MANUFACTURED ABRASIVES (Fused aluminum oxide and silicon carbide) (Data in metric tons, unless noted) Domestic Production and Use: Fused aluminum oxide was produced by four companies in seven plants in the United States and Canada. The production of regular-grade fused aluminum oxide represented utilization of 70% of the rated industry capacity and was valued at about $55 million. Production of high-purity fused aluminum oxide utilized about 89% of rated industry capacity and was valued at about $14 million. Silicon carbide was produced by three companies in four plants in the United States and Canada. U.S. and Canadian production of crude silicon carbide utilized about 81% of rated industry capacity and was valued at about $42 million. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Production, United States and Canada (crude): Fused aluminum oxide, regular 138,000 143,000 132,000 133,000 129,000 Fused aluminum oxide, high-purity 24,500 24,200 21,300 29,200 24,100 Silicon carbide 78,900 84,300 74,900 84,700 W Imports for consumptione/ Fused aluminum oxide 140,000 136,000 158,000 145,000 141,000 Silicon carbide 70,000 89,000 115,000 110,000 136,000 Exports Fused aluminum oxide 11,000 12,000 11,000 13,000 10,000 Silicon carbide 10,000 14,000 17,000 16,000 16,200 Consumption: Apparent Fused aluminum oxide NA NA NA NA NA Silicon carbide NA NA NA NA NA Price, range of value, dollars per ton Fused aluminum oxide, regular 381 395 362 361 353 Fused aluminum oxide, high-purity 619 594 621 557 470 Silicon carbide 500 516 540 531 W Stocks, producer NA NA NA NA NA Employment, mine and mill NA NA NA NA NA Net import reliance1/ as a percent of apparent consumption NA NA NA NA NA Recycling: The U.S. Bureau of Mines estimates that about 39,000 tons of fused aluminum oxide is recycled and that silicon carbide recycling is about 5,000 tons. Import Sources (1991-94): Fused aluminum oxide crude: Canada, 90%; and other, 10%. Fused aluminum oxide grain: Austria, 34%; Canada, 31%; Germany, 6%; Brazil, 5%; and other, 24%. Silicon carbide crude: Canada, 61%; China; 34%, and other, 5%. Silicon carbide grain: Norway, 44%; Germany, 15%; Brazil, 11%; Canada, 7%; and other, 23%. Tariff: Item Number Most favored nation (MFN) Non-MFN2/ 12/31/95 12/31/95 Fused aluminum oxide, crude 2818.10.1000 Free Free. Fused aluminum oxide, grain 2818.10.2000 0.7›/kg 2.2›/kg. Silicon carbide, crude 2849.20.1000 Free Free. Silicon carbide, grain 2849.20.2000 0.7›/kg 2.2›/kg. Depletion Allowance: None. Government Stockpile: Stockpile Status--9-30-95 Uncommitted Committed Authorized Disposals Material inventory inventory for disposal Jan.-Sept. 95 Fused aluminum oxide, crude 196,000 -- 196,000 -- Fused aluminum oxide, grain 33,200 2,010 33,200 2,490 Silicon carbide, crude 25,100 2,880 25,100 4,080 Prepared by Manufactured Abrasives Specialist, (703) 648-7721. MANUFACTURED ABRASIVES Events, Trends, and Issues: The fused aluminum oxide industry appears to have stopped its decline and has stabilized at current production levels. One silicon carbide plant stopped production during 1995. Large volumes of low cost silicon carbide from China, appears to have affected U.S. and Canadian production. World Production Capacity: Fused aluminum oxide capacity Silicon carbide capacity 1994 1995e/ 1994 1995e/ United States and Canada 245,000 245,000 103,000 83,000 Argentina -- -- 6,000 6,000 Australia 100,000 100,000 -- -- Austria 60,000 60,000 -- -- Brazil 96,000 96,000 43,000 43,000 China 300,000 300,000 250,000 250,000 France 45,000 45,000 16,000 16,000 Germany 86,000 86,000 36,000 36,000 India 20,000 20,000 13,000 13,000 Japan 55,000 55,000 90,000 90,000 Mexico -- -- 25,000 25,000 Norway -- -- 80,000 80,000 Venezuela -- -- 20,000 20,000 Other countries 450,000 450,000 250,000 250,000 World total (rounded) 1,500,000 1,500,000 930,000 910,000 World Resources: Domestic resources of raw materials for production of fused aluminum oxide may be limited, but adequate resources are available in the Western Hemisphere. Domestic resources are more than adequate for the production of silicon carbide. Substitutes: Industrial diamond, cubic boron nitride, and other natural and manufactured abrasives can be used in most applications. e/Estimated. NA Not available. W Withheld to avoid disclosing company proprietary data. 1/Defined as imports - exports + adjustments for Government and industry stock changes. 2/See Appendix B. Mineral Commodity Summaries, January 1996