18



### ALUMINUM 1

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

Domestic Production and Use : In 2008, 6 companies operated 14 primary aluminum smelters; 4 smelters were temporarily idled and 1 that had been idle since 2000 was dem olished in 2007. Based upon published market prices, the value of primary metal production was $7.9 billion. Aluminum consumption was ce ntered in the East Central United States. Transportation accounted for an estimated 37% of domestic consumption; the remainder was used in packaging, 23%; building, 13%; electrical, 8%; machinery, 8%; consumer durables, 7%; and other, 4%.

Salient Statistics—United States : 2004 2005 2006 2007 2008 e

Production: Primary 2,516 2,481 2,284 2,554 2,640 Secondary (from old scrap) 1,160 1,080 1,260 1,600 1,400 Imports for consumption 4,720 5,330 5,180 4,490 4,300 Exports 1,820 2,370 2,820 2,840 3,800 Consumption, apparent 2 6,060 5,990 5,980 5,110 3,700 Price, ingot, average U.S. market (spot), cents per pound 84.0 91.0 121.4 125.2 132.3

Stocks: Aluminum industry, yearend 1,470 1,430 1,410 1,400 1,300 LME, U.S. warehouses, yearend 3 116 209 228 463 860 Employment, number 4 57,500 58,400 57,300 56,600 55,000 Net import reliance 5 as a percentage of apparent consumption 39 41 31 19 E

Recycling : In 2008, aluminum recovered from purchased scrap was about 3.6 million tons, of which about 60% came from new (manufacturing) scrap and 40% from old scrap (dis carded aluminum products). Aluminum recovered from old scrap was equivalent to about 30% of apparent consumption.

Import Sources (2004-07) : Canada, 55%; Russia, 16%; Brazil, 4%; China, 4%; and other, 21%.

Tariff : Item Number Normal Trade Relations

12-31-08 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.

Events, Trends, and Issues : During the first half of 2008, domestic primary aluminum production increased substantially owing to smelter restarts after new power contracts were obtained by producers in late 2006 and early 2007. However, in the second half of the year, production wa s curtailed at two smelters owing to high electricity prices, power supply issues, and a sharp drop in the price of aluminum that took place in August. Domestic smelters operated at about 72% of rated or engineered capacity.

Prepared by E. Lee Bray [(703) 648-4979, lbray@usgs.gov, fax: (703) 648-7757]19



### ALUMINUM

Net import reliance as a percent of apparent consumption continued a decline that began in 2005, as domestic primary production increased while imports for consumption decreased and exports increase d, resulting in the United States becoming a net exporter of aluminum in 2008. Can ada and Russia accounted for almost three-fourths of total imports. U.S. exports increased by 34% in 2008 compared wi th the amount exported in 2007. China, Canada, Mexico and Taiwan, in descending order, received approxima tely three-fourths of total U.S. exports.

The price of primary aluminum generally rose through July 2008 before declining significantly. In January, the average monthly U.S. market price for primary ingot quoted by Platts Metals Week was $1.136 per pound; it reached a high of $1.426 per pound in July, but in September, the price was $1.192 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 $1.138 per pound.

World primary aluminum production continued to increase as capacity expansions outside the United States were brought onstream. World inventories of metal held by producers , as reported by the International Aluminium Institute, increased through the end of August to about 3.0 million tons from 2.8 million tons at yearend 2007. Inventories of primary aluminum metal held by the LME worldwide increased during the year to 1,380,000 tons at the end of September from 930,000 tons at yearend 2007.

World Smelter Production and Capacity : Production Yearend capacity

2007 2008 e 2007 2008 e

United States 2,554 2,640 3,620 3,620 Australia 1,960 1,960 1,950 1,950

Bahrain 873 870 830 830 Brazil 1,660 1,660 1,700 1,700 Canada 3,090 3,100 3,100 3,100 China 12,600 13,500 14,000 15,000 Germany 550 590 600 600

Iceland 398 790 790 790 India 1,220 1,300 1,500 1,800 Mozambique 564 550 570 570 Norway 1,300 1,100 1,350 1,200 Russia 3,960 4,200 4,400 4,400

South Africa 899 850 900 900 Tajikistan 419 420 515 515
United Arab Emirates, Dubai 890 920 890 950

Venezuela 610 550 625 625

Other countries 4,460 4,700 5,360 5,770 World total (rounded) 38,000 39,700 42,700 44,300

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, vinyl, and wood can substitute for aluminum in construction. Copper can replace aluminum in electrical applications.

e Estimated. E Net exporter.

1 See also Bauxite and Alumina.

2 Domestic primary metal production + recovery from old aluminum scrap + net import reliance. Series revised by removing imported scrap to avoid

double counting.

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 2009