The surge in oil prices, triggered by supply disruptions in the Strait of Hormuz, created a distinct competitive advantage for coal-to-olefins production. While oil-based producers faced rapidly inflating feedstock costs, domestic coal prices remained comparatively restrained. This dynamic allowed the sector to capitalize on its ability to manufacture essential fertilizers and olefins without reliance on international petroleum markets.

Investors responded to this shift by driving industry stocks up by 30% during the spring, reflecting confidence in the long-term viability of coal-based chemical manufacturing. Current market conditions continue to favor this strategy, as oil prices remain elevated above pre-conflict levels. According to International Energy Agency data, China currently produces 85% of its methanol and ammonia from coal. Beyond existing production, major players like PetroChina are expanding their portfolios, targeting an output of 30 billion cubic meters of gas from coal rock by 2035.