HRC prices in Spain have lost some €30-40/tonne ($33.8-45.0/t) since mid-April, but sources in the market note that the bottom could be close, Kallanish hears.

Currently import offers at as low as €450-465/t cif Spain are putting pressure on the market, but local European suppliers are said to have not yet matched this range. Officially mills are trying to resist at levels close to €500/t ex-works base for HRC, with €10-20/t discounts available for large orders.

“The market has gone down, but mills have understood that lowering further prices will not trigger more demand. Purchases are at a minimum in the local market and mills are set to hold their levels, waiting for demand to pick up to push for higher prices,” a source at  major service centre comments.

A trader confirms that some concerns exist in the market, but notes that "... the bottom is close."

Iron ore prices recovered to some extent last week in China, meaning European mills do not have much room for further discounting if they want to maintain their profitability, Kallanish understands.