20 

ALUMINUM1

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

Domestic Production and Use: In 2003, 7 companies operated 15 primary aluminum reduction plants; 6 smelters 

were temporarily idled. Based upon published market prices, the value of primary metal production was $4 billion. 

Aluminum consumption was centered in the East Central United States. Transportation accounted for an estimated 

35% of domestic consumption; the remainder was used in packaging, 24%; building, 16%; consumer durables, 8%; 

electrical, 7%; and other, 10%. 

Salient Statistics—United States: 1999 2000 2001 2002 2003e

Production: 

 Primary 3,779 3,668 2,637 2,707 2,700 

 Secondary (from old scrap) 1,570 1,370 1,210 1,170 1,100 

Imports for consumption 4,000 3,910 3,740 4,060 4,300 

Exports 1,650 1,760 1,590 1,590 1,500 

Consumption, apparent2

 7,770 7,530 6,230 6,310 6,500 

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

 cents per pound 65.7 74.6 68.8 64.9 67.0 

Stocks: 

 Aluminum industry, yearend 1,870 1,550 1,300 1,320 1,300 

 LME, U.S. warehouses, yearend3

 14 (4) 28 45 200 

Employment, number5

 76,300 77,800 71,200 62,200 60,000 

Net import reliance6

 as a percentage of 

 apparent consumption 31 33 38 39 41 

Recycling: In 2003, aluminum recovered from purchased scrap was about 2.8 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 17% of apparent consumption. 

Import Sources (1999-2002): Canada, 58%; Russia, 18%; Venezuela, 5%; Mexico, 2%; and other, 17%. 

Tariff: Item Number Normal Trade Relations

 12/31/03

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 was relatively unchanged compared with that 

for the previous year. Most of the smelter capacity that was idled at the end of 2002 remained off line. 

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

stagnant domestic supply. Canada and Russia accounted for approximately three-fourths of total imports. U.S. 

exports continued to decrease. Canada and Mexico received an estimated two-thirds of total U.S. exports. 

The price of primary aluminum ingot fluctuated through September 2003. In January, the average monthly U.S. 

market price for primary ingot quoted by Platts Metals Week was 66.25 cents per pound; in September, the price was 

66.94 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 64.21 cents per pound. According to American Metal Market, 

prices in the aluminum scrap and secondary aluminum alloy markets fluctuated through September but closed the 

month slightly higher than the prices at the end of 2002. 

World production continued to increase as capacity expansions, most notably those in China, India, Mozambique, and 

Norway, were brought onstream. Inventories of metal held by producers, as reported by the International Aluminium 

Institute, increased slightly through the end of August to more than 3 million tons. Inventories of metal held by the 

LME exceeded 1.37 million tons at the end of September, reaching levels not seen since February 1995. 

World Smelter Production and Capacity:

 Production Yearend capacity

 2002 2003e 2002 2003e

United States 2,707 2,700 4,120 4,120 

Australia 1,836 1,850 1,820 1,850 

Brazil 1,318 1,390 1,330 1,400 

Canada 2,709 2,800 2,730 2,800 

China 4,300 5,200 5,300 6,500 

France 450 430 480 440 

Norway 1,096 1,150 1,050 1,180 

Russia 3,347 3,400 3,350 3,400 

South Africa 676 690 690 690 

Venezuela 570 580 640 640 

Other countries 6,910 7,150 7,830 8,110

 World total (rounded) 25,900 27,300 29,300 31,100 

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

New data series, alumina and aluminum production workers (North American Industry Classification System – 3313). Source: U.S. Bureau of 

Labor Statistics. 

6

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

U.S. Geological Survey, Mineral Commodity Summaries, January 2004