For a stunning wake-up call to just how concentrated the complex global supply chain is, 85% of the world’s magnesium production comes from China. Much of it comes from one town in Shaanxi province, Yulin, where the government has curbed output at 70% of all magnesium smelters this year due to energy conservation ahead of the Northern Hemisphere winter.
The article specifically references the automotive industry. But in reality anything that uses aluminum is being affected. In addition magnesium is used in the creation of a variety of metal alloys, not to mention a huge list of medical applications.
That 2nd article also references silicon shortages, which also affect aluminum, as well as a bunch of other things. Like, glass, concrete, electronics (its part of the computer chip shortage problem), medical implants, toothpaste, deodorants…..
Where I work, we are getting force majeure notifications from several of our chemical suppliers that are based in the USA. “Chemical” being an encompassing term that includes adhesives, paints, as well as what lay-people would traditionally term as “chemicals”. All because of the plant shut downs for forced energy savings in certain provinces of China. Not expected to recover until well into 2022 (after starting back up early 2022). Makes building of aerospace parts difficult.
yah, once again, its all connected. Shut down one and screw up a bunch!