16



### ALUMINUM 1

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

Domestic Production and Use : In 2010, five companies operated nine primary aluminum smelters; six smelters

were closed the e ntire year. Demolition of two smelters that had been idle for several years was started in 2010.

Based on published market prices, the value of primary metal production was $3. 99 billion. Aluminum consumption

was centered in the East Central United States. P ackaging accounted for an estimated 31 % of domestic

consumption; the remainder was used in t ransportation, 28 %; building, 14%; electrical, 9 %; machinery, 7 %; consumer

durables, 7%; and other, 4%.

Salient Statistics

— United States : 2006 2007 2008 200 9 201 0 e

Production:

Primary 2,284 2,554 2,658 1,727 1,720

Secondary (from old scrap) 1,260 1,540 1,370 1,190 1,120

Imports for consumption 4,660 4, 02 0 3,710 3,680 3,800

Exports 2,820 2,840 3,280 2,710 1,900

Consumption, apparent 2 5,370 5,040 3,810 3,250 4

, 6 10

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

cents per pound 121.4 125.2 120.5 79.4 101.7

Stocks:

Aluminum industry, yearend 1,410 1,400 1,220 937 937

LME, U.S. warehouses, yearend 3 228 463 1,290 2,200 2,340

Employment, number 4 41,400 39,600 38,000 33 ,800 33,500

Net import reliance 5 as a percentage of

apparent consumption 34 19 E 10 38

Recycling : In 2010, aluminum recovered from purchased scrap was about 2.7 million tons, of which about 5 9 % came

from new (manufacturing) scrap and 4 1 % from old scrap ( discarded aluminum products). Aluminum recovered from

old scrap was equivalent to about 2 4 % of apparent consumption.

Import Sources ( 2006

– 09 ) : Canada, 60 %; Russia, 1 1 %; China

, 5%; Mexico , 3%; and other, 21%.

Tariff : Item Number Normal Trade Relations

12

- 31

- 10

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.

Events, Trends, and Issues : During th e first half of 2010, production from d omestic primary aluminum smelters had

stabilized after cutbacks made during 2008 and 2009 in response to price drops in the second half of 2008.

Production from a smelter in New Madrid, MO, reached full capacity in th e second quarter of 2010 after partially

closing as a result of an electrical failure in January 2009. Work on an expansion project resumed at the smelter in

New Madrid that would increase capacity to 266,000 tons per year from 250,000 tons per year by yea rend 2013.

Work continued on an expansion project at a smelter in Massena, NY, which would increase production capacity to

148,000 tons per year from 125,000 tons per year. Demolition of smelters in Fred e rick, MD, and Badin, NC, were

announced after the ow ner of both smelters was unable to obtain favorable power contracts. By the beginning of the

fourth quarter of 2010, domestic smelters operated at about 5 5 % of rated or engineered capacity.

Prepared by E. Lee Bray [(703) 648

- 4979, lbray@usgs.go v, fax: (703) 648

- 7757]17



### ALUMINUM

The United States continued to be reliant upon imports in 2010, as domestic primary production remained at

significantly lower levels than in 2008

, and exports continued to decline. Canada, China, and Russia accounted for

about 40% of total U.S. imports. U.S. exports decreased by 30% in 2010 compared with the amount exported in 2009.

China, Canada, and Mexico, in descending order, received approximately 40% of total U

. S

. exports.

The monthly average U.S. market price for primary ingot quoted by Platts Metals Week ranged between $0.934 per

pound and $1.109 per pound throughout 2010 . Prices on the London Metal Exchange (LME) followed the trend of

U.S. market prices.

World primary aluminum production increased in 2010 compa red with production in 2009

, mainly as a result of

starting new smelters and restarting smelters that had been shut down in 2008 and early in 2009. New smelters and

restarted smelters were mainly in China

, Qatar, and the United Arab Emirates. Smelters in N orway that shut down

production during midyear 2009 remained closed in 2010. World inventories of metal held by producers, as reported

by the International Aluminium Institute, increased through the end of August to about 2.4 million tons from 2.2 million

tons at yearend 2009. Inventories of primary aluminum metal held by the LME worldwide decreased during the year

to 4.4 million tons at the end of September from 4.6 million tons at yearend 2009.

World Smelter Production and Capacity :

Production Yearend capacity

2009 2010 e 2009 2010 e

United States 1,727 1,720 3,500 3,190

Australia 1,940 1,950 2,050 2,050

Bahrain 870 870 880 880

Brazil 1,540 1,550 1,700 1,700

Canada 3,030 2,920 3,090 3,020

China 12,900 16,800 19,000 18,400

Germany 292 370 620 620

Icelan d 785 780 790 790

India 1,400 1,400 1,700 2,300

Mozambique 545 550 570 570

Norway 1,130 800 1,230 1,230

Russia 3,820 3,8 5 0 4,280 4,280

South Africa 809 800 900 900

United Arab Emirates, Dubai 1,010 1,400 1,120 1,650

Venezuela 610 4 4 0 625 590

Other countrie s 4,900 5,200 6,750 6,800

World total (rounded) 37,300 41,400 48,800 49,000

World Resources : Domestic aluminum requirements cannot be met by domestic bauxite resources. 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

reserves for bauxite are sufficient to meet world demand for metal well into the future.

Substitutes : Com posites can substitute for aluminum in aircraft fuselages and wings

. Glass, paper, plastics, and

steel can substitute for aluminum in packaging. M agnesium , titanium, and steel can substitute for aluminum in ground

transportation and structural uses. Compos ites, steel, vinyl, and wood can substitute for aluminum in construction.

Copper can replace aluminum in electrical applications

.

e Est imated. E Net exporter.

1 See also Bauxite and Alumina.

2 Domestic primary metal production + recovery from old alumi num scrap + net import reliance; excludes imported scrap.

3 Includes aluminum alloy.

4 Alumina and aluminum production workers (North American Industry Classification System

— 3313). Source: U.S. Department of Labor, Bureau of

Labor Statistics.

5 Defined as imp orts

– exports + adjustments for Government and industry stock changes.

U.S. Geological Survey, Mineral Commodity Summaries, January 20 11