SUPPLY CHAIN WOES - TIRES AND COMPUTER CHIPS

The reason for tire prices to shoot up (and supply to be low) as they have is due to the silicon metal shortage experienced globally. Your question is "WTF? How?"

I know this because I purchase fumed silica (a derivative of silicon metal) and have been facing a raw material shortage for almost a year now - prices have raised 150-400% on fumed silica. I don't think 2022 will be much better. https://news.metal.com/newscontent/101648167/silicon-shortage-may-intensify-in-2022-amid-low-supply/

There's a Chinese company (Hoshine) which produces some 60% of the world's silicon metal but currently we have a withhold release order (WRO) on this company by US Customs (prohibiting any importing of this company's material whether in raw form or if included into another product to make a finished good). US Customs will seize goods, no questions asked. This throws the US at an extreme disadvantage for many imported goods. https://www.cbp.gov/trade/programs-...hold-release-order-frequently-asked-questions

So, silicone, by contrast, is a synthetic polymer made up of silicon, oxygen and other elements, most typically carbon and hydrogen. Silicone is generally a liquid or a flexible, rubberlike plastic, and has a number of useful properties, such as low toxicity and high heat resistance. Not to mention it is a MAIN component in tire manufacturing (makes them flexible and soft).

Also, consider computer chips...elemental silicon is a major player in modern electronics because it's an ideal semiconductor of electricity. When heated into a molten state, silicon can be formed into semi-conductive wafers, to serve as the base for integrated circuits (microchips).

It's a shit-show in this area right now to say the least.

 

Just one of many, many problems! Tough times ahead, no doubt.

 

Yes tired Of this BS. Inflation too... What did you purchase the silica for?

 

WOW!!!!! What a mess!! and Thank You for the info

 

It is a raw material for our manufacturing process.