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2021-10-15

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Aluminum Makers Sound the Alarm About U.S. Magnesium Shortage

(Bloomberg) -- There’s a widening scarcity of essential raw materials for aluminum used to make auto

Aluminum Makers Sound the Alarm About U.S. Magnesium Shortage

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Force-majeure clauses are embedded in sales contracts to allow suppliers to suspend deliveries owing to circumstances outside of their control.\n“In the last several weeks, magnesium availability has dried up and we have not been able to purchase our required Mg units for all of 2022,” Matalco said in the Oct. 13 letter. “The purpose of this note is to provide this advanced warning that, if the scarcity continues (and especially if it becomes worse), Matalco may need to curtail production in 2022, resulting in allocations to our customers.”\nMatalco and Alcoa both noted that silicon also is in short supply. That shortage, sparked by production cuts in China, sent prices up 300% in less than two months. 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