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### ALUMINUM 1 (Data in thousand metric tons of metal, unless otherwise noted) Domestic Production and Use:In 1996, 13 companies operated 22 primary aluminum reduction plants. Montana, Oregon, and Washington accounted for 40% of the production; Kentucky, North Carolina, South Carolina, and Tennessee, 20%; other States, 40%. Based on published market prices, output of primary metal in 1996 was valued at $5.6 billion. Aluminum consumption, by an estimated 25,000 firms, was centered in the East Central United States. Transportation accounted for an estimated 32% of domestic consumption in 1996; packaging, 28%; building, 15%; electrical, 8%; consumer durables, 8%; and other, 9%. Salient Statistics—United States : 1992 1993 1994 1995 1996e Production: Primary 4,042 3,695 3,299 3,375 3,600

Secondary (from old scrap) 1,610 1,630 1,500 1,510 1,400 Imports for consumption 1,730 2,540 3,380 2,970 2,800 Exports 1,450 1,210 1,370 1,610 1,500 Shipments from Government stockpile excesses (55)

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2 Consumption, apparent 5,730 6,600 6,880 6,320 6,300 3 Price, ingot, average U.S. market (spot), cents per pound 57.5 53.3 71.2 85.9 70.0 Stocks: Aluminum industry, yearend 1,880 1,980 2,070 2,000 2,000

LME, U.S. warehouses, yearend 214 168 16 14 20 Employment: Primary reduction , number 20,000 18,700 17,800 17,700 18,000 e Secondary smelter , number 3,600 3,600 3,600 3,600 3,600 e Net import reliance as a percent of 4 apparent consumption 1 19 30 23 21 Recycling :Aluminum recovered in 1996 from purchased scrap was about 3.1 million tons, of which about 55% came from new (manufacturing) scrap and 45% from old scrap (discarded aluminum products). Aluminum recovered from old scrap was equivalent to about 20% of apparent consumption. Import Sources (1992-95):Canada, 64%; Russia, 16%; Venezuela, 5%; Brazil, 3%; and other, 12%.
Tariff: Item Number Most favored nation (MFN) Non-MFN 5 12/31/96 12/31/96 Unwrought (in coils) 7601.10.3000 2.6% ad val. 18.5% ad val. Unwrought (other than aluminum alloys) 7601.10.6000 Free 11.0% ad val. Waste and scrap 7602.00.0000 Free Free. Depletion Allowance: None. 1 Government Stockpile: Stockpile Status—9-30-96 Uncommitted Committed Authorized Disposals Material inventory inventory for disposal Jan.-Sept. 96 Aluminum 57

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Prepared by Patricia A. Plunkert, (703) 648-4979 [Fax: (703) 648-7757].19 

### ALUMINUM Events, Trends, and Issues :Domestic primary aluminum production increased slightly in 1996 as companies slowly began to restart some of the production capacity that had been temporarily idled. By the end of the year, domestic smelters were operating at about 85% of engineered or rated capacity. U.S. imports for consumption continued to decline in 1996. Although Russia remained second only to Canada as a major shipper of aluminum products to the United States, the level of its shipments continued to decline from the record high level reached in 1994. Exports of aluminum declined for the first time since 1993. The price of primary aluminum ingot continued to decrease, but at a much slower pace than in the previous year. In January, the average monthly U.S. spot price for primary ingot quoted by Platt's Metals Week was 75.1 cents per pound; by August, the price had decreased to 69.4 cents per pound. Prices on the London Metal Exchange (LME) followed the trend of the U.S. spot prices. The monthly average LME cash price for August was 66.4 cents per pound. Prices in the aluminum scrap markets paralleled the general trend of primary ingot prices. The buying price for aluminum used beverage can scrap, as quoted by American Metal Market, decreased from a 58- to 60-cent-per-pound range in January to a 50- to 52-cent-per-pound range at the end of August. World production increased as producers slowly brought back on-stream primary production capacity that had been temporarily idled over the past few years. Demand for aluminum during the first part of the year was weak in response to the general slowing of the world economy. Inventories of metal held by producers, as reported by the International Primary Aluminum Institute, declined during the first half of 1996. Inventories of metal held by the LME, however, rose during the same period and were approaching 1 million tons by the end of September. This increase reversed the rapid decline in LME inventories that began in June 1994, which saw inventory levels drop from more than 2.6 million tons to slightly more than 0.5 million tons by September 1995. World Smelter Production and Capacity: Production Yearend capacity 1995 1996 1995 1996 e e United States 3,375 3,600 4,180 4,180 Australia 1,297 1,370 1,420 1,420 Brazil 1,188 1,200 1,210 1,210 Canada 2,172 2,270 2,280 2,280 France 400 400 422 422 Norway 847 860 887 907 Russia 2,722 2,850 2,970 2,970 Venezuela 630 630 630 630 Other countries 6,770 7,350 8,200 8,480 World total (rounded) 19,400 20,500 22,200 22,500
World Resources :Domestic aluminum requirements cannot be met by domestic bauxite resources. Potential 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 21st century. Substitutes :Copper can replace aluminum in electrical applications; magnesium, titanium, and steel can substitute for aluminum in structural and ground transportation uses. Composites, wood, and steel can substitute for aluminum in construction. Glass, plastics, paper, and steel can substitute for aluminum in packaging.

Estimated. eSee also Bauxite. 1 Data in parentheses denote stockpile acquisitions. 2Domestic primary metal production + recovery from old aluminum scrap + net import reliance. 3Defined as imports - exports + adjustments for Government and industry stock changes. 4See Appendix B. 5 U.S. Geological Survey, Mineral Commodity Summaries, February 1997