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.
