A Scrap Dealer View of the

Secondary Aluminum Market

Past – Present- Future

2

When I started the scrap business in the 1970’s in Chicago, I had the ability to sell

to all the local aluminum smelters. I would pick the scrap up at the plants and

deliver them directly to the local smelters.

Lets see how long you have been around.

REMEMBER THESE COMPANIES

Vulcan-Oak-Creek-Wisconsin

US Reduction-East Chicago

Hall Aluminum – Chicago Heights

R. Lavin – Chicago

Harco-Chicago

Lissner-Chicago

Batchelder-Chicago

Alreyco-Michigan

Apex- Chicago

Allied Metals- Chicago –The only aluminum smelter still operating in

Chicago

I have noted over the years that Secondary Aluminum Smelters have declined by 27%.

AMAZING FACT, ISN’ T IT.

4

Secondary Producers

(Defunct)

(Total Defunct capacity = 192 million)

Aleris (Wabash Alloys) Tipton, IN (10 million/lbs)

Aleris

Shelbyville, TN (10 million lbs)))

Aluminum Smelting & Refining

Cleveland, OH (15 million lbs)

Arkansas Aluminum

Hot Springs, AR (15 million lbs)

Batchelder - Blasius

Spartanburg, SC (10 million lbs)

Behr Aluminum

Rockford, IL(6 million lbs)

Apex Smelting

Cleveland, OH (12 million lbs)

Standard Alloys

E. Chicago, IN (10 million lbs)

Batchhelder Bailer

Chicago, IL(10 million lbs)

Charles B. Batchelder

Botsford, CT (8 million lbs)

JR Elkins

Brooklyn, NY (8 million lbs)

Rochester Smelting

Rochester, NY (8 million lbs)

R. Lavin

Chicago, IL (5 million lbs)

Proler Trenton, NJ (6 million lbs)

Delta

Milwaukee, WI (6 million lbs)

Gettysburg Smelting

Gettysburg, PA(5 million lbs)

Hall Aluminum

Chicago, IL (5 million lbs)

Donald Carroll Metals

Chicago, IL (5 million lbs)

Harco Aluminum

Chicago , IL 5 million lbs)

Alumet

Trenton, NJ (5 million lbs)

Tri Alloys

Los Angles CA (4 million lbs)

Lebanon Valley Aluminum

Lebanon, PA (3 million lbs)

Noral

Montreal, Que (6 million lbs)

MD Recycling

Midway, TN (4 million lbs)

Lissner Corp

Chicago. IL (5 million lbs)

Harbor

Indiana (2 million lbs)

Vulcan Metals

Oak Creek, Wis (10 million lbs)

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Secondary Producers

(Idled Capacity) Total idled capacity = 136 million

Aleris (Wabash Alloys)

Benton, AR (10 million lbs)

Bellwood, VA (10 million lbs)

Checotah, OK (5 million lbs)

Cleveland, OH (10 million lbs)

Dixon, TN (10 million lbs)

East Chicago, IL (20 million lbs)

Guelph, Ont. (8 million lbs)

Shelbyville, TN (10 millions lbs)

Marietta, PA ( 8 million lbs)

Russellville, AL (10 million lbs)

Syracuse, NY (17 million lbs)

Toledo, OH (8 million lbs)

Aleris

Monterey, MX (10 million lbs)

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Secondary Producers

(Operational)

(Total operating secondary alloy capacity = 376 million)

Beck Aluminum Alloys

Lebanon, PA (5 million lbs)

Aleris (Wabash Alloys - Total 98 million lbs)

Wabash, IN (30 million/lbs)

Steele, AL (10 million lbs)

Mississauga, Ont. (20 million lbs)

Monclova, MX (10 million lbs)

Aleris (Total 70 million lbs)

Coldwater, MI (30 million lbs)

Saginaw, MI (20 million lbs)

Custom Alloys

City of Industry, CA (10 million lbs)

MOST (Total 23 million lbs)

Jackson, TN (7 million lbs)

Troy, MO (16 million lbs)

G&S Metals (Total 22 million lbs)

Wabash, IN (12 million lbs)

Manchester, GA (10 million lbs)

Superior Aluminum

New Haven, IN (20 million lbs)

TST, INC. (Timco)

Fontana, CA & Sweetwater, TX (20 million lbs)

Spectro Alloys

Minneapolis, MN(18 million lbs)

Audubon Metals

Henderson, KY (18 million lbs)

Imperial Smelting

Minerva, OH & Scottsboro, Al ( 12 million lbs)

Bermco

Birmingham, AL (10 million lbs)

Allied Metals

Chicago, IL (10 million lbs)

State Metals

Camden, NJ (8 million lbs)

MCA

Columbus, IN (8 million lbs)

Met-Al

Racine, WI (7 million lbs)

Trialco

Chicago, IL (4 million lbs)

Huron Valley

Belleville, MI (4 million lbs)

Tower Metal Products

Fort Scott, MO (2 million lbs)

Allotech

Sheboygan, WI (2 million lbs)

Transmetco

Huntington, IN (2 million lbs)

Heartland

Elkhart, IN (3 million lbs)

United Wheel

Sweetwater, TN (2 million lbs)

Gulf Coast

Tampa, FL ( 2 million lbs)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Aluminum Scrap 410,609 432,767 481,821 554,682 631,384 1,042,32 1,427,16 1,514,69 1,919,07 1,579,20 1,789,28

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000 U.S Aluminum Scrap Exports 2000-2010

8

Total Aluminum Recovered from Purchased Scrap

10

Why are so many facilities closed or idle?

More shredders producing aluminum scrap that can

not be consumed in the U.S.

More and more aluminum units leaving the country-

Zorba

North American consumers of secondary alloy have

moved overseas or shuttered NA operations

Regional scrap availability has dwindled due to scrap

exports Note – See export graph slide 2000-2010

So What Do You Think The Future Is For The

United States Secondary Aluminum Business?

12

My Guess Is More Of The Same As The Last Decade

Exports Will Continue To Rise