18

ALUMINUM1

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

Domestic Production and Use: In 1997, 13 companies operated 22 primary aluminum reduction plants. Montana,

Oregon, and Washington accounted for 40% of the production; Kentucky, North Carolina, South Carolina, and

Tennessee, 20%; other States, 40%. Based on published market prices, the value of primary metal production in 1997

was $5.9 billion. Aluminum consumption, by an estimated 25,000 firms, was centered in the East Central United States. 

Transportation accounted for an estimated 32% of domestic consumption in 1997; packaging, 26%; building, 16%;

electrical, 8%; consumer durables, 8%; and other, 10%.

Salient Statistics—United States: 1993 1994 1995 1996 1997e

Production: Primary 3,695 3,299 3,375 3,577 3,600

Secondary (from old scrap) 1,630 1,500 1,510 1,570 1,700

Imports for consumption 2,540 3,380 2,970 2,810 3,100

Exports 1,210 1,370 1,610 1,500 1,600

Shipments from Government stockpile

excesses — — — — 57

Consumption, apparent 6,600 6,880 6,320 6,620 6,900 2

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

cents per pound 53.3 71.2 85.9 71.3 75

Stocks: Aluminum industry, yearend 1,980 2,070 2,000 1,830 1,800

LME, U.S. warehouses, yearend 168 16 14 12 10

Employment, primary reduction, number 18,800 17,800 17,800 18,200 18,000

Net import reliance as a percent of 3

apparent consumption 19 30 23 22 23

Recycling: Aluminum recovered in 1997 from purchased scrap was about 3.5 million tons, of which about 50% came

from new (manufacturing) scrap and 50% from old scrap (discarded aluminum products). Aluminum recovered from

old scrap was equivalent to about 25% of apparent consumption.

Import Sources (1993-96): Canada, 62%; Russia, 18%; Venezuela, 5%; Mexico, 3%; and other, 12%.

Tariff: Item Number Most favored nation (MFN) Non-MFN4

12/31/97 12/31/97

Unwrought (in coils) 7601.10.3000 2.6% ad val. 18.5% ad val.

Unwrought (other than

aluminum alloys) 7601.10.6000 Free 11.0% ad val.

Waste and scrap 7602.00.0000 Free Free.

Depletion Allowance: None.1

Government Stockpile:

Stockpile Status—9-30-975

Uncommitted Committed Authorized Disposal plan Disposals

Material inventory inventory for disposal FY 1997 FY 1997

Aluminum 9 5 9 57 48

Prepared by Patricia A. Plunkert, (703) 648-4979 [Fax: (703) 648-7757].
19

ALUMINUM

Events, Trends, and Issues: Domestic primary aluminum production remained relatively stable in 1997. Domestic

smelters continued to operate at about 85% of engineered or rated capacity.

U.S. imports for consumption increased in 1997, reversing the downward trend that began in 1995. Although Russia

remained second only to Canada as a major shipper of aluminum materials to the United States, the level of its

shipments has declined over the last few years from the record high level reached in 1994 and appears to have

stabilized at about 400,000 tons of aluminum per year.

The 1997 Defense Authorization Act authorized the Defense Logistics Agency to sell the entire inventory of 57,045 tons

(62,882 short tons) of aluminum metal from the National Defense Stockpile. Sales began on April 15, and, by the end

of October, the entire inventory had been sold.

The price of primary aluminum ingot in the United States fluctuated within the range of 75 to 80 cents per pound during

most of the year. In January, the average monthly U.S. market price for primary ingot quoted by Platt’s Metals Week

was 76.1 cents per pound; by August the price had risen to 80.1 cents per pound. However, there were indications that

the price would turn downward again in September. Prices on the London Metal Exchange (LME) followed the trend of

the U.S. market prices. The monthly average LME cash price for August was 77.6 cents per pound. Prices in the

aluminum scrap markets paralleled the general trend of primary ingot prices. The buying price for aluminum used

beverage can scrap, as quoted by American Metal Market, increased from a 53- to 54-cent-per-pound range in January

to a 59- to 60-cent-per-pound range at the end of August.

World production increased as producers continued to bring back on-stream primary capacity that had been temporarily

idled and to start-up new capacity expansions. Inventories of metal held by producers, as reported by the International

Primary Aluminium Institute, declined slightly during the first half of 1997. Inventories of metal held by the LME also

declined during the same period before beginning to increase in August. 

World Smelter Production and Capacity:

Production Yearend capacity

1996 1997 1996 1997 e e

United States 3,577 3,600 4,200 4,200

Australia 1,372 1,390 1,450 1,570

Brazil 1,190 1,200 1,210 1,220

Canada 2,282 2,300 2,280 2,290

China 1,780 1,800 1,750 1,800

France 365 400 430 430

Norway 874 880 924 953

Russia 2,800 2,880 2,970 2,970

South Africa 620 670 578 666

Venezuela 600 630 635 638

Other countries 5,210 5,400 6,450 6,650

 World total (rounded) 20,700 21,200 22,900 23,400

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.

Estimated. e

See also Bauxite. 1

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

Defined as imports - exports + adjustments for Government and industry stock changes. 3

See Appendix B. 4

See Appendix C for definitions. 5

U.S. Geological Survey, Mineral Commodity Summaries, January 1998