In the past two years, affected by the epidemic, geopolitics and other factors, the volatility of commodity prices has increased, and the risk management of methanol and operation of related enterprises became more difficult, and the use of derivatives has faced more challenge. For methanol entity enterprises, how to better evaluate the market, timely adjust hedging strategies and positions, and how to choose appropriate hedging tools to cope with the rapidly changing market has become a "required course" in operation.

The reporter learned that the current methanol industry chain has developed to a more mature stage by using futures. Many methanol spot trade settlement prices are priced by basis. In the aspect of risk management, futures are also more widely used, such as hedging inventory, purchasing price lock and so on. At the same time, the industry is also increasing the use of options.

At present, option is a common application in spot trade and also a supplement to the traditional trade model. In this way, the suppliers can deliver goods and meet the needs of downstream customers, and the demanders can achieve the purchase price ceiling, therefor to achieve a win-win result.

Many industrial enterprises said that methanol industry attaches great importance to hedging with futures derivatives, especially in an extreme market, option has become a very good risk control tool for methanol enterprises.