In January-March this year, Ukrtruboprom enterprises increased pipe production by 12.6% year-on-year to 142.5 thousand tons.
According to the company’s data on Tuesday, in January 2024, it produced 52.5 thousand tons of pipe products (174.4% compared to January 2023), in February – 41.4 thousand tons (105.1% compared to February 2023), in March – 48.6 thousand tons (85.1% compared to March 2023).
In the first quarter, almost all pipe companies showed positive dynamics. In particular, Interpipe Nico Tube and Trubostal increased production of seamless pipes by 11.5% and 75%, respectively, Centravis increased production of stainless pipes by 13.8%, and Interpipe NMTZ and Ukrtruboizol increased production of electric-welded pipes by 69.2% and 714.3%, respectively. Only Oscar’s pipe production decreased by 43.2%.
Ukrtruboprom CEO Georgy Polsky stated that the positive results of the first quarter of 2024 were primarily due to the low comparison base of the previous year, when the industry operated under strict electricity consumption limits. This led to an increase in production “on paper”.
“In reality, the rate of pipe production is slowing down, and in March, a 15% decline was recorded. The main reason is a significant increase in imports of steel pipes from China to Ukraine at dumping prices, which are supported by Chinese government subsidies,” Mr. Polsky emphasized.
He also added that the US and the EU have recently been actively working to develop and implement protectionist measures that will limit the flow of Chinese goods into their markets. The Ukrainian steel pipe market also needs protection from dumped imports from China, the Ukrtruboprom CEO summarized.
As reported, Ukrtruboprom’s enterprises increased production by 10.2% to 495.6 thousand tons in 2023, but could have done more if the volume of Chinese products in the domestic market had declined.
In particular, Interpipe Niko Tube increased its production of seamless pipes by 13.3%, while Trubostal reduced its output by 42.5%. Ukrtruboizol increased production of electric-welded pipes by 43.8%, while Interpipe NMTZ decreased production by 53.8%. “Centravis increased production of stainless pipes by 11.7%. Oscar’s pipe production decreased by 30.5%.
At the same time, it was specified that in January 2023, the company produced 30.1 thousand tons of pipe products (44.9% compared to January 2022), in February – 39.4 thousand tons (80.4% compared to February 2022), in March – 57.1 thousand tons (1631.4% compared to March 2022), in March – 57.1 thousand tons (1631.4% compared to March 2022). tons (1631.4% compared to March 2022), in April – 42.3 thousand tons (228.6% compared to April 2022), in May – 49.6 thousand tons (96.5% compared to May 2022), in June – 35 thousand tons (67.8% compared to June 2022). In July 2023, the company produced 43.9 thousand tons of pipes (112% compared to July 2022), in August – 41.8 thousand tons (114.5%), in September – 36.9 thousand tons (89.9%), in October – 39.7 thousand tons (98%), in November – 37.2 thousand tons (110.1%) and in December – 42.4 thousand tons (239.5%).
In January-March of this year Ukrtruboprom has increased pipes production by 5.9% in comparison with the same period of the last year – up to 126.5 thousand tons.
According to the Association, this January they produced about 30 thousand tons of tubes (44.9% of January-2022), in February – 39.5 thousand tons (80.4% of February-2022), in March – 57 thousand tons (1631.4% of March-2022).
It is to be noted that the pipe companies showed multidirectional dynamics in the first quarter. In particular, “Interpipe Niko Tube” and NPO with IP “Ukrtruboizol” increased the production of seamless tubes by 21.6% and 7.7%, respectively, while “Trubostal” decreased by 73.3%, “Centravis” – stainless steel tubes by 23.7%, “Interpipe NMTZ” – electric-welded pipes by 89.1%. Oskar pipe production dropped by 16.7%.
Georgiy Polskiy, director general of Ukrtruboprom, noted that the results of the first quarter of 2023, although they look positive at first glance, are deceptive when viewed in more detail: most companies showed a decline in production, and the final 6% increase is only the result of a low comparison base.
“Let me remind you that last March the industry virtually came to a halt due to the large-scale invasion of Ukraine by Russian troops. In any case, we cannot speak of pre-war production volumes in the pipe industry. However, due to the stable conjuncture of foreign markets (although there is a certain slowdown in consumption with some regional changes), the output of pipes is growing every month,” said the general director.
According to him, in this light, the situation with scrap metal supply for seamless pipes producers in Ukraine, who use scrap metal as the main raw material, is of great concern.
Thus, the first quarter of 2023 was characterized by a strong shortage of scrap in Ukraine, the volume of which reached 20% in the MMC as a whole.
“Obviously, this factor led to losses in production at pipe enterprises. Moreover, the situation remains tense, as Ukraine has been experiencing a strategic shortage of scrap for more than 20 years, and there are now no tools to increase scrap production. Exacerbate the situation is a record amount of exports of scrap metal, which is exported from the country without paying duty through non-transparent schemes, which causes damage to the state budget, “- said Polish, quoted by the press service.
