By Colleen Howe and Amy Lv
BEIJING (Reuters) – Global energy trading house Vitol is downsizing the China thermal coal trading operation it recently acquired from Noble Resources, according to two sources with knowledge of the matter.
Two of three China-based thermal coal traders are being laid off, according to a source with direct knowledge of the decision. A second source briefed on the matter said there was only one coal trader left in the Beijing office.
Vitol did not immediately respond to an emailed request for comment sent before the start of business hours at its Europe headquarters.
Vitol acquired the team in January from Hong Kong-based Noble Resources Trading, following a deal aimed at expanding its coal trading business.
Noble traded 35 million tonnes of thermal coal per year and was a leader in metallurgical coke and coal.
But the outlook for China’s coal demand growth has weakened as it transitions to renewables, and after an unseasonably warm winter that weighed on demand.
Facing mounting port inventories, China’s largest coal miner China Shenhua Energy has halted spot purchases of imported coal from April for an indefinite period of time, sources said.
China’s coal imports are projected to fall 1.9% this year, according to an industry association forecast, after rising 14.4% in 2024 to a record high.
(Reporting by Colleen Howe and Amy Lv; Editing by Sonali Paul)
