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.