Competitiveness of the U.S. Minerals and Metals Industry (1990) / Chapter Skim
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2. Supply, Demand, and Competitiveness
2. Supply, Demand, and Competitiveness
Pages 26-55
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From page 26... ...
The producers of copper, lead, and zinc, on the other hand, concentrate on the mining of ore and the production of metal for sale in commodity markets. The steel industry is more oriented toward the processing of iron ore and scrap into steel alloys but not to the degree of specialization found in the aluminum industry.
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From page 27... ...
Copper mining produces substantial amounts of gold, silver, and molybdenum as coproducts; about 5 percent of all domestic gold production in 1988 was recovered through processing copper and other base metals.
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From page 28... ...
Lead Zinc Mine Production Metal Production L - Oceania FIGURE 2-1 World distribution of mine output, metal production, and consumption.
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From page 29... ...
The steel industry metals, often referred to as ferroalloys- manganese, chromium, cobalt, molybdenum, nickel, tungsten, vanadium, and columbium are those that are commonly combined with steel to make alloys having special properties as well as being used in their unalloyed metallic form. Another category consists of the light metals aluminum, lithium, mag
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From page 30... ...
TRENDS IN MINERAL AND METAL PRODUCTION Aluminum Aluminum is produced in a two-stage process: the raw ore, bauxite, is converted into alumina, the principal oxide of aluminum, which is then smelted to produce aluminum metal. The two stages are independent and can therefore be located at different sites.
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From page 31... ...
The U.S. aluminum industry will likely remain strong because it is vertically integrated and can combine investment in overseas mines and processing facilities with domestic alloy production and production of semifabricated products.
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From page 32... ...
Decolonialization, nationalism, and Third World development programs have all contributed to the expansion of capacity in developing countries. The domestic copper industry operates with two distinct disadvantages: low ore grades and high labor costs.
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From page 34... ...
As a result, energy and labor costs in the domestic lead industry can be as low per pound of lead as they are in other producing countries; the relative simplicity of mining, processing, and smelting provides an advantage to offset the higher grade but mineralogically more complex ores of foreign producers. Thus, the industry can compete with foreign producers, at least in the domestic market where foreign producers must also face shipping costs.
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From page 35... ...
Deposits with high contents of zinc and other metals, like the Red Dog deposit in Alaska, could significantly change the apparent competitive status of the domestic zinc mining industry, even though the concentrates may go to foreign smelters. TRENDS IN METALS DEMAND Current Status of Materials Demand Near-term projections of demand for metals can be derived from current demand patterns and from projections for growth of major metal-consuming industries.
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From page 36... ...
. years for the Western industrialized countries Near-Term Trends in Materials Consumption Future demand for metals will be strongly affected by the growth of the economy as a whole.
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From page 37... ...
2.0— CL 3.5 3.0— 1.5— 1.0— 0.5 0.0— ~ 1 _ ~ ~ ~ 1 _ ~ ~ N1 1 ~ ~ ~ ~ ~ ~ ~x ~ ~ 1 ~ ~ 1 =~ ~ ~ NN =~ ~ ~ - ~ 1 ~ ~~ ~ ~ ~~ m ~ ~ ~1 1 ~1 ~ . ~ 1: I ~ I L Lee I 1 98~90 Developing Countries Ail Industrialized Countries 1990 - 95 1~ Centrally Planned Economies 1~1 World FIGURE 2-4 Projected GNP growth rates, 1985-1995.
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From page 38... ...
The copper industry also is striving to develop manufacturing processes that will provide performance and economic advantages over current aluminum designs of automobile radiators. The future demand for metals by the automotive industry will continue to reflect the traditional criteria of performance, cost, and reliability.
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From page 39... ...
~ , ............. 1 1 1 1 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 YEAR FIGURE 2-6 Automotive materials usage (base metals)
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From page 40... ...
Pictured is an aluminum radiator produced by Ford Motor Company. (Courtesy Ford Motor Company Research Staff.)
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From page 41... ...
improving the quality and reliability of finished parts. The lower cost of casting and forging large complex shapes in single stages will continue to give an advantage to metals for complex shapes that must be mass produced, at least until performance requirements necessitate the use of special coatings or anisotropic materials, such as particulate-reinforced aluminums.
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From page 42... ...
Building and construction account for 50 percent of zinc metal consumption, 42 percent of copper, and 35 percent of iron and steel but less than 25 percent of lead and only a small percentage of aluminum. Demand in this sector could change in the future due to three factors: changes in the construction rate, changes in the materials used, and/or changes in the mix of structures and facilities constructed.
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From page 43... ...
