China's imported thermal coal market saw major utilities accelerate tender releases ahead of the upcoming holiday, mostly targeting November-delivery Indonesian low-CV grades. However, bids received eased slightly, reflecting cautious sentiment among traders amid lingering uncertainty over post-holiday demand.

Utilities across southern and eastern China sped up procurement ahead of the National Day and Mid-Autumn Festival holidays, anchoring demand primarily for 3,800 Kcal/kg NAR coal, sources said.

More bids from traders for the popular grade fell further below 430 yuan/t CFR China with VAT, with the lowest level on September 29 hitting 423 yuan/t, according to Sxcoal's tracking data. It nets back to $44.67/t FOB East Kalimantan, lower compared with earlier awarded levels of around $45.8/t. That's even close to the latest awarded Philippines 3,800 Kcal/kg NAR coal cargo at about $44.5/t on September 25.

Several utilities reportedly planned to buy cheaper 3,400 Kcal/kg NAR coal at around 368 yuan/t CFR with VAT, equivalent to around $37.8/t FOB on a Panamax basis.

Bidding levels have softened slightly, but prices may find a floor as there's still plenty of interest from utilities and offers from miners remain firm, said a Fujian-based trader source.

"Rebounded freight rate from East and South Kalimantan to South China is eroding delivered margins and also provides cost support to some extent," he added.

Spot offers from Indonesian miners for Panamax cargoes of 3,800 Kcal/kg NAR coal were held broadly firm at $46-47/t FOB, sources said.

Sentiment among participants was slightly mixed, Sxcoal observed. Several traders warned of potential accelerated downward price corrections after holidays, as coal consumption at power plants in October is anticipated to be weaker than in September.

Coal burns at power plants under six major Chinese coastal power groups averaged 839,800 tonnes on September 29, hitting the lowest level in nearly three months and exceeding the year-ago level by 2%. Their stocks, however, rebounded to a relatively ample level, enough to cover 16.5 days' worth of usage.

Many participants, however, still saw limited downside in the near term, given the active utility tenders and expectations for tightening domestic supply in the fourth quarter due to overproduction inspections.

"I think the market could first consolidate after the holiday and then strengthen," said a Guangdong-based trader source.