Asian hot-rolled coil market opened the week of Sept. 1 on a weak note, with mills attributing slow export sales from China to a lack of price competitiveness.

Platts assessed SS400 HRC of 3 mm thickness at $470/mt FOB China on Sept. 1, down $3/mt from Aug. 29. The same grade was assessed at $481/mt CFR Southeast Asia, down $3/mt over the same period.

Export offers trended down Sept. 1, at $470-$474/mt FOB China, down by $5-$6/mt from the previous week.

Market sources indicated that many factors could have led to the softness of market, including increasing steel inventories domestically and slow export sales.

“Export business won’t pick up, unless Chinese prices drop further,” said an eastern Chinese trader, adding that offers from some Asian suppliers have been at similar levels to those of the Chinese.

Meanwhile, there is some market speculation that coke prices may undergo another two to three rounds of price cuts after China’s military parade Sept. 3. So the expected price moves of raw materials weighed in market sentiments, according to market sources.

However, overseas buyers cut down their bid levels in tandem with downward corrections in the futures, with indicative bids heard at below $470/mt FOB China.

The most actively traded October HRC contract on the Shanghai Futures Exchange closed at Yuan 3,303/mt on Sept. 1, down Yuan 43/mt, or 1.3% day over day.

Platts assessed the spot price of Q235B 5.75 mm HRC at Yuan 3,350/mt ($474/mt) ex-stock Shanghai on Sept. 1, including value added tax, down Yuan 50/mt from Aug. 29.

Generally, market activities were thin, with many mills and traders holding off on updating offers, while Vietnam observed National Day holidays Sept. 1-2.

Meanwhile, Indonesian offers were heard unchanged at $490/mt FOB Morowali. Indonesian coils have been selling well to the EU, especially Italy. With summer vacations ending Sept. 3-4, more buying activities may resume in the EU, with buyers stocking up before the Carbon Border Adjustment Mechanism takes effect in 2026.