20

ALUMINUM1

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

Domestic Production and Use: In 2001, 12 companies operated 23 primary aluminum reduction plants. The 11

smelters east of the Mississippi River accounted for 77% of the production; whereas the remaining 12 smelters, which

included the 10 Pacific Northwest smelters, accounted for only 23%. Based upon published market prices, the value of

primary metal production was $4 billion in 2001. Aluminum consumption, by an estimated 25,000 firms, was centered

in the East Central United States. Transportation accounted for an estimated 35% of domestic consumption in 2001;

packaging, 25%; building, 15%; consumer durables, 8%; electrical, 7%; and other, 10%.

Salient Statistics—United States: 1997 1998 1999 2000 2001e

Production:

Primary 3,603 3,713 3,779 3,668 2,600

Secondary (from old scrap) 1,530 1,500 1,570 1,370 1,300

Imports for consumption 3,080 3,550 4,000 3,910 3,600

Exports 1,570 1,590 1,640 1,760 1,500

Shipments from Government stockpile

excesses 57 (

2

) — — —

Consumption, apparent3 6,720 7,090 7,770 7,530 6,000

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

cents per pound 77.1 65.5 65.7 74.6 70.0

Stocks:

Aluminum industry, yearend 1,860 1,930 1,870 1,550 1,500

LME, U.S. warehouses, yearend4 8 13 14 (

2

) 20

Employment, primary reduction, number 18,000 18,400 17,900 17,200 15,700

Net import reliance5 as a percentage of

apparent consumption 23 27 31 33 35

Recycling: In 2001, aluminum recovered from purchased scrap was about 3.2 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 (1997-2000): Canada, 58%; Russia, 19%; Venezuela, 4%; Mexico, 3%; and other, 16%.

Tariff: Item Number Normal Trade Relations

12/31/01

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 significantly owing to smelter

production cutbacks caused by increased energy costs and reduced energy supply in the Pacific Northwest. By midyear, about 1.6 million tons per year of smelter capacity in Montana, Oregon, and Washington was closed. All but a

token 25,000 tons per year of capacity at Goldendale, WA, had been closed in the region. Most of the smelters outside

of this region were operated at or near their rated or engineered capacity.

Both U.S. imports for consumption and U.S. exports decreased in 2001. Canada continued to be the largest trading

partner, accounting for about two-thirds of total aluminum imports and one-half of the exports. Imports from Russia,

which had been on the increase over the last couple of years, decreased significantly in 2001.

Although the price of primary aluminum ingot fluctuated through August 2001, it generally trended downward. In

January, the average monthly U.S. market price for primary ingot quoted by Platts Metals Week was 75.2 cents per

pound; by August, the price was 66.1 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 August was 62.5 cents per pound. Prices in the

aluminum scrap markets paralleled the general trend of primary ingot prices.

World production decreased slightly compared with that for 2000. At the end of June 2001, inventories of metal held by

producers, as reported by the International Aluminium Institute, were at approximately the same level as those at the end

of 2000; whereas LME inventories had doubled.

World Smelter Production and Capacity:

Production Yearend capacity

2000 2001e 2000 2001e

United States 3,668 2,600 4,270 4,280

Australia 1,770 1,800 1,770 1,770

Brazil 1,280 1,200 1,260 1,260

Canada 2,370 2,500 2,370 2,550

China 2,550 2,700 2,640 2,640

France 441 450 450 450

Norway 1,030 1,000 1,020 1,020

Russia 3,240 3,200 3,200 3,200

South Africa 671 680 676 676

Venezuela 570 570 640 640

Other countries 6,440 6,680 7,500 7,670

World total (rounded) 24,000 23,400 25,800 26,200

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 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. — Zero.

1See also Bauxite and Alumina.

2Less 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.

U.S. Geological Survey, Mineral Commodity Summaries, January 2002