US Aluminium Companies Warns Possible Output Reductions Next Year

Published: Nov 16, 2021 15:16 (GMT+8)
Supply constraints caused by soaring energy prices have almost pushed US aluminium prices to record highs, while increasing shortages of key raw materials such as magnesium and silicon metal have further exacerbated the tight supply situation of aluminium.

SHANGHAI, Nov 16 - Supply constraints caused by soaring energy prices have almost pushed US aluminium prices to record highs, while increasing shortages of key raw materials such as magnesium and silicon metal have further exacerbated the tight supply situation of aluminium.

Matalco Inc., the largest U.S. producer of aluminum billet, warned customers on Wednesday that it could cut production and make limited deliveries as early as next year because of a magnesium shortage, Bloomberg reported.

Alcoa Corp., the largest producer of primary aluminium in the US, has also expressed concern about the magnesium shortage, and some suppliers have been issuing so-called force majeure statements. Force majeure clauses are attached to sales contracts, allowing suppliers to suspend deliveries due to circumstances beyond their control.

Matalco and Alcoa both pointed out that silicon was also in short supply, which led to a 300% increase in silicon metal prices in less than two months.

Magnesium and silicon metal are both essential alloying elements in the production of aluminium billets, and the shortage of these materials will exacerbate the tight supply of aluminium, which could drive aluminium prices further up.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Flash News] South32 Revised Q4 '26 CIF MJP Premium Offer at US$265/mt
5 hours ago
[SMM Flash News] South32 Revised Q4 '26 CIF MJP Premium Offer at US$265/mt
Read More
[SMM Flash News] South32 Revised Q4 '26 CIF MJP Premium Offer at US$265/mt
[SMM Flash News] South32 Revised Q4 '26 CIF MJP Premium Offer at US$265/mt
Market sources report: South32 revised Q4 '26 CIF MJP Premium Offer at US$265/mt, down from US$325/mt. Validity 5 October 2026.
5 hours ago
India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside
22 hours ago
India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside
Read More
India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside
India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside
India ADC 12 prices remained relatively resilient despite a 1.2% decline in LME aluminium 3-month prices between September 24 and 30.
22 hours ago
Rio Tinto Secures Bell Bay Smelter Operations Through End-2031
22 hours ago
Rio Tinto Secures Bell Bay Smelter Operations Through End-2031
Read More
Rio Tinto Secures Bell Bay Smelter Operations Through End-2031
Rio Tinto Secures Bell Bay Smelter Operations Through End-2031
Rio Tinto announced on October 1 that it had reached agreements with the Tasmanian Government, the Australian Commonwealth Government and Hydro Tasmania to extend electricity supply to the Bell Bay aluminium smelter through the end of 2031. The two governments will also provide a combined A$200 million support package over five years, contributing A$100 million each. Commercial terms of the power agreement were not disclosed. Bell Bay produces around 190,000 tonnes of primary aluminium annually, while its existing electricity contract was due to expire at the end of 2026. The agreement removes the smelter’s immediate operational uncertainty. Bell Bay is the third major Australian aluminium smelter to receive government-backed support in 2026, following Boyne and Tomago, highlighting continued pressure from high electricity costs and international competition.
22 hours ago