Chinese power utilities appeared to be slightly more active in floating tenders and securing cargoes for seaborne low-CV thermal coal, despite foreign sellers currently exiting the market for holiday celebrations.

One major power group is seeking 16 cargoes totaling 1.09 million tonnes of thermal coal with delivering laycan in February and March through a tender that is due to close at 10:00 a.m. Beijing time on December 27, marking the highest volume since mid-November.

Nine cargoes must originate from Indonesia, while the remaining eligible from Indonesia, Australia, S Africa, Russia, Malaysia, the Philippines, or Colombia, showed the tendering document.

The improved appetite may be linked to reduced bidding prices from Chinese traders. Several bidding prices to utility tenders for seaborne 3,800 Kcal/kg NAR coal fell below 460 yuan/t, CFR with VAT, hitting the lowest since August last year, Sxcoal's tracking data showed.

A southern utility reportedly bought eight cargoes of same-CV coal through a tender that closed on December 25. Three are to be delivered in February at 458-463 yuan/t CFR China with VAT, netting back to $49.9-50.4/t FOB East Kalimantan on a Panamax basis, while five with March-delivering laycan at 462-467 yuan/t, translating to $50.3-50.9/t, sources said.

"The import market is stabilizing as the decline in domestic prices has halted," said one trader in southeastern China.

Some Panamax cargoes of Indonesian 3,800 Kcal/kg NAR coal delivering in mid-January are available slightly above $50/t FOB, mainly owing to a significant decline in seaborne freight rates from South Kalimantan to South China, he added, noting actual offers from foreign miners only mildly retreated.

Sxcoal's data showed the freight rate for Panamax vessels on the East Kalimantan-China Guangzhou route fell to $5.52/t on December 25, falling sharply by 21% compared with the preceding month and 35% from a year ago. The rate for Supramax vessels also fell to $8.8/t, down by 11% and 12% respectively month on month and year on year.

"Mid- and high-CV thermal coal activities remain sluggish due to limited price advantages. Importing cost of some grades was roughly $10/t higher compared the domestic trading levels," said another trader source in southern China.

Production in Indonesia for next year is expected to be flat compared to this year, but it partly depends on market prices, he stated. "They have open-pit mines, which allows for more flexible adjustments."

Coal consumption at power plants remained stable, showing few signs of a substantial increase. Sxcoal's data showed on December 25, coal burns at power plants under six Chinese major coastal power groups averaged 863,900 tonnes, inching down 0.03% week on week but rising 6.53% month on month.

Coal stocks held by these plants rebounded 0.54% from a week ago yet fell 3.17% compared with the month-ago level.

In the domestic market, offer prices of some coal grades gradually stabilized owing to improved inquiries and intensified resistance among sellers against further markdowns, although there were still a few lagged price reductions.

"Downstream users have shown slightly increased acceptance to the current offering levels, after finding it difficult to secure supplies at their originally desired levels," said one trader source in northern China.

While a deal for 0.8%-sulfur 5,000 Kcal/kg NAR coal changed hand at 668 yuan/t, FOB northern ports with VAT, offering levels have generally stabilized at least at 670 yuan/t, possibly indicating a cease to the recent losing streak.

Several seller sources at northern ports reportedly halted sales, anticipating minor upward corrections later this week, according to sources.

Coal stocks at northern ports (Qinhuangdao, Caofeidian, Jingtang, and Huanghua) fell to 26.74 million tonnes on December 26, hitting the lowest since early November this year and marking alleviated selling pressure.

Sentiment improved slightly in key production areas, as several miners increased prices to gauge market reaction.

Due to slightly tightened supply from some mines reaching their annual targets, several miners in Ordos, Inner Mongolia, and Yulin, Shaanxi, experienced increased truck arrivals for loading and raised prices by 5-10 yuan/t, while most miners kept their prices unchanged.

On December 26, five mines contacted by Sxcoal raised prices by 9 yuan/t on average, while nine mines cut prices averagely by 20.38 yuan/t and the remaining 77 maintained prices flat.