20



### ALUMINUM 1

(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 2003 e

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, apparent 2 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, yearend 3 14 ( 4 ) 28 45 200 Employment, number 5 76,300 77,800 71,200 62,200 60,000 Net import reliance 6 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%; Venezuel a, 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, ppl unker@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 capacit y that was idled at the end of 2002 remained off line.

Imports for consumption continued to increase, filling so me of the supply deficit created by increasing demand and a stagnant domestic supply. Canada and Russia accounted for appr oximately three-fourths of total imports. U.S. exports continued to decrease. Canada and Mexico receiv ed 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 a lloy markets fluctuated thr ough September but closed the month slightly higher than t he prices at the end of 2002.

World production continued to increase as capacity expansions, most notably thos e 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 Septem ber, reaching levels not seen since February 1995.

World Smelter Production and Capacity : Production Yearend capacity

2002 2003 e 2002 2003 e

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 me t by domestic bauxite resources. Potential

domestic nonbauxitic aluminum resources are abundant and c ould meet domestic aluminum demand. However, no processes for using these resources have been proven economic ally competitive with t hose now used for bauxite.

The world reserve base for bauxite is sufficient to m eet 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 steel can substitute for aluminum in packaging.

e Estimated.

1 See also Bauxite and Alumina.

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

3 Includes aluminum alloy.

4 Less than 1⁄2 unit.

5 New data series, alumina and aluminum produc tion workers (North American Industry Cla ssification 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