18

ALUMINUM1

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

Domestic Production and Use: In 2000, 12 companies operated 23 primary aluminum reduction plants. Montana,

Oregon, and Washington accounted for 35% of the production; Maryland, New York, Ohio, and West Virginia, 20%;

and other States, 45%. Based upon published market prices, the value of primary metal production in 2000 was $6.1

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

Transportation accounted for an estimated 37% of domestic consumption in 2000; packaging, 22%; building, 15%;

consumer durables, 8%; electrical, 8%; and other, 10%.

Salient Statistics—United States: 1996 1997 1998 1999 2000e

Production: Primary 3,577 3,603 3,713 3,779 3,700

Secondary (from old scrap) 1,570 1,530 1,500 1,550 1,600

Imports for consumption 2,810 3,080 3,550 4,000 4,200

Exports 1,500 1,570 1,590 1,640 1,750

Shipments from Government stockpile

excesses — 57 (

2

) — —

Consumption, apparent36,610 6,720 7,090 7,740 7,900

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

cents per pound 71.3 77.1 65.5 65.7 75.0

Stocks: Aluminum industry, yearend 1,860 1,860 1,930 1,870 1,700

LME, U.S. warehouses, yearend433 8 13 14 2

Employment, primary reduction, number 18,200 18,000 18,400 18,200 18,100

Net import reliance5 as a percent of

apparent consumption 22 23 27 31 33

Recycling: Aluminum recovered in 2000 from purchased scrap was about 4 million tons, of which about 60% came

from new (manufacturing) scrap and 40% from old scrap (discarded aluminum products). Aluminum recovered from

old scrap was equivalent to about 20% of apparent consumption.

Import Sources (1996-99): Canada, 61%; Russia, 18%; Venezuela, 5%; Mexico, 3%; and other, 13%.

Tariff: Item Number Normal Trade Relations

12/31/00

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 owing in large part to the smelter

production cutbacks caused by increased energy costs, particularly in the Pacific Northwest. Domestic smelters

operated at about 87% of rated or engineered capacity.

The mergers of Alcoa Inc. with Reynolds Metals Company6 and Alcan Aluminium Limited with algroup (the aluminum

division of Alusuisse Lonza Group Inc.),

7

 announced in 1999, were approved by the U.S. Department of Justice and

the European Union. Stock option plans and required facility divestments were initiated by both groups during 2000. 

Century Aluminum Co. reached a definitive agreement with Southwire Co. to acquire Southwire’s 237,000-ton-per-year

primary aluminum smelter in Hawesville, KY. The acquisition was subject to the completion of a labor agreement, the

arrangement of financing, and the receipt of regulatory approval.8

Imports for consumption continued to increase, a trend that began in 1996. Canada and Russia accounted for more

than three-fourths of the total imports. U.S. exports also continued to increase in 2000.

The price of primary aluminum ingot fluctuated through September 2000. In January, the average monthly U.S.

market price for primary ingot quoted by Platt’s Metals Week was 80.1 cents per pound; in September, the price was

77.2 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 September was 72.6 cents per pound. Prices in the aluminum scrap markets

paralleled the general trend of primary ingot prices.

World production increased slightly compared with that for 1999. Inventories of metal held by producers, as reported

by the International Primary Aluminium Institute, and LME inventories decreased significantly during the first half of

2000.

World Smelter Production and Capacity:

Production Yearend capacity

1999 2000e

1999 2000e

United States 3,779 3,700 4,270 4,270

Australia 1,720 1,740 1,770 1,770

Brazil 1,250 1,260 1,220 1,260

Canada 2,390 2,370 2,300 2,300

China 2,450 2,600 2,640 2,640

France 400 450 430 430

Norway 1,030 1,030 1,000 1,020

Russia 3,150 3,200 3,190 3,200

South Africa 687 690 676 676

Venezuela 570 580 640 640

Other countries 5,650 6,240 7,240 7,480

 World total (rounded) 23,100 23,900 25,400 25,700

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.

eEstimated.

1See also Bauxite and Alumina.

2

Less than 1⁄2 unit.

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

4

Includes aluminum alloy.

5Defined as imports - exports + adjustments for Government and industry stock changes.

6Alcoa Inc., 2000, Alcoa completes merger with Reynolds Metals: Pittsburgh, PA, and Richmond, VA, Alcoa Inc. press release, May 3, 1 p.

7Alcan Aluminium Limited, 2000, Alcan and algroup to merge: Montreal, Canada, and Zurich, Switzerland, Alcan Aluminium Limited press release,

June 1, 2 p.

8Platt’s Metals Week, 2000, Century/Southwire reach deal: Platt’s Metals Week, v. 71, no. 36, September 4, p. 9.

U.S. Geological Survey, Mineral Commodity Summaries, January 2001