Commodity trading giant Vitol Group is cutting back on its recently acquired heated carbon trading business in China, according to sources familiar with the plan. Reuters on friday.
According to Reuters sources, Vittle has fired a Chinese coal trader and there is only one trader left in his Beijing office.
Last year, Vitol, the world's largest independent oil trader, acquired Noble Resources Trade Limited, an Asian energy product and industrial raw material trader, for $209 million.
At the time, Vitol said Noble Resources was one of Asia's leading independent energy products and industrial raw materials supply chain managers.
Noble Resources operates in a supply chain of energy coal, petroleum products and metallurgical cokes and is supported by its freight and logistics business.
Vitol acquired Noble Resources coal trading team in January as part of the acquisition.
Despite the fact that coal continues to be the backbone of China's electricity system and its industry's raw materials, China's short-term coal demand outlook has weakened somewhat.
Nevertheless, despite the record-breaking additional renewable energy boom in solar and wind power, coal remains the king of China.
In 2024, China's imports are estimated to have jumped to a record high of 542.7 million tonnes, up 14.4% from the previous year. Analysts believe the rise in China's coal imports stems from a decline in international maritime coal prices that have begun to award imports to China.
Thermal power generation, which is dominated by coal, increased by 1.5% from the previous year in 2024. Record height Of the 6.34 trillion kilowatt-hours (kWh), data from China's National Bureau of Statistics is shown.
The sustainable growth of China's coal demand, including power generation, shows that coal remains the baseload of China's electricity system to back up the surge in renewable energy, and remains that way for years as a jump in electricity demand with increased homes and transportation.
By Tsvetana Paraskova on ofprice.com
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