|Last Quarterly Update:||10/17/2016|
|SIC Codes:||3334, 3341, 3353, 3354, 3355|
|Industry Overview||Trends & Challenges||Industry Forecast|
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Companies in this industry process and manufacture alumina, aluminum and aluminum products. Major companies include US-based Alcoa, Aleris, and Noranda Aluminum, along with Aluminum Corporation of China; Hindalco Industries (India); Norsk Hydro (Norway); Rio Tinto (UK and Australia); and RUSAL (Russia).
Worldwide production of primary aluminum totals more than 50 million metric tons per year, about 1.7 million of which is produced in the US. Aluminum demand is expected to grow 5.8 percent annually through 2017, according to Freedonia Group. The largest aluminum producers are China, Russia, and Canada.
The US aluminum production industry includes about 400 companies with combined annual revenue of about $40 billion.
Demand comes largely from manufacturers of durable goods such as motor vehicles, aircraft, food packaging containers, building and construction, and electrical generators. The profitability of individual companies depends on efficient operations, because aluminum products are commodities sold based on price. Big companies have economies of scale in production. Accordingly, most producers of secondary products buy raw metal from the large producers. Small companies can compete by serving regional markets or producing specialty products. The US industry is highly concentrated: the 50 largest companies generate about 85% of revenue.
Imports make up about 30% of the US aluminum market. Canada is the largest supplier to the US, followed by China, Russia, and the United Arab Emirates. Aluminum exports, mainly to Canada and Mexico, account for about ...
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