Due to the imbalance between the supply and demand of aluminum, the aluminum price has reached record highs recently. The shortage of magnesium and silicon, the key alloy elements in the production of aluminum billets, will further tighten the aluminum supply.

Matalco Inc., the largest aluminum billet producer in the US, warned that the short supply of magnesium will potentially impact aluminum billet production in 2022. Matalco might reduce its output and limit deliveries as early as next year, which meant that aluminum prices may rise further in the future.

Besides, Alcoa Corp., the largest primary aluminum producer in the US, also expressed its concerns about the shortage of magnesium. Both companies pointed out that the supply of silicon is also insufficient, and silicon prices have hiked by 300% within two months.