Business news from Ukraine

UKRAINIAN ENTERPRISES RAISE PIPE OUTPUT BY 21%

13 August , 2021  

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).