Business news from Ukraine

Ukrtruboprom’s enterprises increased pipe production by 5%

In January-September of this year, Ukrtruboprom’s enterprises increased pipe production by 5% year-on-year to 376.1 thousand tons.

According to the association on Friday, in January of this year, about 30 thousand tons of pipe products were produced (44.9% compared to January-2022), in February – 39.5 thousand tons (80.4% compared to February-2022). In February, the company produced 57 thousand tons (1631.4% compared to March 2022), in March – 57 thousand 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, the company produced 43.9 thousand tons of pipes (up 12% compared to July-2022), in August – 41.8 thousand tons (14.5%), in September – 36.9 thousand tons (down 10.2%).

At the same time, it is noted that for 9 months of 2023, pipe companies have demonstrated multidirectional dynamics. In particular, Interpipe Nico Tube and Ukrtruboizol II increased production of seamless pipes by 8.8% and 26.2%, respectively, while Trubostal reduced production by 54.5%. “Centravis increased its production of stainless pipes by 12.9%, while Interpipe NMTZ decreased its production of SAW pipes by 62.9%. Oscar’s pipe production decreased by 25%.

Georgiy Polskiy, CEO of Ukrtruboprom, noted that in the first nine months of the year, the Ukrainian pipe industry showed positive dynamics despite the constant shelling of production sites located in the frontline areas, particularly in Nikopol. The plants are investing in employee safety, for example, by placing mobile protective units on the territory of the workshops where people can hide from the bombardment. In addition, the problem of stable water supply to pipe production facilities remains unresolved after the Kakhovka hydroelectric power plant dam was blown up and the Kakhovka reservoir was shallowed.

“The blockade of the Ukrainian-Polish border, which began in early November, was a real stab in the back for Ukrainian exporters, particularly steel pipes. The European direction is the only one left for our business after the start of a large-scale war. Many trucks with pipes are still stuck in traffic, and all delivery deadlines to European customers have been disrupted. But there is a threat that the strike will spread to other Eastern European countries. If this happens, almost all pipe plants located in the frontline regions will have to shut down production facilities from mid-December,” the CEO emphasized.

As reported, Ukrtruboprom’s enterprises increased pipe production by 5.9% to 126.5 thousand tons in the first quarter. In the first half of the year, they increased pipe production by 5% to 253.5 thousand tons.

In 2022, Ukrtruboprom’s enterprises reduced pipe production by 37.9% compared to 2021, to 449.7 thousand tons. Last year, all plants showed negative dynamics. “Interpipe Nico Tube and Trubostal reduced production of seamless pipes by 31.1% and 61.6%, respectively, Centravis – stainless pipes by 38.3%, Interpipe NMTZ – electric-welded pipes by 67.1%. Production of pipes at Oscar fell by 20%, and only Ukrtruboizol, the second largest producer of pipes, reached the level of the year before last. Dnipropetrovs’k Pipe Plant is idle and in the process of liquidation.

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UKRTRUBOPROM RAISES UP PIPE PRODUCTION

The enterprises of the Ukrtruboprom association increased production of pipes by 2.5 times in January 2022 y-o-y, to 69,200 tonnes.
According to a press release from the association on Thursday, all pipe plants of Ukrtruboprom demonstrated positive dynamics. In particular, Interpipe Niko Tube and Trubostal increased production of seamless pipes by 4.2 times and by 60% respectively, Centravis – stainless pipes by 29%, and Interpipe Novomoskovsk Pipe Plant – electric-welded pipes by almost 14 times.
Heorhiy Polsky, General Director of Ukrtruboprom, said that the favorable situation in foreign markets, associated primarily with rising prices for hydrocarbons, allowed Ukrainian pipe plants to maximize its production capacity.
“Some enterprises have already formed a portfolio of orders for several months in advance. At the same time, high gas prices in Ukraine are still a risk factor, making production of certain types of pipe products economically unfeasible,” the CEO said, whose words are quoted in the press release.

