In January-September 2022, the international vertically integrated steel and railway company Interpipe cut its steel output by 36.3% year-on-year, to 463 thnd mt.
According to the presentation of the company results for the first nine months of last year, the output of pipes decreased by 30.2% to 309 thousand tons, railway products – by 49.6%, to 64 thousand tons.
In Q3-2022, steel output stood at 177 thnd mt (a 43.9% increase on Q2-2022), pipe output – at 105 thnd mt (a 4.5% decrease), railroad output – at 24 thnd mt (a 33.3% increase).
As previously reported, in 2021, Interpipe increased steel output by 28.1% compared to 2020 – up to 971 thousand tons, pipe output increased by 32.5% – to 614.8 thousand tons, while production of railway products decreased by 9.7% – to 172.1 thousand tons.
“Interpipe is a Ukrainian industrial company, which produces seamless pipes and railway wheels. The company supplies its products to over 80 countries all over the world through a network of commercial offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2021, the company sold 602 thnd mt of tubes and 174 thnd mt of railroad products. The company sells its railroad products under the KLW brand.
There are about 10 thsd. employees in Interpipe.
The company consists of five industrial assets: “Interpipe Nizhnedneprovsky Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko Tube”, “Interpipe Vtormet” and the electric steelmaking complex “Dneprosteel” under the brand name “Interpipe Steel”.
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.
PJSC Interpipe Nyzhniodniprovsky Pipe Rolling Plant (Dnipro) has built and commissioned a new warehouse at the export site of the company’s wheel-rolling shop, investing $271,000 in the project.
According to the quarterly report of the company, at the beginning of 2020, Interpipe plant provided itself with an additional warehouse for finished products, and a collection point was established for packing additional volumes of wheels in pallets.
“The new storage was organized to reduce the cost of packaging for sending railway wheels for export,” it said.
In addition, the company began using wooden pallets instead of metal cassettes for products that are shipped to Europe by truck, transported by road.
The report also states that in March steel indices in the global markets declined due to a sharp drop in demand. At the same time, the cost of scrap metal HMS 80/20 CFR Turkey fell by $20.7/tonne, or 7.6% compared to the previous month, the cost of square billets FOB Black Sea by $18.1/tonne or 4.7%.
“Most of the traditional trade outlets for steel billets of CIS production were inactive due to blocking and restrictive measures introduced by the governments during the pandemic. The demand was seen mainly in China,” the report said.
The Ukrainian market has also suffered due to protective measures in the fight against coronavirus, in particular, the hryvnia has depreciated by 14.3% since the beginning of March, construction volumes were down. The output of railway wagons also decreased.
EXPORT, INTERPIPE, PLANT, RAILWAY PRODUCTS, SHIPMENT, WAREHOUSE
