New obstacle to global economic growth revealed

A metal made from the second-most abundant element on Earth has become scarce, threatening everything from car parts to computer chips and throwing up another hurdle for the world economy, Report informs referring to Bloomberg.

The shortage in silicon metal, sparked by a production cut in China, has sent prices up 300 percent in less than two months. It’s the latest in a litany of disruptions, from snarled supply chains to a power crunch, that are creating a destructive mix for companies and consumers.

The worsening situation has forced some companies to declare force majeure. Norwegian chemicals manufacturer Elkem ASA said it and several other companies making silicone-based products suspended some sales due to the shortage.

The silicon issue also captures how the global energy crisis is cascading through economies in multiple ways. The slashing of output in China, far and away the world’s biggest silicon producer, is the result of efforts to reduce power consumption.