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UKRAINIAN PIPE PRODUCTION GOES UP BY 15% IN 2021

The main pipe enterprises of Ukraine in 2021 increased the production of pipes made of ferrous metals, according to operational data, by 15.1% compared to the previous year, to 980,700 tonnes, including 78,800 tonnes produced in December tonnes.
As a source in the government told Interfax-Ukraine, in particular, enterprises of the Ukrtruboprom association last year increased pipe production by 32.6%, to 710,500 tonnes, including 65,800 tonnes produced in December.
At the same time, the source said that after the pipe-rolling production of Interpipe Nyzhniodniprovsky Pipe Rolling Plant formally became part of Interpipe Niko Tube from April 2021, the statistics of pipe production at these enterprises changed. In accordance with the updated statistics, there was no production of pipes at Interpipe Interpipe Nyzhniodniprovsky Pipe Rolling Plant in June-December 2021, while at Interpipe Niko Tube it amounted to 57,000 tonnes last month, and in 2021 it doubled to 592,500 tonnes.
The production of pipes at Interpipe Interpipe Novomoskovsk Pipe Plant over the past year decreased by 24.3%, to 59,400 tonnes (in December it was 6,700 tonnes).
The Dnipropetrovsk Pipe Plant was idle last year, while in 2020 it produced 300 tonnes. Centravis reduced production by 2.2%, to 18,000 tonnes of stainless steel pipes (1,900 tonnes in December).
The Trubostal plant increased its output by 17.6% – up to 2 thousand tonnes of pipes (0.2 thousand tonnes).
Mariupol Illich Iron and Steel Works, which is not part of the Ukrtruboprom association, reduced the production of pipes by 28.7%, to 108,600 tonnes (in December it was 100 tonnes), Kominmet cut output by 1.3%, up to 161,600 tonnes (12,900 tonnes in December).

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VALLOUREC PREPARES PROJECT FOR PIPE PRODUCTION FOR EU

The international vertically integrated pipe and wheel company Interpipe and the world leader in the production of premium pipe products Vallourec (France) have terminated the implementation of a partnership project for the joint production of steel pipes for the European market due to restrictions on this market.
The company’s presentation on the results of work for January-September 2021 states: the project with Vallourec has been completed.
The Interpipe press service confirmed the termination of the joint venture’s activities to Interfax-Ukraine.
“Indeed, there is such a phrase in the presentation… Interpipe has terminated cooperation with Vallourec within the framework of a joint venture established in April 2018 for the production of line pipes with their subsequent sale in the EU market,” the press service told Interfax-Ukraine.
As explained, Interpipe was forced to make the decision due to the impossibility of fully utilizing the capacities of this joint venture due to the preservation of quotas and duties on Ukrainian pipe products in the European market.
“At the moment, Interpipe and Vallourec no longer produce and sell pipe products in the EU market under the JV. Since October, line pipes in the European market have been sold under the Interpipe brand, as it was before the joint venture was established,” the company said.

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UKRAINE RAISES PIPE PRODUCTION IN OCT-JAN 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.

UKRAINE RAISES PIPE PRODUCTION BY 21.6% IN JAN-AUG

The main pipe enterprises of Ukraine in January-August this year increased production of pipes from ferrous metals, according to recent data, by 21.6% compared to the same period last year, up to 655,100 tonnes, in August – 90,800 tonnes.
The Ukrtruboprom association told Interfax-Ukraine the enterprises of the association during this period increased the production of pipes by 26%, to 442,500 tonnes. In particular, in August, the enterprises belonging to the Ukrtruboprom association increased production by 54.9% compared to the same period last year, to 70,000 tonnes, compared to July – by 11.3%.
According to Heorhiy Polsky, the director general of Ukrtruboprom, Interpipe Niko Tube and Trubostal have shown positive dynamics, which in the eight months increased their pipe production by 84.1% and 27.3%, respectively. At the same time, Centravis reduced the production of stainless steel pipes by 2.4%, Interpipe Novomoskovsk Pipe Plant – electric-welded pipes by 30.8%.
At the same time, Dnipropetrovsk Pipe Plant continues to be idle.
“The favorable situation on the foreign markets continues to have a positive impact on the Ukrainian pipe industry. Ukrtruboprom enterprises have been increasing the production of seamless pipes for the sixth month in a row,” the CEO said.
According to him, the demand for oil and gas products is at a high level due to the increase in world prices for hydrocarbons. At the same time, the consumption of line pipes is also stable. Another positive factor: an increase in shipments of premium pipe products, that is, the Ukrainian Truboprom is increasing the share of complex orders.
Polsky also pointed to an increase in the production of welded pipes: since the second half of the year, strip prices have stabilized, which allowed the plants to resume normal operation.