methanol lost advancing momentum

Prior to the holiday, the driving force for methanol came from crude oil and coal. However, the advancing momentum tapered off after the holiday as crude oil consolidated and coal price even plunged.

The most actively trading contract for steam coal futures hit daily upper limit on Feb 8, but then was overwhelmed by announcement from National Development and Reform Commission to ensure supply and stabilize coal price on Feb 9. Prices of steam coal futures lost a whopping 11% in two trading days.

As a result, methanol lost advancing momentum. As methanol supply and demand fundamentals are little changed compared to the situation before the holiday, the market could be affected by volatility in the cost for a longer period