As Ukrainian News earlier reported, Ukrtruboprom enterprises in 2022 reduced the production of pipes by 37.9% compared to 2021, to 449.7 thousand tons. Last year all plants showed negative dynamics. “Interpipe Niko Tube” and “Trubostal” decreased the production of seamless pipes by 31.1% and 61.6%, respectively, “Centravis” – stainless steel pipes by 38.3%, “Interpipe NMTZ” – electric-welded pipes by 67.1%. Oskar pipe production dropped by 20%, and only Ukrtruboizol, an NGO with a CI, reached the output level of the year before last. The Dnepropetrovsk pipe plant is idle and is in a state of liquidation.
In January-July of this year, the main pipe enterprises of Ukraine increased output of pipes from ferrous metals, according to recent data, by 21.2% compared to the same period last year, to 569,600 tonnes, including 96,200 tonnes produced in July. The Ukrtruboprom association told Interfax-Ukraine, in particular, that the enterprises of the association during this period increased production of pipes by 23.6%, to 377,700 tonnes. In particular, in July, the enterprises of the Ukrtruboprom association increased production by 81.5% compared to the same period last year, and by 7.3% compared to the previous month, to 70,800 tonnes.
According to Heorhiy Polsky, the General Director of Ukrtruboprom, Interpipe Niko Tube and Trubostal are showing positive dynamics, which over the seven months increased their pipe production by 78.4% and 20%, respectively. At the same time, Centravis reduced production of stainless steel pipes by 8%, and Interpipe Novomoskovsk Pipe Plant reduced production of electric-welded pipes by 33.4%. At the same time, Dnipropetrovsk Pipe Plant continues to be idle.
“The world economy continues to recover after the pandemic, therefore, a favorable situation remains in foreign markets. This allows the enterprises of the association to increase production of seamless pipes for the fifth month in a row,” the General Director of Ukrtruboprom said.
“Separately, it is worth noting the growth in the supply of premium pipe products. Our enterprises take on more orders with complex requirements,” the top manager said.
He also said that since the beginning of the year, all markets have seen an unprecedented rise in prices for raw materials, mainly for iron ore and scrap metal. Producers of welded pipes, which have reduced production since the beginning of this year, still feel the negative impact of the rise in strip prices and cannot resume normal operations.
In turn, a source in the industry told the agency that after pipe-rolling production of Interpipe Nyzhniodniprovsky Pipe Rolling Plant formally became part of Interpipe Niko Tube since April of this year, the statistics of pipe production at these enterprises has changed. According to the updated statistics, there was no pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in June-July. Whereas at Interpipe Niko Tube, production amounted to 67,600 tonnes last month, and over the seven months the production growth at this enterprise reached 78.4%, to 299,700 tonnes.
Pipe production at Interpipe Novomoskovsk Pipe Plant over the seven months decreased by 33.4%, to 28,900 tonnes (in July, 1,500 tonnes).
Dnipropetrovsk Pipe Plant was idle during this period, while in January-July 2020 it produced 300 tonnes. Centravis cut production by 8%, to 10,300 tonnes of stainless pipes (1,500 tonnes).
Trubostal increased its output by 20%, to 1,200 tonnes of pipes (200 tonnes).
Mariupol-based Illich Iron and Steel Works, which is not part of the Ukrtruboprom association, has increased production of pipes by 10.4, to 91,400 tonnes (in July – 10,700 tonnes), and Kominmet – by 23.9%, to 100,500 tonnes (14,700 tonnes).
The main pipe enterprises of Ukraine in January-May this year increased production of pipes from ferrous metals, according to recent data, by 15.8% compared to the same period last year, to 385,000 tonnes, including 96,900 tonnes produced in May.
According to a press release of the Ukrtruboprom association on Wednesday, in particular, the enterprises of the association during this period increased pipe production by 11.8%, to 249,500 tonnes, including 67,000 tonnes produced in May, having raised production by 53.3% compared to the same period last year and by 17.3% compared to April this year.
“Ukrainian pipe enterprises continue to increase production,” the press release said.
At the same time, it is specified that the positive dynamics is demonstrated by Interpipe Niko Tube, which over the five months has increased output of pipe products by 46.1%. At the same time, Centravis cut production by 8.6% and Interpipe Novomoskovsk Pipe Plant by 21.3%, while Trubostal kept pipe production at last year’s level.
At the same time, Dnipropetrovsk Pipe Plant continues to be idle.
General Director of Ukrtruboprom Heorhiy Polsky noted that the growth of production at pipe enterprises began in March and has continued for the third month in a row.
“The positive dynamics in May was mainly due to the continued favorable situation in foreign markets. The increase and subsequent stabilization of oil prices led to an increase in demand for oil and gas pipes, and the end of winter has intensified the consumption of pipe products for construction purposes. An important positive factor was also the removal in different countries of restrictions related to the spread of COVID-19,” the press release said, citing the General Director.
At the same time, Polsky noted that demand within Ukraine continues to stagnate: hydrocarbon production is falling, and the renewal of housing and communal services has stalled. In this regard, Ukrainian pipe manufacturers are forced to rely on export markets.
