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As power restrictions were loosened, China's aluminum smelters ramped up production. According to record, compared with last year, China’s primary aluminum production increased by 5.6% to a monthly record high at 3.43 million tons in July.

In recent months, China, where the world’s top metals producer and consumer, has seen a gradual warm-up in smelter activity and some new capacity added in regions like Yunnan and Gansu provinces.

However, last year Yunnan province and other southern areas restricted power supply due to encountering a severe drought and limitation aimed to reduce pollution, the companies in these areas could only cut production.

Due to aluminum's energy-intensive characteristics, the industry was cutting capacity due to surging costs of electricity and energy, especially in Europe.