Business news from Ukraine

Business news from Ukraine

UKRAINE RAISES PIPE PRODUCTION IN OCT-JAN 2021

4 November , 2021  

The main pipe enterprises of Ukraine in January-October this year increased production of pipes from ferrous metals, according to recent data, by 15.9% compared to the same period last year – to 821,600 tonnes, in particular in October – 79,300 tonnes, while in September – 93,900 tonnes. Ukrtruboprom told Interfax-Ukraine, in particular, the enterprises of the association increased production of pipes by 30% in the ten months – up to 581,800 tonnes, while in October, compared to the same period last year, they increased production by 46.6%, but reduced by 9.3% from September 2021, to 67,600 tonnes. Ukrtruboprom Director General Heorhiy Polsky said Interpipe Niko Tube and Trubostal are showing positive dynamics, which in the ten months increased pipe production by 95.7% and 21.4%, respectively. At the same time, Centravis reduced production of stainless steel pipes by 5.9%, Interpipe Novomoskovsk Pipe Plant – electric-welded pipes by 30.1%.Dnipropetrovsk Pipe Plant has already been declared bankrupt by the court and is in a state of liquidation. The chances of resuming production at it tend to zero.“Favorable conditions on foreign markets have been the main driver of growth in the production of seamless pipes at Ukrtruboprom enterprises for the eighth month in a row. World oil and gas prices, while maintaining high levels, provide good support for the consumption of oil and gas pipe products,” the CEO said. At the same time, he pointed out that high prices for energy resources in Ukraine continue to negatively “put pressure” on the cost of production of pipe plants. In addition, manufacturers of seamless pipes still experience a shortage of scrap metal, the main raw material for production, especially in the run-up to winter.