16 

### ALUMINUM 1 (Data in thousand metric tons of metal, unless noted) Domestic Production and Use : In 1995, 13 companies operated 22 primary aluminum reduction plants. Montana, Oregon, and Washington accounted for 35% of the producti on; Kentucky, North Carolina, South Carolina, and Tennessee, 20%; other States, 45%. Based on published market prices, output of primary metal in 1995 was valued at $6.3 billion. Aluminum consumption, by an estimated 25,000 firms, was centered in the East Central United States. Transportation accounted for an estimated 28% of domesti c consumption in 1995; packaging, 28%; building, 17%; electrical, 8%; consumer durables, 8%; and other uses, 11%. Salient Statistics—United States : 1991 1992 1993 1994 1995 e Production: Primary 4,121 4,042 3,695 3,299 3,350 Secondary (from old scrap) 1,320 1,610 1,630 1,500 1,600 Imports for consumption 1,490 1,730 2,540 3,380 3,300 Exports 1,760 1,450 1,210 1,370 1,700 Shipments from Government stockpile

excesses 2 — (55) — — — Consumption, apparent 3 5,040 5,730 6,600 6,880 6,500 Price, ingot, average U.S. market (spot),

cents per pound 59.5 57.5 53.3 71.2 85.0 Stocks: Aluminum industry, yearend 1,780 1,880 1,980 2,070 2,100 LME, U.S. warehouses, yearend 168 214 168 16 10 Employment: Primary reduction e 19,900 20,000 18,700 17,800 17,900 Secondary smeltere 3,600 3,600 3,600 3,600 3,600 Net import reliance 4as a percent of

apparent consumption E 1 19 30 25 Recycling : Aluminum recovered in 1995 from purchased scrap was about 3.3 million tons, of which about 50% came from new (manufacturing) scrap and 50% from old scrap (di scarded aluminum products). Aluminum recovered from old scrap was equivalent to about 25% of apparent consumption. Import Sources (1991-94) : Canada, 68%; Russia, 12%; Venezuel a, 5%; Brazil, 2%; and other, 13%. Tariff : Item Number Most favored nation (MFN) Non-MFN 5 12/31/95 12/31/95 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—9-30-95 Uncommitted Committed Authorized Disposals Material inventory inventory for disposal Jan.-Sept. 95 Aluminum 57 — — —

Prepared by Patricia A. Plunkert, (703) 648-4979.17 

### ALUMINUM Events, Trends, and Issues : Domestic primary aluminum production increased slightly in 1995 as companies continued their temporary shutdowns in production capacity. By the end of the year, domestic smelters were operating at about 80% of engineered or rated capacity. U.S. imports for consumption remained at elevated levels . Imports from Russia continued on track to exceed 600,000 tons for the second consecutive year. This dramatic increase in imports during the last 3 years has made Russia second only to Canada as a major shipper of aluminum products into the United States. Exports of aluminum increased significantly as domestic demand for aluminum began toslow from the rapid growth rates evident during the last 2 years. The price of primary aluminum ingot trended downward duri ng the first 9 months of 1995. In January, the average monthly U.S. spot price for primary ingot quoted by Platt' s Metals Week was 99.7 cents per pound; by September, the price had decreased to 81.8 cents per pound. Prices on the London Metal Exchange (LME) followed the trend of U.S. spot prices. The monthly average LME cash price for S eptember was 79.9 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 70- to 72-cent-per-pound range in January to a 62- to 64-cent-per-pound range at the end of September. World inventories of metal held by the LME continued to decreas e dramatically during the first half of the year. By the end of August, inventories held by the LME had decreased by mo re than 2 million tons from their record high of 2.66 million tons at the end of May 1994. In September 1995, however, this rate of decline had slowed considerably. Inventories of metal held by producers, as reported by the International Primary Aluminium Institute, fluctuated during the first half of the year. World Smelter Production and Capacity : Production Yearend capacity 1994 1995 e 1994 1995 e United States 3,300 3,350 4,160 4,180 Australia 1,320 1,300 1,420 1,420 Brazil 1,200 1,210 1,210 1,210 Canada 2,250 2,240 2,280 2,280 France 400 400 422 422 Norway 857 845 887 887 Russia 2,670 2,710 2,970 2,970 Venezuela 580 600 610 630 Other countries 6,570 6,650 8,020 8,180

World total (rounded) 19,100 19,300 22,000 22,200
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 econom ically 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 st eel can substitute for aluminum in packaging.

e Estimated. E Net exporter. 1 See also Bauxite. 2 Data in parentheses denote stockpile acquisitions. 3 Domestic primary metal production + recovery from old aluminum scrap + net import reliance. 4 Defined as imports - exports + adjustments for Government and industry stock changes.
5 See Appendix B. Mineral Commodity Summaries, January 1996