I’ll See Your Chip Shortage And Raise You An Aluminum Shortage

If you think manufacturers were screaming about the Chip shortage, you ain’t seen nothing yet.

A lack of Aluminum will shut down THOUSANDS of businesses.

Not slow down, completely stop.

First and foremost, the Automobile industry.

The Parts industry, The Truck building industry, Electrical components, The canning and bottling industry, any and all businesses that rely on Aluminum or parts made from it.

Stopped dead in their tracks, World Wide.

This article only highlights the American point of view. I read somewhere the other day where some countries are going to completely run out of Magnesium, NEXT MONTH.

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

H/t Bloomberg

By Joe Deaux

There’s a widening scarcity of essential raw materials for aluminum used to make automobiles and building supplies that threatens to worsen a supply squeeze that already has pushed U.S. prices close to all-time highs. 

Matalco Inc., the largest U.S. producer of aluminum billet, is warning customers it may curtail output and ration deliveries as soon as next year amid a magnesium shortage. Magnesium is used to harden aluminum alloys.

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 Corp., the largest U.S. maker of raw aluminum, also voiced concerns about magnesium scarcity and has been seeing so-called force majeure declarations by some suppliers. Force-majeure clauses are embedded in sales contracts to allow suppliers to suspend deliveries owing to circumstances outside of their control.

“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.”

I’ll give you three guesses as to who in the world has the most Magnesium reserves and who supplies a lot of the industrial realm.

Ready?

You knew that was coming, right?

Three of our Best Buds in the whole world.

Lemme tell ya, if you think things are fucked up now, just wait until they shut down the Aluminum smelters.

Are we having fun yet?

The best part is that you can get the stuff from sea water.

Do you think for one second anyone has a running plant to do that here?

That would be, no.

This place be FUBAR.

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4640cookie-checkI’ll See Your Chip Shortage And Raise You An Aluminum Shortage

14 Comments

  1. Ping from Gregory Spangler:
    Phil,

    The company I work for extrudes aluminum, we received the letter you noted from Matalco. The industry is already in a tight supply situation, due to labor shortages, this will definitely cause issues

  2. Ping from Sunday Linkage « Bacon Time !!!!!!:
    […] I’ll See Your Chip Shortage And Raise You An Aluminum Shortage […]

  3. Ping from CederqX:

    Go back to wrought iron… How fast can a Los Angles attack sub made out of pig iron go, when chased by N Korean diesel sub in China Territorial waters?  That is for you algebra and trig and calc nerds…

  4. Ping from ken smith:

    Switching to wrought iron will make a case of beer really heavy.  that’ll get you in shape.—ken

  5. Ping from Exile1981:
    Magnesium isalso used for speciality steels.

    I was reading the other day that german aluminium producers will be shut down by christmas.

  6. Ping from enn ess:
    Ya’ll better brush up on James Kunstler fictional series “World Made By Hand”. We are fast approaching that same or very similar scenario. With a healthy dose of his book “The Long Emergency” thrown in just to keep things interesting.

    And you thought your grandparents were kidding about how things used to be. We are about to learn they weren’t shitting you one bit, the hard way. And ain’t none of us prepared for this catastrophe.

    • Ping from CederqX:

      By all accounts grandparents were better prepared for what hit them, then what is gonna hit us. We have had it too lazy, most don’t know how to garden and save seeds, most do not know how to hunt and then process that what you shot or trapped or knifed, caught. Most don’t have any idea of basic carpentry or shelter building. Most, and I repeat MOST do not have any common sense or critical thinking skills and discipline.

      • Ping from Oldfart:
        You’re right, nobody knows how to do a lot of things they’re going to have to deal with in the near future. I remember those days:

        The Model B Ford was the car everyone wanted – We had a Nash.  A few farmers had tractors – most still had horses.  My Grandfather was a carpenter so he started houses for the new neighbors and let them finish the walls and roofs.  Mom, Dad and four-year old me lived in a tent until the roof was complete, then we moved into the house (in a rain storm!)  Dad and my uncles used a hand-auger to drill wells to 40-50 feet.

        Dad was working as a longshoreman and every night he drove home with a collection of 2×4 and 1×8 scrap lumber tied down on the flat top of the Nash.  One afternoon a government truck dropped off  a pre-cast concrete base and a box of semi-finished wooden parts for a new single-seater outhouse.

        All this and more happened under the grey cloud of another distant war in Europe.  Then came Pearl Harbor.

        I was seven years old then and scared to death.  But I did my part:  At nine years I drove a flat-bed truck loaded with hay for my neighbor since his son was nineteen and already in the army.  I found scrap-lumber and old tools and repaired a storm-damaged roof  for a lady whose husband was “away.”  He never came back and she moved away too.

        Now I ‘know’ how to do a lot of things but I can’t do them.  We were driving in the hills awhile back when a small herd of elk trotted across the road and down a hill.  We stopped to let them all clear the road and I considered walking over to the crest of the hill and watching them a bit more.  I considered it but I stayed in the car.  the gentle hillside they traversed in less than a minute would take me a half-hour or more.

        Remember this little story the next time you see a young man doing something bass ackwards and then remember some of the old farts who showed you how to do the job right.  In the right light some of those old farts may look like your Grandpa or Dad or even the farmer who started his old truck every day by towing it with a Clydesdale.

        • Ping from CederqX:

          Oldfart, I hope you come back and read this. Don’t be as critical of us that have espoused these sentiments. When what I have learned from the old people and applied it to my own life and learned from them. I have tried to carry on my knowledge and experience to the young people of today and they just don’t give a shit, they don’t want to learn and I say for most of them, sure, there is a small cadre of them that are natural tool and gear heads and want to learn, but not enough. They are pampered and have their damn noses buried in idiot phones thinking that you tube will teach them all they need to know. It won’t. When a young person sez’  “yeah right boomer” Fuck ’em let them starve. Oh and I am 63, an old fart too. A lot of us on Phil’s site would love to teach and the interest is just not there.

  7. Ping from Mikey:
    Lots of aircraft wheels are made of magnesium or magnesium alluminum alloys.  Aircraft wheels are subject to a lot more breakage, cracking, and damage than car wheels that last forever.  When we run out of aircraft wheels we’ll quickly be out of functioning aircraft and everything is going to get real local.

  8. Ping from Bear Claw Chris Lapp:
    This douche gives conflicting headlines here. China controls a lot of the mining in the world but we will never hear about it in the media. Welcome again to clown world. Thanks slick willie and hitlary for selling our rare earth and uranium capabilities while on your watch.

  9. Ping from Bear Claw Chris Lapp:
    https://www.bloomberg.com/authors/AR-UdU62fNE/joe-deaux

    Sorry left out the link

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