Ukrgazvydobuvannya JSC (UGV) concluded a contract for UAH 200 million with the Polish company Solvachem sp. z o. o. for the supply of 12,000 tons of methanol. This is reported by Nashi Groshi.
According to the terms of the contract, the price of delivery on the terms of FCA Szczecin (Poland) is €427/t and is recalculated quarterly with reference to the ICIS quotation, which was €505/t on the date of the start of the procedure. In accordance with the concluded additional agreement, for the 1st quarter of 2023, the price of methanol supply is set at €403/t.
According to the website Nashi Groshi, at the beginning of the Russian invasion of Ukraine, there was an obvious jump in the price of European methanol for Ukraine. Thus, in 2019-2021, the price of methanol was from +€20 to -€40 to the European quotation. At the same time, all deliveries came from Russia on a direct railway route - from the Tula region (Shchokinoazot) to Poltava.
Since the beginning of the invasion, Ukrgazvydobuvannya has switched from Russian methanol to supplies from Europe. The premium for quoting from intermediaries on the terms of DAP Poltava has increased to €160-200/t. This increase is due to the increase in the cost of logistics by road transport from Europe, as well as the risks that European sellers included in the price.
By the end of 2022, UGV managed to establish stable relations with several carriers. Contracts were concluded with Trans-Service-1 LLC (UAH 21.90 million), Special Mining Solutions LLC (UAH 12.45 million), Miko-Trans-1 LLC (UAH 43.83 million), and such contracts continue to be concluded in January-February 2023. Now delivery from the European hub in Szczecin (Poland) costs approximately €180/t (€130/t to the border and €50/t within Ukraine).
"As a result, this made it possible to conclude a large contract with a direct supplier from Poland, under which the main volume of supply will take place during 2023. The difference with ICIS quotes reached the level of €100/t. This means, considering the objective increase in the cost of logistics by €150/t, that European methanol is now being bought even on better terms than the Russian one used to be," Nashi Groshi notes.