22

ALUMINUM1

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

Domestic Production and Use: In 1998, 13 companies operated 23 primary aluminum reduction plants. Montana,

Oregon, and Washington accounted for 40% of the production; New York, Maryland, Ohio, and West Virginia, 20%;

other States, 40%. Based on published market prices, the value of primary metal production in 1998 was $5.3 billion. 

Aluminum consumption, by an estimated 25,000 firms, was centered in the East Central United States. Transportation

accounted for an estimated 36% of domestic consumption in 1998; packaging, 25%; building, 14%; electrical, 8%;

consumer durables, 7%; and other, 10%.

Salient Statistics—United States: 1994 1995 1996 1997 1998e

Production: Primary 3,299 3,375 3,577 3,603 3,700

Secondary (from old scrap) 1,500 1,510 1,580 1,530 1,500

Imports for consumption 3,380 2,980 2,810 3,080 3,300

Exports 1,370 1,610 1,500 1,570 1,500

Shipments from Government stockpile

excesses — — — 57 ( )

2

Consumption, apparent 6,880 6,320 6,600 6,690 6,900 3

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

cents per pound 71.2 85.9 71.3 77.1 65.0

Stocks: Aluminum industry, yearend 2,070 2,000 1,860 1,880 1,950

LME, U.S. warehouses, yearend 16 14 12 (

2

) —

Employment, primary reduction, number 17,800 17,800 18,200 18,000 18,300

Net import reliance as a percent of 4

apparent consumption 30 23 22 23 25

Recycling: Aluminum recovered in 1998 from purchased scrap was about 3.5 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 (1994-97): Canada, 62%; Russia, 17%; Venezuela, 6%; Mexico, 3%; and other, 12%.

Tariff: Item Number Normal Trade Relations (NTR) Non-NTR5

12/31/98 12/31/98

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—9-30-986

Uncommitted Committed Authorized Disposal plan Disposals

Material inventory inventory for disposal FY 1998 FY 1998

Aluminum — — — 9 9

Prepared by Patricia A. Plunkert [(703) 648-4979, pplunker@usgs.gov, fax: (703) 648-7757]
23

ALUMINUM

Events, Trends, and Issues: Domestic primary aluminum production increased slightly in 1998 as some previously

idled capacity was brought back on-stream. Idled production capacity at the Reynolds Metals Co. smelters in Massena,

NY, Longview, WA, and Troutdale, OR, was gradually reactivated during the year. However, as of the beginning of 7

October, approximately 470,000 tons of annual domestic capacity remained closed.

In a joint press release issued at the end of July, the Aluminum Company of America (Alcoa) and Alumax Inc.

announced that the Alumax stockholders approved the company’s merger with Alcoa effective immediately. The

combined company would have approximately 100,000 employees and would operate in 250 locations in 30 countries.

U.S. imports for consumption increased significantly in 1998. Russia remained second only to Canada as a major

shipper of aluminum materials to the United States, and the level of its ingot shipments increased dramatically during

the first half of the year reaching levels equivalent to those for all of 1997.

The price of primary aluminum ingot in the United States trended downward during the first part of 1998. In January, the

average monthly U.S. market price for primary ingot quoted by Platt’s Metals Week was 71.9 cents per pound; by

August the price had fallen to 63.3 cents per pound. Prices on the London Metal Exchange (LME) followed the trend of

U.S. market prices. The monthly average LME cash price for August was 59.5 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 55- to 56-cent-per-pound range at the

beginning of the year to a 44- to 45-cent-per-pound range at the end of August.

World production increased as producers continued to bring back on-stream primary capacity that had been temporarily

idled and to start up new capacity expansions. Despite the economic crises in Asia, aluminum demand in the United

States and Western Europe remained relatively strong. Inventories of metal held by producers, as reported by the

International Primary Aluminium Institute, and inventories held by the LME fluctuated during the year with some

indications that an upward trend was possible during the latter half of the year. 

World Smelter Production and Capacity:

Production Yearend capacity

1997 1998 1997 1998 e e

United States 3,600 3,700 4,190 4,190

Australia 1,500 1,580 1,550 1,740

Brazil 1,200 1,200 1,220 1,220

Canada 2,330 2,340 2,330 2,360

China 2,000 2,200 2,380 2,580

France 390 420 430 430

Norway 919 950 953 988

Russia 2,910 2,960 2,970 2,970

South Africa 660 660 666 666

Venezuela 640 600 638 639

Other countries 5,290 5,550 6,730 6,970

 World total (rounded) 21,400 22,200 24,100 24,800

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 21 century. st

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. e

See also Bauxite and Alumina. 1

Less than 1⁄2 unit. 2

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

Defined as imports - exports + adjustments for Government and industry stock changes. 4

See Appendix B. 5

See Appendix C for definitions. 6

Reynolds Metals Co, 1998, Reynolds Metals Co. reports first-quarter results: Richmond, VA, Reynolds Metals Co. press release, April 16, 1998, 5 p. 7

U.S. Geological Survey, Mineral Commodity Summaries, January 1999