20 

ALUMINUM1

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

Domestic Production and Use: In 2004, 6 companies operated 14 primary aluminum reduction plants; 6 smelters 

continued to be temporarily idled. Based upon published market prices, the value of primary metal production was 

$4.5 billion. Aluminum consumption was centered in the East Central United States. Transportation accounted for an 

estimated 38% of domestic consumption; the remainder was used in packaging, 29%; building, 13%; consumer 

durables, 6%; electrical, 6%; and other, 8%. 

Salient Statistics—United States: 2000 2001 2002 2003 2004e

Production: 

 Primary 3,668 2,637 2,707 2,703 2,500 

 Secondary (from old scrap) 1,370 1,210 1,170 1,070 1,200 

Imports for consumption 3,910 3,740 4,060 4,130 4,300 

Exports 1,760 1,590 1,590 1,540 1,700 

Consumption, apparent2

 7,530 6,230 6,320 6,130 6,300 

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

 cents per pound 74.6 68.8 64.9 68.1 82.0 

Stocks: 

 Aluminum industry, yearend 1,550 1,300 1,320 1,400 1,500 

 LME, U.S. warehouses, yearend3

 (4) 28 45 207 100 

Employment, number5

 77,800 71,200 61,700 58,300 58,200 

Net import reliance6

 as a percentage of 

 apparent consumption 33 38 39 38 41 

Recycling: In 2004, aluminum recovered from purchased scrap was about 3 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 19% of apparent consumption. 

Import Sources (2000-03): Canada, 59%; Russia, 17%; Venezuela, 5%; Mexico, 2%; and other, 17%. 

Tariff: Item Number Normal Trade Relations

 12-31-04

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] 
 21 

ALUMINUM 

Events, Trends, and Issues: Domestic primary aluminum production decreased owing to cutbacks attributed to 

increased energy and alumina costs. Most of the production decreases continued to take place in the Pacific 

Northwest. Domestic smelters operated at about 63% of rated or engineered capacity. 

Imports for consumption continued to increase, filling some of the supply deficit created by increases in demand and 

decreases in domestic production. Canada and Russia continued to account for approximately three-fourths of total 

imports. U.S. exports also increased in 2004. Canada, Mexico, and China, in descending order, received more than 

80% of total U.S. exports. 

Although the price of primary aluminum fluctuated through September 2004, it generally trended upward. In January, 

the average monthly U.S. market price for primary ingot quoted by Platts Metals Week was 76.6 cents per pound; in 

September, the price was 84.4 cents per pound. Prices on the London Metal Exchange (LME) followed the trend of 

U.S. market prices, but contracts traded in a slightly narrower range. The monthly average LME cash price for 

September was 78.2 cents per pound. 

World production continued to increase as capacity expansions outside the United States were brought onstream and 

became fully operational. Inventories of metal held by producers, as reported by the International Aluminium Institute, 

increased slightly through the end of August to about 3.1 million tons. Inventories of metal held by the LME 

decreased dramatically during the year. At the beginning of 2004, LME inventories exceeded 1.4 million tons, but by 

the end of September, inventories had fallen to 681 thousand tons, the lowest level since August 2001. 

World Smelter Production and Capacity:

 Production Yearend capacity

 2003 2004e 2003 2004e

United States 2,703 2,500 4,140 4,000 

Australia 1,860 1,880 1,850 1,880 

Brazil 1,380 1,450 1,420 1,450 

Canada 2,790 2,640 2,790 2,850 

China 5,450 6,100 5,700 6,800 

Mozambique 405 510 410 540 

Norway 1,150 1,250 1,200 1,300 

Russia 3,480 3,600 3,500 3,600 

South Africa 738 820 730 850 

Venezuela 601 600 640 640 

Other countries 7,160 7,500 8,100 8,400

 World total (rounded) 27,700 28,900 30,500 32,300 

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, steel, and wood can substitute for aluminum 

in construction. Glass, paper, plastics, and steel 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

Less than 1⁄2 unit. 

5

Alumina and aluminum production workers (North American Industry Classification System—3313). Source: U.S. Department of Labor, Bureau of 

Labor Statistics. 

6

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

U.S. Geological Survey, Mineral Commodity Summaries, January 2005