Throughout this year, aluminum prices continuously grew and in October 2021 reached $2934 per tonne, gaining 62% compared to October 2020. China's output has decreased due to restrictions on energy usage and halted production at a 300K-ton capacity factory in Yunnan province. Driven by increasing demand against expected supply limitations, the average yearly price in 2022 is projected to rise by 6% because of a high demand from the automotive industry, increased prices of energy resources, and a supply shortage arising from China diminishing production to decrease СО2 emissions.
As China limits the output, it must expand imports. From January through July 2021, China purchased 1.5M tonnes of aluminum from abroad which was 52% more than the same period in 2020. In monetary terms, throughout seven months, imports surpassed $3.3B, over twice the amount during the same period in 2020 ($1.6B). In November 2021, an explosion occurred at an aluminum factory in Yunnan province. This caused a complete stop in production for the 300K-ton-capacity factory and further exacerbated the supply shortage on the market.