22



### ALUMINUM 1

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

Domestic Production and Use : In 2005, 6 companies operated 15 primary aluminum smelters; 4 smelters continued to be temporarily idled. Based upon published mark et prices, the value of primary metal production was $4.8 billion. Aluminum consumption was centered in the East Cent ral United States. Tran sportation accounted for an estimated 39% of domestic consumption; the remainder was used in packaging, 28%; building, 14%; consumer durables, 6%; electrical, 6%; and other, 7%.

Salient Statistics—United States : 2001 2002 2003 2004 2005 e

Production: Primary 2,637 2,707 2,703 2,516 2,500 Secondary (from old scrap) 1,210 1,170 1,070 1,160 1,100 Imports for consumption 3,740 4,060 4,130 4,720 5,600 Exports 1,590 1,590 1,540 1,820 2,300 Consumption, apparent 2 6,230 6,320 6,130 6,590 6,800 Price, ingot, average U.S. market (spot), cents per pound 68.8 64.9 68.1 84.0 88.0

Stocks: Aluminum industry, yearend 1,300 1,320 1,400 1,470 1,550 LME, U.S. warehouses, yearend 3 28 45 207 116 150 Employment, number 4 71,200 61,700 58,000 56,900 56,000 Net import reliance 5 as a percentage of apparent consumption 38 39 38 44 47

Recycling : In 2005, aluminum recovered from purchased scrap was ab out 3 million tons, of which about 63% came from new (manufacturing) scrap and 37% from old scrap (discarded aluminum products). Aluminum recovered from old scrap was equivalent to about 16% of apparent consumption.

Import Sources (2001-04) : Canada, 58%; Russia, 17%; Venezuela, 5%; Brazil, 3%; and other, 17%.

Tariff : Item Number Normal Trade Relations

12-31-05 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 decrea sed slightly owing to cutbacks attributed to increased energy and alumina costs. Most of the production decreases co ntinued to take place in the Pacific Northwest. Domestic smelters operated at about two-thirds of rated or engineered capacity.

Net imports for consumption increased 14%, filling the su pply deficit created by in creased demand an d decreased domestic production. Canada and Russia accounted for approxi mately two-thirds of total imports. U.S. exports also increased in 2005. Canada, China, and Mexico, in descendi ng order, received more than three-fourths of total U.S. exports.

The price of primary aluminum fluctuated through September 2005, but was generally higher than that of 2004. In January, the average monthly U.S. mark et price for primary ingot quoted by Pl atts Metals Week was 89.8 cents per pound; it reached a high of 96.9 cents per pound in March; and in September, the price was 86.5 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 83.4 cents per pound.

World primary aluminum production continued to increase as capacity expansions outside the United States were brought onstream. Inventories of meta l held by producers, as reported by t he International Aluminium Institute, increased through the end of August to about 3.4 million tons from 3. 2 million tons at yearen d 2004. Inventories of primary aluminum metal held by the LME decreased slight ly during the year to 512 thousand tons at the end of September from 693 thousand tons at yearend 2004.

World Smelter Production and Capacity : Production Yearend capacity

2004 2005 e 2004 2005 e

United States 2,516 2,500 3,700 3,700 Australia 1,900 1,920 1,910 1,930 Brazil 1,460 1,470 1,450 1,470 Canada 2,590 2,800 2,790 3,010 China 6,670 7,200 8,260 9,250 Mozambique 547 550 542 554 Norway 1,320 1,350 1,320 1,380 Russia 3,590 3,650 3,640 3,760

South Africa 863 830 850 858

Venezuela 624 620 646 650

Other countries 7,710 8,300 8,510 8,900 World total (rounded) 29,800 31,200 33,600 35,500

World Resources : Domestic aluminum requirements cannot be me t by domestic bauxite re sources. Domestic

nonbauxitic aluminum resources are abundant and could m eet domestic aluminum demand. However, no processes for using these resources have been proven economically co mpetitive 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 applic ations; magnesium, titanium, and steel can substitute for aluminum in structural and ground transportation uses. Composites, steel, and wood can substitute for aluminum in construction. Glass, paper, plastics, and st eel can substitute for aluminum in packaging.

e Estimated.

1 See also Bauxite and Alumina.

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

3 Includes aluminum alloy.

4 Alumina and aluminum production workers (Nor th American Industry Classification System— 3313). Source: U.S. Department of Labo r, Bureau of

Labor Statistics.

5 Defined as imports – exports + adjustment s for Government and industry stock changes.

U.S. Geological Survey, Mineral Commodity Summaries, January 2006