Rusal has paid about 45% so far of a $35 million bauxite production levy that it owes Kingston.

Supplies from China fell late last year, igniting prices in Europe and focusing the EU on efforts to secure home-grown supplies.

Fitch notes strong downside risks as strict Chinese lockdowns pose a strong threat to demand for the metal in 2022.

China has already shipped out unusually large volumes of metals from aluminum, copper to zinc in March.

Aluminium inventories in London Metal Exchange warehouses, already at their lowest in nearly 17 years, are likely to fall further as more metal leaves the LME system and heads for Europe, where supplies are scarce.

The current highly unusual flow of Chinese unwrought aluminum to Europe attests to the extreme dislocation in global supply chains, writes Andy Home.

“Overall in the short term, industrial metals will still remain under heavy pressure,” said the ING Bank.