In December 2021, the price of natural gas in Europe hit a new high again, with an increase of more than 16%, and the market is worried that the price of natural gas in Europe will rise further. Energy costs soared, European zinc plants announced production cuts, by news of European high-cost aluminum plants cutting production, boosting aluminum prices in London to rise continuously. Compared with the rise in aluminum prices in the first half of 2021 due to rising raw materials, tight power supply, and the impact of supply and demand mismatches and global inflation, the recent changes in aluminum prices are more affected by the European energy crisis. As the price of aluminum ingots has grown, so has the price of aluminum profiles, and the price of many aluminum products has maintained an upward trend since 2021.

In recent years, the global demand for aluminum has continued to rise, especially in emerging industries such as photovoltaics, new energy vehicles, and rail transit.The demand for various aluminum rails, aluminum accessories, aluminum extrusion products increases.

Whether the scale of production reduction by European aluminum companies can be upgraded depends on whether the gap in natural gas will be further enlarged. Referring to the previous situation of domestic coal prices and electricity in China, if energy prices are allowed to continue to rise, industrial enterprises facing high electricity costs will have to shut down one after another, which will lead to rising inflation and unemployment. In the course of the game, the policy adjustment that may be adopted, energy will face the pressure of correction, and it is also a potential risk for aluminum prices to continue to rise. Considering the impact of unstable supply in Russia, the onset of cold waves, and the interruption of nuclear power, the energy crisis in Europe may continue throughout the winter and into the spring of next year. It is expected that aluminum prices will remain strong in the short term.