“It is also necessary to note the sharp rise in the price of Ukrainian strip, which affected the plants producing welded pipes. In the spring, prices for this metal product rose by almost half. As a result, the pipe enterprises were unable to quickly shift the growth of costs during pricing, that is why they lost orders and reduced production,” the head of Ukrtruboprom said.
A source in the industry, not a member of the Ukrtruboprom association, told Interfax-Ukraine that Mariupol-based Illich Iron and Steel Works over the five months of 2021 increased pipe production by 10.8%, to 64,500 tonnes ( in May – 14,300 tonnes), and Kominmet increased pipe production by 38.7%, to 71,000 tonnes (15,600 tonnes).
According to its information, which was confirmed by Interpipe, since April of this year, the pipe rolling production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant has formally become a part of Interpipe Niko Tube.
The main pipe enterprises of Ukraine in 2020 reduced the production of pipes from ferrous metals, according to recent data, by 16.3% compared to the previous year, to 854,000 tonnes, including 71,000 tonnes produced in December.
As the Ukrtruboprom association told Interfax-Ukraine, in particular, the enterprises of the association last year reduced the production of pipes by 24.8%, to 538,000 tonnes, including 44,000 tonnes produced in December.
At the same time, according to preliminary data, the output of pipes at Interpipe Nyzhniodniprovsky Pipe Rolling Plant for the specified period fell by 33.7%, to 145,000 tonnes (in December it was 15,300 tonnes), at Interpipe Novomoskovsk Pipe Plant by 23.9%, to 78,600 tonnes (4,600 tonnes). Interpipe Niko Tube cut production by 16.5%, to 293,700 tonnes (22,200 tonnes).
Dnipropetrovsk Pipe Plant produced 300 tonnes of pipes, while in 2019 it produced 17,600 tonnes of these products. Centravis cut production by 9.3%, to 19,050 tonnes of stainless pipes (1,600 tonnes).
Trubostal plant reduced its output by 42.9%, to 1,600 tonnes of pipes (100 tonnes).
Mariupol Illich Iron and Steel Works, which is not included in the association Ukrtruboprom, reduced pipe production by 4.2%, to 151,600 tonnes (in December it was 12,300 tonnes), while Kominmet increased by 12.2%, to 164,600 tonnes (14,900 tonnes).
Earlier, Ukrtruboprom said that in 2019 Ukraine reduced the production of pipes by 9.1% compared with 2018, to 1.002 million tonnes. Including the enterprises of the association reduced the production of pipes by 10.2%, to 715,100 tonnes.
The main pipe enterprises of Ukraine in January-October of this year reduced the production of pipes from ferrous metals, according to recent data, by 19.1% compared to the same period last year, to 704,000 tonnes, including 81,600 tonnes produced in October.
As the Interfax-Ukraine agency was informed in the Ukrtruboprom association, in particular, the enterprises of the association in the ten months of the year reduced the production of pipes by 28%, to 449,900 tonnes, including 48,200 tonnes produced in October.
At the same time, according to preliminary data, pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant for the specified period fell by 37.2%, to 120,300 tonnes (in October 14,200 tonnes), at Interpipe Novomoskovsk Pipe Plant by 27.4%, to 67,200 tonnes (8,600 tonnes). Interpipe Niko Tube cut production by 19.2%, to 245,400 tonnes (23,800 tonnes).
Director of economics and finance at Interpipe Denys Morozov told Interfax-Ukraine that the drop in production at the company’s pipe plants is due to a drop in demand for threaded pipes (OCTG) in Ukraine and the United States.
“In Ukraine, the pace and volume of new wells drilling decreased by 3-4 times compared to last year. The largest contribution to the decline was made by the state-owned company Ukrgazvydobuvannia. In addition, the market for general-purpose line pipes fell against the backdrop of a decline in the country’s GDP. The situation is similar in the United States: the rate of drilling has decreased three times. Many U.S. oil and gas companies have gone bankrupt. Therefore, the demand for pipes dropped dramatically. In addition, it is more difficult for us to compete in the market where there is a 32% duty on our products,” he said.
Dnipropetrovsk Pipe Plant (DTZ) produced 300 tonnes of pipes, while in January-October 2019 it produced 17,300 tonnes of these products. Centravis cut production by 11,5%, to 15,400 tonnes of stainless pipes (1,500 tonnes).
Trubostal plant reduced its output by 43.5%, to 1,300 tonnes of pipes (100 tonnes).
Mariupol-based Illich Metallurgical Combine, which is not part of the Ukrtruboprom association, increased its pipe production by 6%, to 127,600 tonnes (in October 16,300 tonnes), Kominmet increased by 0.8%, up to 126,400 tonnes (17,000 tonnes).
Earlier, Ukrtruboprom stated that in 2019 Ukraine reduced the production of pipes by 9.1% compared with 2018, to 1.002 million tonnes. Including the enterprises of the association reduced the production of pipes by 10.2%, to 715,100 tonnes.
