In spite of aluminum production reduction in Europe and China due to power shortages and buyers choosing not to purchase from Russia, the supply was still sufficient and the demand remained weak, which led to an oversupply in the market.

Michael Widmer, a commodity strategist at Bank of America, said that the current aluminum market is well supplied. Global aluminum consumption was expected to drop by 0.1% to less than 68.6 million tons this year, while the supply will hike by 2.4%. The aluminum market was forecasted to have a surplus of 879,000 tons this year.