22

ALUMINUM1

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

Domestic Production and Use: In 1999, 12 companies operated 23 primary aluminum reduction plants. Montana,

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

other States, 40%. Based on published market prices, the value of primary metal production in 1999 was $5.5 billion. 

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

accounted for an estimated 38% of domestic consumption in 1999; packaging, 24%; building, 14%; electrical, 8%;

consumer durables, 7%; and other, 9%.

Salient Statistics—United States: 1995 1996 1997 1998 1999e

Production: Primary 3,375 3,577 3,603 3,713 3,800

Secondary (from old scrap) 1,510 1,570 1,530 1,500 1,400

Imports for consumption 2,980 2,810 3,080 3,550 4,000

Exports 1,610 1,500 1,570 1,590 1,700

Shipments from Government stockpile

excesses — — 57 (

2

) —

Consumption, apparent36,300 6,610 6,720 7,090 7,500

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

cents per pound 85.9 71.3 77.1 65.5 65.5

Stocks: Aluminum industry, yearend 2,000 1,860 1,860 1,930 1,950

LME, U.S. warehouses, yearend445 33 8 13 20

Employment, primary reduction, number 17,800 18,200 18,000 18,200 17,500

Net import reliance5 as a percent of

apparent consumption 23 22 23 27 30

Recycling: Aluminum recovered in 1999 from purchased scrap was about 3.5 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 (1995-98): Canada, 62%; Russia, 17%; Venezuela, 5%; Mexico, 3%; and other, 13%.

Tariff: Item Number Normal Trade Relations

12/31/99

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]
23

ALUMINUM

Events, Trends, and Issues: Domestic primary aluminum production continued to increase, a trend which began in

1995. Domestic smelters operated at about 90% of rated or engineered capacity.

Two merger agreements involving major aluminum companies were announced during the year. Alcoa Inc. and

Reynolds Metals Co. announced plans to merge,6 and a three-way merger involving Alcan Aluminium Ltd., Pechiney,

and Algroup of Alusuisse-Lonza Holding AG was also announced.7 At the beginning of October, both groups were still

awaiting approval from the U.S. Department of Justice.

Once again, U.S. imports for consumption increased significantly. Russia remained second only to Canada as a major

shipper of aluminum materials to the United States. By the end of August, U.S. imports of aluminum ingots from

Russia were close to the level of Russian ingot imports for all of 1998. U.S. exports of aluminum also continued to

increase in 1999.

The price of primary aluminum ingot in the United States trended upward through September 1999. In January, the

average monthly U.S. market price for primary ingot quoted by Platt’s Metals Week was 58.8 cents per pound; by

September the price had risen to 71.3 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 September was 67.7 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, increased from a 44- to 45-cent-per-pound range at the

beginning of the year to a 48- to 50-cent-per-pound range at the end of September.

World production continued to increase as temporarily idled capacity and new capacity expansions were brought onstream. Aluminum demand in the United States and Western Europe remained strong with indications that the

economic crises in Asia were easing. Despite fluctuations during the year, inventories of metal held by producers, as

reported by the International Primary Aluminium Institute, and LME inventories were at approximately the same levels

at the end of September as they were at the beginning of the year.

World Smelter Production and Capacity:

Production Yearend capacity

1998 1999e1998 1999e

United States 3,713 3,800 4,210 4,260

Australia 1,630 1,700 1,760 1,770

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

Canada 2,370 2,380 2,360 2,360

China 2,100 2,200 2,580 2,640

France 400 400 430 430

Norway 996 1,000 996 996

Russia 3,010 3,100 3,160 3,190

South Africa 650 650 676 676

Venezuela 580 570 640 640

Other countries 5,470 5,740 7,040 7,240

 World total (rounded) 22,100 22,700 25,100 25,400

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., 1999, Alcoa and Reynolds agree to merge: Pittsburgh, PA, Alcoa news release, August 19, 1 p.

7Alcan Aluminium Ltd., 1999, Alcan, Pechiney, and Algroup sign definitive three-way combination agreement: Montreal, Canada, Alcan press

release, September 16, 2 p.

U.S. Geological Survey, Mineral Commodity Summaries, February 2000