22

ALUMINUM1

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

Domestic Production and Use: In 2002, 11 companies operated 16 primary aluminum reduction plants; 6 smelters

were temporarily idled. The 11 smelters east of the Mississippi River accounted for 75% of the production; whereas

the remaining 11 smelters, which included the 9 Pacific Northwest smelters, accounted for only 25%. Based upon

published market prices, the value of primary metal production was $3.9 billion in 2002. Aluminum consumption was

centered in the East Central United States. Transportation accounted for an estimated 34% of domestic consumption

in 2002; packaging, 25%; building, 17%; consumer durables, 7%; electrical, 7%; and other, 10%.

Salient Statistics—United States: 1998 1999 2000 2001 2002e

Production:

Primary 3,713 3,779 3,668 2,637 2,700

Secondary (from old scrap) 1,500 1,570 1,370 1,210 1,200

Imports for consumption 3,550 4,000 3,910 3,740 4,000

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

Shipments from Government stockpile

excesses (

2

) — — — —

Consumption, apparent37,090 7,770 7,530 6,230 6,400

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

cents per pound 65.5 65.7 74.6 68.8 65.0

Stocks:

Aluminum industry, yearend 1,930 1,870 1,550 1,300 1,300

LME, U.S. warehouses, yearend413 14 (

2

) 28 10

Employment, primary reduction, number 18,400 17,900 17,100 15,100 13,700

Net import reliance5 as a percentage of

apparent consumption 27 31 33 38 39

Recycling: In 2002, 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 20% of apparent consumption.

Import Sources (1998-2001): Canada, 60%; Russia, 18%; Venezuela, 4%; Mexico, 2%; and other, 16%.

Tariff: Item Number Normal Trade Relations

12/31/02

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]
23

ALUMINUM

Events, Trends, and Issues: The 121,000-ton-per-year Troutdale, OR, smelter and a 76,000-ton-per-year potline at

the Rockdale, TX, smelter were permanently closed. Most of the smelter capacity that was idled in the Pacific

Northwest at the end of 2001 remained off line. However, as energy shortages began to ease and take-or-pay energy

contracts took effect, some smelters in the region began limited restarts.

Imports for consumption increased, reversing a 2-year decline. Canada and Russia accounted for approximately

three-fourths of the total imports. U.S. exports decreased slightly. Canada and Mexico received an estimated twothirds of total U.S. exports.

The price of primary aluminum ingot fluctuated through August 2002. In January, the average monthly U.S. market

price for primary ingot quoted by Platts Metals Week was 64.65 cents per pound; in August, the price was 62.55 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 58.59 cents per pound. According to American Metal Market, prices in the

aluminum scrap and secondary aluminum alloy markets increased during the first quarter of the year before beginning

a general downward trend that continued through the end of September.

World production continued to increase as temporarily idled capacity and new capacity expansions were brought onstream. Inventories of metal held by producers, as reported by the International Aluminium Institute, decreased

slightly during the first half of 2002. Inventories of metal held by the LME, however, exceeded 1.2 million tons,

reaching levels not seen since the first half of 1995.

World Smelter Production and Capacity:

Production Yearend capacity

2001 2002e

2001 2002e

United States 2,637 2,700 4,370 4,190

Australia 1,798 1,800 1,810 1,820

Brazil 1,131 1,300 1,280 1,330

Canada 2,583 2,700 2,670 2,790

China 3,250 3,800 4,250 5,000

France 462 480 475 480

Norway 1,068 1,050 1,050 1,050

Russia 3,300 3,350 3,300 3,350

South Africa 663 690 685 695

Venezuela 570 600 640 640

Other countries 6,890 6,900 7,690 7,780

World total (rounded) 24,400 25,400 28,200 29,100

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, 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.

2

Less 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 2003