Status and Outlook for the Aluminum Industry

Abstract

1979 turned out to be very special for aluminum. The year established the industry as a solid profitmaker and confirmed that the aluminum supply/demand situation will be favorable for many years to come. Primary production in the U.S. was about 5 million tons; secondary recovery was around 1.75 million tons. U.S. consumption for the year finished at 7.3 million tons, up 1.3% from 1978. The domestic aluminum market was very strong during the first nine months of the year. The slowdown in the economy which hit the automotive and housing markets very hard in the fourth quarter cooled off aluminum demand toward the end of the year. The automotive industry used more aluminum in 1979 than ever before. In the can market, aluminum continued to gain against steel. Although small by comparison with the automotive, building, and packaging markets, aluminum consumption in the aerospace industry has grown 35% per year for the last couple of years, to 3.5% of total aluminum consumption. World primary production (excluding USSR, Eastern Europe, North Korea, and China) was around 13 million tons, up 2.8% from 1978. Shipments of primary aluminum were about 14 million tons, up 4.5% from last year.