22



### ALUMINUM 1

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

Domestic Production and Use : In 2007, 6 companies operated 14 primary aluminum smelters; 5 smelters were temporarily idled. Based upon published market prices, the value of primary metal production was $7.1 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, 22%; building, 16%; electrical, 7%; machinery, 7%; consumer durables, 7%; and other, 3%.

Salient Statistics—United States : 2003 2004 2005 2006 2007 e

Production: Primary 2,703 2,516 2,481 2,284 2,600 Secondary (from old scrap) 1,070 1,160 1,060 1,080 1,300 Imports for consumption 4,130 4,720 5,330 5,180 4,500 Exports 1,540 1,820 2,370 2,820 2,900 Consumption, apparent 2 6,130 6,590 6,460 5,730 5,300 Price, ingot, average U.S. market (spot), cents per pound 68.1 84.0 91.0 121.4 125.2

Stocks: Aluminum industry, yearend 1,400 1,470 1,430 1,410 1,500 LME, U.S. warehouses, yearend 3 207 116 209 239 350 Employment, number 4 58,000 57,500 58,400 59,800 60,000 Net import reliance 5 as a percentage of apparent consumption 38 44 45 41 26

Recycling : In 2007, aluminum recovered from purchased scrap was about 3.5 million tons, of which about 63% came from new (manufacturing) scrap and 37% from old scrap (dis carded aluminum products). Aluminum recovered from old scrap was equivalent to about 25% of apparent consumption.

Import Sources (2003-06) : Canada, 55%; Russia, 17%; Brazil, 4%; Venezuela, 4%; and other, 20%.

Tariff : Item Number Normal Trade Relations

12-31-07 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 E. Lee Bray [(703) 648-4979, lbray@usgs.gov, fax: (703) 648-7757]23



### ALUMINUM

Events, Trends, and Issues : Domestic primary aluminum production in creased substantially owing to smelter restarts after new power contracts were obtained by producer s. Domestic smelters operated at about 69% of rated or engineered capacity.

Net import reliance as a percent of apparent consumpti on declined dramatically as domestic production increased while imports for consumption decreased. Canada and Russia accounted for almost three-fourths of total imports. U.S. exports increased slightly in 2007. China, Canada, and Mexico, in descending order, received approximately three-fourths of total U.S. exports. Mo st of the shipments to China (98%) we re in the form of aluminum scrap.

The price of primary aluminum generally rose through July 2007 before declining significantly. In January, the average monthly U.S. market price for primary ingot quoted by Platts Metals Week was $1.295 per pound; it reached a high of $1.308 per pound in April but in September, the price was $1.115 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 $1.075 per pound.

World primary aluminum production continued to increase as capacity expansions outside the United States were brought onstream. Inventories of metal held by producers, as reported by t he International Aluminium Institute, decreased through the end of July to about 2.8 million tons from 2.9 million tons at yearend 2006. Inventories of primary aluminum metal held by the LME increased during the year to 934,000 tons at the end of September from 698,000 tons at yearend 2006.

World Smelter Production and Capacity : Production Yearend capacity

2006 2007 e 2006 2007 e

United States 2,284 2,600 3,700 3,700 Australia 1,930 1,900 1,950 1,950

Bahrain 872 870 830 830 Brazil 1,498 1,700 1,650 1,700 Canada 3,050 3,100 3,060 3,100 China 9,350 12,000 10,500 14,000 Germany 537 520 670 600

Iceland 320 400 400 790 India 1,100 1,400 1,200 1,500 Mozambique 564 560 570 570 Norway 1,330 1,100 1,350 1,190 Russia 3,720 4,200 3,800 4,400

South Africa 895 900 900 900 Tajikistan 414 500 515 515 United Arab Emirates, Dubai 730 900 860 920

Venezuela 610 630 675 675

Other countries 4,510 4,500 5,240 5,360 World total (rounded) 33,700 38,000 37,900 42,700

World Resources : Domestic aluminum requirements cannot be me t by domestic bauxite re sources. Domestic

nonbauxitic aluminum resources are abundant and could m eet 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 future.

Substitutes : Composites can substitute for aluminum in aircraft fuselages and wings. Glass, paper, plastics, and steel can substitute for aluminum in packaging. Magnesium, titanium, and steel can substitute for aluminum in ground transportation and structural uses. Composites, steel, and wood can substitute for aluminum in construction. Copper can replace aluminum in electrical applications.

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 Alumina and aluminum production wo rkers (North American Industry Classification Syst em—3313). Source: U.S. Department of Labor, Bureau of

Labor Statistics.

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

U.S. Geological Survey, Mineral Commodity Summaries, January 2008