. 1rlalum, osmium Gold Silver Silicon Cadmium Gallium Germanium Mercury Selenium Tellurium Tantalum Indium Electrical wiring Magnetic data-storage devices Electrical contacts, multilayer capacitors, conductive and resistive films, crucibles for production of electronic materials and devices, dental materials Electroplating and wiring in integrated circuits and electronic devices Wiring and capacitors Semiconductor devices and photovoltaic cells Batteries Gallium-arsenide electro-optical devices, integrated circuits, and possibly solar energy conversion devices Infrared optical devices, fiber optics, windows for transmission of infrared light Batteries Photoreceptors in electrophotographic copiers Infrared sensing materials (mercury-cadmium-tellurium compounds)
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From page 44... ...
However, data on U.S. market share and net imports and exports provide a gauge of the revealed comparative advantage held by segments of the industry.
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From page 45... ...
About half of the current deficit is attributable to net imports of iron and steel. The domestic industry is a net exporter of only five commodity metals: gold, magnesium, molybdenum, metal scrap, and recently aluminum.
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From page 46... ...
MINERALS AND METALS INDUSTRY MATERIALS COMPETITI1:) N lN THE MANUFACTURING SECTOR The design engineer in the manufacturing industries must consider a new material and its associated fabrication process—in the context of replacing a material/process combination that is already in production for a given component.
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From page 47... ...
This is the most difficult situation of all, since it entails the greatest combination of uncertainties. Based on the above analysis, the following conclusions are drawn regarding changes in materials use in the automobile industry: Radical changes in materials and manufacturing technology are unlikely due to the huge investment in existing materials and processes and the requirement that investment in new technology be profitable in the fairly near term.
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From page 48... ...
The domestic aluminum industry has adjusted to its changing economic circumstances sufficiently well that its competitive decline is now only gradual. Overall domestic capacity, which had declined steadily from 1983 to 1987, stabilized in 1988 when primary aluminum metal output rose by 17 percent, allowing exports to increase in 1989.
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From page 49... ...
For both lead and zinc the outlook Manganese Bauxite and Alumina Platinum Group Metals Cobalt Chromium Tungsten Tin Nickel Zinc Cadmium Silicon Iron Ore Copper Lead Manganese Titanium Aluminum Molybdenum E indicates net export ~ Do 20 E 1 1 1 1 86 1 ~ 61 i 1 1 . 1 1 1 1 1 0 20 40 60 80 100 PERCENT FIGURE 2-8 Net import reliance for selected minerals and metals, 1989.
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From page 50... ...
Net Import Reliance for Selected Minerals and Metals as a Percentage of Consumption, 1983-1989 1983 1984 1985 1986 1987 1988 1989 Aluminum 17 7 16 26 23 7 E Bauxite 96 96 96 96 96 97 97 Chromium 76 80 75 79 76 77 79 Cobalt 95 95 94 85 86 86 86 Copper 19 23 28 27 26 13 9 Iron ore 37 19 21 33 22 18 20 Iron and steel 16 23 22 21 19 17 13 Lead 20 20 12 20 17 13 8 Magnesium E E E E E E E Manganese 99 98 100 100 100 100 100 Molybdenum 7 E E E E E E Nickel 75 69 71 73 75 68 65 Platinum Group 89 89 92 90 94 95 94 Metals Silicon 31 18 25 36 33 29 23 Tin 73 74 72 74 74 78 73 Tungsten 52 70 68 70 79 76 73 Zinc 65 68 70 73 71 69 61 Notes: Net import reliance = imports - exports + adjustments for government and industry stock changes. Apparent consumption = U.S.
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From page 51... ...
One of the most significant of these is the lack of an adequate science base to support mining and processing technology development. It is not that the United States lags other nations in the relevant science and technology, but rather that the domestic industry must rely more heavily on technology to maintain its competitiveness.
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From page 52... ...
Minerals and Metals Industry The domestic minerals and metals industry has had to cope with a number of factors that work to its disadvantage relative to foreign producers and processors. Among these are: .
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From page 53... ...
industry to a greater degree than other countries include high labor costs, low ore grades, and more stringent environmental regulation. These factors therefore provide targets of opportunity for research and development (R&D)
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From page 54... ...
In aviation, for example, aluminum producers devote funds and personnel to efforts to develop alloys and metal processing techniques that meet the requirements of the next generation of aircraft. Data Analysis for Materials Planning Clearly, changes in technology will produce changes in the demand for raw materials and for intermediate products, including alloys, metal powders, and other metal products.
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From page 55... ...
Such research may be deserving of support on its own merits in addition to, but not in place of, support for minerals and metals research and the development of improved manufacturing technology.
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