Spain's only smelter that produces primary aluminum billet at risk; European spot premiums fall further while Q3 premiums seen below Q2

San Ciprian at risk as measures to lower its energy cost appear insufficient according to Alcoa. This after the company reviewed the latest draft measures announced by the Spanish government that aim to lower uncompetitive electricity costs. The potential closure of San Ciprian would reduce European primary billet supply by 80 kmton, which equates to about 4% of Western Europe's billet production. Looking ahead, it seems the market is set to see Q3 European billet premiums decline further

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