Business news from Ukraine

UKRAINIAN ENTERPRISES RAISE PIPE OUTPUT BY 21%

In January-July of this year, the main pipe enterprises of Ukraine increased output of pipes from ferrous metals, according to recent data, by 21.2% compared to the same period last year, to 569,600 tonnes, including 96,200 tonnes produced in July. The Ukrtruboprom association told Interfax-Ukraine, in particular, that the enterprises of the association during this period increased production of pipes by 23.6%, to 377,700 tonnes. In particular, in July, the enterprises of the Ukrtruboprom association increased production by 81.5% compared to the same period last year, and by 7.3% compared to the previous month, to 70,800 tonnes.
According to Heorhiy Polsky, the General Director of Ukrtruboprom, Interpipe Niko Tube and Trubostal are showing positive dynamics, which over the seven months increased their pipe production by 78.4% and 20%, respectively. At the same time, Centravis reduced production of stainless steel pipes by 8%, and Interpipe Novomoskovsk Pipe Plant reduced production of electric-welded pipes by 33.4%. At the same time, Dnipropetrovsk Pipe Plant continues to be idle.
“The world economy continues to recover after the pandemic, therefore, a favorable situation remains in foreign markets. This allows the enterprises of the association to increase production of seamless pipes for the fifth month in a row,” the General Director of Ukrtruboprom said.
“Separately, it is worth noting the growth in the supply of premium pipe products. Our enterprises take on more orders with complex requirements,” the top manager said.
He also said that since the beginning of the year, all markets have seen an unprecedented rise in prices for raw materials, mainly for iron ore and scrap metal. Producers of welded pipes, which have reduced production since the beginning of this year, still feel the negative impact of the rise in strip prices and cannot resume normal operations.
In turn, a source in the industry told the agency that after pipe-rolling production of Interpipe Nyzhniodniprovsky Pipe Rolling Plant formally became part of Interpipe Niko Tube since April of this year, the statistics of pipe production at these enterprises has changed. According to the updated statistics, there was no pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in June-July. Whereas at Interpipe Niko Tube, production amounted to 67,600 tonnes last month, and over the seven months the production growth at this enterprise reached 78.4%, to 299,700 tonnes.
Pipe production at Interpipe Novomoskovsk Pipe Plant over the seven months decreased by 33.4%, to 28,900 tonnes (in July, 1,500 tonnes).
Dnipropetrovsk Pipe Plant was idle during this period, while in January-July 2020 it produced 300 tonnes. Centravis cut production by 8%, to 10,300 tonnes of stainless pipes (1,500 tonnes).
Trubostal increased its output by 20%, to 1,200 tonnes of pipes (200 tonnes).
Mariupol-based Illich Iron and Steel Works, which is not part of the Ukrtruboprom association, has increased production of pipes by 10.4, to 91,400 tonnes (in July – 10,700 tonnes), and Kominmet – by 23.9%, to 100,500 tonnes (14,700 tonnes).

PIPE ENTERPRISES OF UKRAINE RAISE PRODUCTION IN JAN-MAY

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.

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UKRAINE CUTS PIPE PRODUCTION IN 2020

The main pipe enterprises of Ukraine in 2020 reduced the production of pipes from ferrous metals, according to recent data, by 16.3% compared to the previous year, to 854,000 tonnes, including 71,000 tonnes produced in December.
As the Ukrtruboprom association told Interfax-Ukraine, in particular, the enterprises of the association last year reduced the production of pipes by 24.8%, to 538,000 tonnes, including 44,000 tonnes produced in December.
At the same time, according to preliminary data, the output of pipes at Interpipe Nyzhniodniprovsky Pipe Rolling Plant for the specified period fell by 33.7%, to 145,000 tonnes (in December it was 15,300 tonnes), at Interpipe Novomoskovsk Pipe Plant by 23.9%, to 78,600 tonnes (4,600 tonnes). Interpipe Niko Tube cut production by 16.5%, to 293,700 tonnes (22,200 tonnes).
Dnipropetrovsk Pipe Plant produced 300 tonnes of pipes, while in 2019 it produced 17,600 tonnes of these products. Centravis cut production by 9.3%, to 19,050 tonnes of stainless pipes (1,600 tonnes).
Trubostal plant reduced its output by 42.9%, to 1,600 tonnes of pipes (100 tonnes).
Mariupol Illich Iron and Steel Works, which is not included in the association Ukrtruboprom, reduced pipe production by 4.2%, to 151,600 tonnes (in December it was 12,300 tonnes), while Kominmet increased by 12.2%, to 164,600 tonnes (14,900 tonnes).
Earlier, Ukrtruboprom said 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.

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UKRAINE REDUCES PIPE PRODUCTION IN 2020

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.

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UKRAINE REDUCES PIPE PRODUCTION BY 27%

The main pipe enterprises of Ukraine in January-August of this year reduced production of pipes from ferrous metals, according to recent data, by 27% compared to the same period last year, to 539,100 tonnes, in particular in August 69,300 tonnes were produced.
The Ukrtruboprom association told Interfax-Ukraine that the enterprises of the association, in particular, for the eight months of the year reduced production of pipes by 34.7%, to 351,400 tonnes, including 45,500 tonnes in August.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant for the indicated period decreased by 43.9%, to 95,100 tonnes (13,100 tonnes in August), at Interpipe Novomoskovsk Pipe Plant by 33.3%, to 51,000 tonnes (7,600 tonnes). Interpipe Niko Tube reduced production by 26.6%, to 191,500 tonnes (23,500 tonnes).
Dnipropetrovsk Pipe Plant produced 300 tonnes of pipes, while in January-August 2019 some 15,700 tonnes of products were made, Centravis reduced production by 10.9%, to 12,300 tonnes (1,100 tonnes).
Trubostal plant reduced its output by 33.3%, to 1,200 tonnes of pipes.

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UKRAINE REDUCES PIPE PRODUCTION IN JAN

The main pipe enterprises of Ukraine in January of this year reduced production of pipes from ferrous metals, according to recent data, by 23.9% compared to the same period last year, to 65,800 tonnes.
The Ukrtruboprom association told Interfax-Ukraine that in January 2020, the enterprises of the association reduced production of pipes by 41.8%, to 40,100 tonnes.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant for the indicated period decreased by 33.9%, to 14,800 tonnes, at Interpipe Novomoskovsk Pipe Plant by 48.2%, to 4,400 tonnes. Interpipe Niko Tube reduced production by 44.5%, to 19,200 tonnes.
Dnipropetrovsk Pipe Plant increased pipe production to 100 tonnes from 1,400 tonnes in January 2019, Centravis by 21.1%, to 1,500 tonnes of stainless pipes.
Trubostal plant retained pipe production at 100 tonnes of pipes.
Mariupol-based Illich Steel Mill, which is not part of the Ukrtruboprom association, increased pipe production by 51.5% in January 2020, to 15,000 tonnes, while Kominmet by 39%, to 10,700 tonnes.
As reported with reference to the data of Ukrtruboprom, in 2019 Ukraine reduced pipe production by 9.1% compared to the previous year, to 1.002 million tonnes. Enterprises of the association reduced pipe production by 10.2% to 715,100 tonnes.

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