India 6/ 472 537 531 484r/ 5423/ Indonesia 6/ 222 220e/ 225e/ 216r/ 130
Iran 116 119r/ 80r/ 92r/ 95 Italy 176 198 184 188r/ 188 Japan 7/ 17 18 17 17r/ 17 Mexico 6/ -- 10 61 66r/ 66 Netherlands 219 216 227 232r/ 264 New Zealand 269 273 285 310r/ 307 Nigeria -- -- -- 3e/ 20 Norway 857 847 863 919 996 Poland 8/ 50 56 523/ 52r/ e/ 51 Romania 9/ 120 141 141r/ 163r/ 150 Russia 2,670 2,724 2,874 2,906 3,0053/ Serbia and Montenegro 4/ 7 17 37 66r/ 65 Slovakia e/ 6/ 33 31 35 35 35 Slovenia 4/ 77 58 60e/ 60e/ 50 South Africa 172 195 570r/ 673r/ 650 Spain 338 361 362 360r/ 3623/ Suriname 27 28 32 32e/ 293/ Sweden 84 95 98 98r/ 96 Switzerland 24 21 27 27r/ 323/ Tajikistan 235 232 198 189e/ 1963/ Turkey 60 62 62 62r/ 60 Ukraine e/ 100 983/ 90 1013/ 1073/ United Arab Emirates: Dubai 247 240e/ 251 260r/ e/ 3773/ United Kingdom 231 238 240 248r/ e/ 260 United States 3,299 3,375 3,577 3,603 3,7133/ Venezuela 585 630 629r/ 634r/ 580 Total 19,200 19,700 20,800 21,500r/ 22,100 e/ Estimated. r/ Revised. 1/ World totals, U.S. data, and estimated data are rounded to three significant digits. 2/ Primary aluminum is defined as "The weight of liquid aluminum as tapped from pots, excluding the weight of any alloying materials as well as that of any metal produced from either returned scrap or remelted materials." International reporting practices vary from country to country, some nations conforming to the foregoing definition and others using different definitions. For those countries for which a different definition is given specifically in the source publication, that definition is provided in this table by footnote. Table includes data available through May 10, 1999. 3/ Reported figure. 4/ Primary ingot plus secondary ingot. 5/ Ingot and rolling billet production. 6/ Primary ingot. 7/ Excludes high-purity aluminum containing 99.995% or more as follows, in metric tons: 1994--23,800; 1995--28,400; 1996--29,400; 1997--36,100 (revised); and 1998--34,800 (estimated). 8/ Primary unalloyed ingot plus secondary unalloyed ingot. 9/ Primary unalloyed metal plus primary alloyed metal, thus including weight of alloying material.