Aluminum Production
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 323 aluminum processors in the US produce aluminum and aluminum alloys from bauxite and aluminum scrap. Products include aluminum ingots, slabs, sheets, plates, foils, bars, and extruded shapes. Primary production is when alumina (aluminum oxide) is smelted to create pure aluminum metal. Secondary production is the smelting of recycled aluminum scrap to create aluminum that can be used again.
Volatile Product Prices
Aluminum prices vary with global supply and demand and can be volatile.
Energy Intensive
Aluminum production consumes high amounts of electricity, natural gas, and fuel oil.
Industry size & Structure
The average aluminum producer employs about 177 workers and generates about $128.5 million annually.
- The aluminum production industry consists of about 323 companies that employ 57,300 workers and generate $41.5 billion annually.
- The 21 primary aluminum producers in the US are dominated by two companies, Alcoa and Century Aluminum.
- There are about 60 secondary aluminum production facilities in the US.
- About 50 companies produce aluminum products, such as sheets, plates, bars, foils, and extruded shapes.
Industry Forecast
Aluminum Production Industry Growth
Recent Developments
Jan 18, 2025 - Wages and Profits Rising
- According to the latest US Bureau of Labor Statistics data, the producer price index for aluminum producers rose 7.3% in November compared to a year ago after falling 1.6% in the previous November-versus-November annual comparison. Employment by the industry dipped 1.3% year over year in October, while in November average wages at primary metals manufacturers rose 2.7% YoY to a new high of $29.84 per hour, BLS data show. After-tax profits for nonferrous metals companies, which include aluminum producers, jumped 34.7% YoY in Q3 but fell 14.6% versus Q2, according to the Census Bureau. Following a sharp decline in 2023, the global price of aluminum rose 9.7% in 2024, and is forecast to rise 1% this year and 4% in 2026, according to the World Bank.
- An alumina shortage and shipping disruptions that drove up the global price of aluminum last year, are expected to ease in 2025, according to Metal.com. (Aluminum metal is produced by refining alumina oxide from bauxite into alumina.) Per a Shanghai Metal Market (SMM) report, alumina supply growth is likely to outpace demand this year, creating a surplus that could reduce pressure on operating costs for aluminum producers. Based on SMM’s analysis, the global metallurgical-grade alumina (MGA) surplus is expected to reach approximately 2.6 million tons in 2025, a year-over-year increase of about 2 million tons. Primary aluminum may shift to a narrow surplus amid limited capacity growth and steady demand, per SMM. Regional markets are expected to vary, with the US remaining resilient while Europe faces supply risks.
- A new rule proposed by the National Highway Traffic Safety Administration would establish a new Federal Motor Vehicle Safety Standard requiring that new passenger vehicles be designed to reduce fatalities and serious injuries among pedestrians struck by vehicles, Aluminum Week reported in September. The proposed rule would apply to passenger vehicles with a gross vehicle weight rating of 10,000 pounds or less, which includes multipurpose passenger vehicles like trucks, SUVs, crossovers, and vans. A recent article in The Economist stressed the urgent need to enhance passenger safety, noting that heavier SUVs and trucks contribute disproportionately to road fatalities among occupants of smaller vehicles. By prioritizing lighter materials such as aluminum, the US auto industry can improve safety outcomes while reducing the overall danger larger vehicles pose on the road. The Economist magazine noted that US roads are nearly twice as dangerous as the rich-world average.
- Domestic demand for aluminum rebounded in the first half of 2024, rising 5.2% year over year through the first half of the year, driven by rising sheet and plate shipments, according to preliminary estimates in the latest Aluminum Situation report from The Aluminum Association. Domestic demand for aluminum declined in 2023 versus 2022 from 27.2 billion pounds to 26.3 billion pounds, according to Aluminum Association data. Aluminum demand in the US and Canada (shipments by domestic producers plus imports) totaled an estimated 14.1 billion pounds through the first half of 2024, up 5.2% over last year’s first half total of 13.4 billion pounds. In total, semi-fabricated – or “mill” – product demand remained largely steady year-over-year through Q2, while sheet and plate demand rose 7.5% YoY through Q2. However, foil, extruded products, and electrical markets showed declines. Aluminum exports (excluding scrap) are up 25.6% year to date, while imported aluminum and aluminum products to the US and Canada decreased 14% over the same period.
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