Business news from Ukraine

“Ukrtruboprom” increased production of pipes by 5%

4 August , 2023  

Enterprises of Ukrtruboprom association in January-June this year increased production of pipes by 5% compared to the same period last year – up to 253.5 thousand tons.

According to the data of the association on Thursday, in January this year about 30 thousand tons of pipe products were produced (44.9% to January-2022), in February – 39.5 thousand tons (80.4% to February). tons (80.4% of February-2022), in March – 57 thousand tons (1631.4% of March-2022), in April – 42.3 thousand tons (228.6% of April-2022), in May – 49.6 thousand tons (96.5% of May-2022), in June – 35 thousand tons (67.8% of June-2022).

At the same time, it is noted that in the first half of the year-2023, pipe companies demonstrated multidirectional dynamics. In particular, “Interpipe Niko Tube” and NPP with AI “Ukrtruboizol” increased production of seamless pipes by 12.4% and 81.8% respectively, while “Trubostal” reduced by 69.4%, “Centravis” – stainless pipes by 3%, “Interpipe NMTZ” – electric-welded pipes by 79.5%. Production of pipes by Oskar decreased by 27.7%.

General Director of Ukrtruboprom Association Heorhiy Polskiy noted that “the results of the first half of the year can be called positive for the industry as a whole, although it is necessary to note the effect of a low base of comparison for the same period last year”.

“It is obvious that the production capacities of the enterprises are not loaded to the pre-war level”, – stated the general director.

Nevertheless, he added, Ukrainian companies even in such difficult, military conditions are looking for customers and orders, establishing interaction with partners in foreign markets, mainly in Europe, which is close to Ukraine logistically.

“In addition, we hold positions in the Middle East and Central Asia, despite aggressive competition from manufacturers from China,” Polsky added.

As reported, the enterprises of Ukrtruboprom in the first quarter increased the output of pipes by 5.9% to 126.5 thousand tons. And it was noted that a strong concern of pipe companies is the situation with the supply of scrap metal to Ukrainian seamless pipe manufacturers, which use it as the main raw material. Thus, the first quarter of 2023 was characterized by a strong deficit of scrap in Ukraine, the volume of which reached 20% in the whole MMC.

“Obviously, this factor led to production losses at pipe mills. Moreover, the situation remains tense, as Ukraine has been experiencing a strategic scrap shortage for more than 20 years, and there are no tools to increase scrap procurement now. The situation is aggravated by record volumes of scrap exports, which are taken out of the country without paying duty through non-transparent schemes, which causes damage to the state budget,” Polsky emphasized.

Enterprises of Ukrtruboprom in 2022 reduced the production of pipes by 37.9% compared to 2021 – to 449.7 thousand tons. Last year, all plants demonstrated negative dynamics. “Interpipe Niko Tube” and “Trubostal” reduced seamless pipe production by 31.1% and 61.6% respectively, “Centravis” – stainless steel pipes by 38.3%, “Interpipe NMTZ” – electric-welded pipes by 67.1%. Production of pipes of PO Oskar fell by 20%, and only NGO with AI Ukrtruboisol reached the production level of the year before last. Dnipropetrovsk Pipe Plant is idle and in a state of liquidation.

,