US aluminium makers sound alarm over magnesium, silicon shortage

There is a widening scarcity of essential raw materials for aluminium used to make cars and building supplies that threatens to worsen a supply squeeze that has already pushed US prices close to all-time highs.

Matalco, the largest United States producer of aluminium billet, is warning customers it may curtail output and ration deliveries as soon as next year amid a magnesium shortage.

Difficult-to-source supplies of other raw materials and soaring natural gas prices are adding to the challenges, Matalco said in a letter to customers obtained by Bloomberg News.

Alcoa, the largest US maker of raw aluminium, also voiced concerns about magnesium (Mg) scarcity and has been seeing so-called force majeure declarations by some suppliers.