Metals, Primary Nonferrous
SIC 3330
NAICS 331
The nonferrous metals industry fabricates, from crude ores, basic metal products made from materials other than iron or steel. This industry is termed "primary" to distinguish it from so-called secondary producers that remanufacture metals from scrap. Major industry products, in descending order of annual global production by weight, include aluminum, copper, lead, and zinc.
Primary nonferrous metals, which constitute the vast majority of nonferrous metal production, experience markedly different demand and profitability depending on the type of metal, world production capacity, and the health of specific end-use markets. Thus, while an individual metal smelting and refining company may produce several kinds of nonferrous metals, each may be subject to unique market conditions—a tendency that makes generalizations about all nonferrous metals difficult. Aluminum and copper were the two major segments of this industry.
The market for aluminum, the industry's largest product segment, has continued to experience robust demand in the 2000s. World production of aluminum stood at more than 22.5 million metric tons in 2004. According to the Aluminum Association, the transportation sector is the heaviest consumer of aluminum, with 7.5 billion pounds required each year. Although the automobile and aerospace markets continued to be heavy users of aluminum, those markets were leveling out by the mid-2000s. Instead, the commercial and industrial transportation sectors were rising in the demand for aluminum. North America was by far the largest aluminum-producing region, followed by Europe and Asia. Worldwide aluminum production was increasing rapidly, but demand was increasing more rapidly, creating shortages that were expected to last into at least 2006.
Primary copper, the industry's second-largest product by value, hasn't fared as well as aluminum. Copper prices from the mid-1990s to the mid-2000s have proven particularly volatile because of excess supply due to overproduction. Even though demand increased and production declined, by 2002 supply still exceeded demand, although the gap was closing. These conditions were expected to lead to unpredictable copper prices, despite healthy demand in U.S. and European construction and electrical equipment markets, as well as China's booming economy and subsequent increased copper demand. The world's major copper region was the Americas, followed by Asia. Europe was third in copper production.
Leading nonferrous metals (metals that do not contain iron) are aluminum, copper, zinc, and lead. Aluminum, a lightweight, silvery metal, is the most plentiful metallic element in the earth's crust. The metal is sought after because of its numerous unique physical characteristics. Importantly, aluminum weighs less than one-third an equal volume of steel. Besides its high strength-to-weight ratio, aluminum resists corrosion—it becomes covered with a tough, protective layer of aluminum oxide when exposed to air. Additional properties, such as high conductivity and recyclability, make it useful for a multitude of applications ranging from transportation and long-distance power transmission to construction and food and beverage packaging.
Aluminum, while abundant, is difficult to extract in pure form. It occurs naturally as a silicate (a compound containing silicon, oxygen, and other elements) and is often mixed with other minerals such as sodium and potassium. Aluminum is extracted from an ore called bauxite through the Bayer process, a more expensive procedure in comparison to that used to extract iron, copper, and other common metals. The most common refining technique is the Hall-Heroult process. It entails dissolving alumina (aluminum oxide) in fused cryolite (a naturally occurring fluoride), and then decomposing it through electrolysis to a molten metal.
The United States was the largest manufacturer of aluminum in the late 1990s, accounting for approximately 25.0 percent of global output. Other major aluminum-producing nations in 1999 included: the Russian Federation (15.0 percent of global output); Canada (10.0 percent); Australia (6.3 percent); and Brazil (6.2 percent). Major consumers of aluminum in 1992, in descending order of consumption by weight, were the United States, Japan, the Commonwealth of Independent States (CIS), Germany, and China.
Copper, a reddish metal, is the 25th most abundant metallic element. Marketable characteristics include high conductivity, malleability, resistance to corrosion, and beauty. Copper, in fact, is second to silver in conductivity, making it useful in the production of electrical wire and cables. It is also commonly used to make money, cooking utensils, pipes, and architectural ornaments, among other goods. Finally, copper is often mixed with zinc to form brass, or with tin to create bronze. Unlike aluminum, copper is relatively easy to extract and is often found in pure form. Ore containing copper is crushed, washed, melted in a furnace, concentrated, purified, and then cast into shapes for milling into finished products.
Most copper is mined in developing nations and processed into intermediate and final products in developed countries. The exception to that rule is the United States, which is both a major producer and consumer of copper. The United States, in fact, is second in mined copper production (by weight) to Chile, but is the largest producer of refined copper. In 1999 aggregate refined copper production worldwide reached 14.1 million metric tons. Major copper-producing nations in 1999 included Chile, the United States, Japan, China, and the Russian Federation. Leading consumers of refined copper, in descending order of consumption by weight, were the United States, Japan, Germany, and China. These four countries accounted for roughly 50 percent of the global copper market.
Zinc, the twenty-fourth most common element in the earth's crust and the third-largest nonferrous metal industry product, is a bluish-white metal. Although it is brittle, it becomes malleable at temperatures of 120 to 150 degrees Celsius. When exposed to air, the surface of the metal forms a hard film that resists further oxidation. Zinc is soluble in alcohol, acids, and alkalis. Its properties make it ideal for use as a protective coating for other metals. Its primary end use, in fact, is to make galvanized steel. Zinc is also utilized as an alloying agent, particularly with copper to make brass. Zinc is also put to use in pigments, rubber tires, and wood preservatives, among other goods. Zinc is typically extracted from ore through a distillation process that uses an electric furnace to boil the zinc. Another technique involves leaching the zinc from the ore with sulfuric acid.
Global zinc production in 1999 was approximately 8.3 million metric tons, up 19.7 percent from a worldwide output of 6.9 million metric tons in 1990. Major nations involved in zinc production included China (20.1 percent of global output by weight); Canada (9.4 percent); Spain (4.5 percent); Australia (3.9 percent); and Mexico, Belgium, Finland, and the Russian Federation (each with 2-3 percent). The United States is by far the largest consumer of zinc, accounting for about 15 percent of global consumption in 1992. Other leading zinc users, in descending order, were Japan, Germany, Italy, and France. These five countries together represented approximately 40 percent of the world market. In 1998, zinc import demand was greatest in the United States (1.1 billion metric tons); Germany (531 million metric tons); Belgium (337 million metric tons); and Italy and France (241 million metric tons each).
Lead, the fourth most commonly processed nonferrous metal, is the thirty-sixth most often-occurring metallic element and is widely distributed throughout the world. It is malleable, dense, and toxic, as well as a poor conductor of electricity. It is also a metal with relatively low tensile strength. Lead is most commonly used to make storage batteries, but is also utilized in applications such as sheathing for electric cables, pipe and tank lining, and X-ray apparatus. It is also used in the manufacture of paints and pigments. Lead is typically extracted from ore through one of two processes similar to those used to make steel or copper. Important by-products of the processes include sliver, gold, and zinc. The purest grades of lead are obtained refining by through electrolysis.
Global production of lead in 1999 reached 5.69 million metric tons. Some of the richest lead deposits in the world were located in the western United States, although those veins had been significantly depleted by the 1990s. Other high-quality, high-volume lead reserves exist in Australia, Canada, Mexico, Peru, and Serbia. By far, the United States has been the world's largest producer of refined lead, accounting for one-fourth of global output in 1999. Other major producers included China, with 16.6 percent of global production, followed by the United Kingdom, Canada, Mexico, Germany, and Italy, each of which produced 4-6 percent of total output. Nations importing the most lead in 1998, in descending order, were the United Kingdom, United States, Germany, Malaysia, and Korea.
Besides aluminum, copper, lead, and zinc, metals produced in smaller amounts in this industry sector include nickel, tin, molybdenum...
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