High electricity prices in Europe have pushed up production costs in the steel industry. Aluminum is widely applied in the energy, construction, and packaging industries, among which the Western European market accounts for about 10% of global consumption, and the global consumption was expected to be about 70 million tons this year.

A research report mentioned that the aluminum supply is still unstable, and about 1.5 million to 2 million tons of smelted aluminum production in Europe and Russia will be at risk of a shutdown in the next 3 to 12 months.

On the other hand, China's aluminum market has been weak due to supply growth outpacing actual demand and the epidemic lockdown policy.