The international vertically integrated pipe and wheel company (TKK) “Interpipe” in January-November this year reduced steel production by 12.6% compared to the same period last year – to 696.9 thousand tons.
According to the company’s monthly report on Thursday, over 11 months, pipe production decreased by 23.3% – to 425.6 thousand tons, the production of railway products – by 7.5%, to 174 thousand tons.
In November, steel smelting amounted to 55.6 thousand tons, output of railway products – 13 thousand tons, pipes – 37.5 thousand tons.
It is noted that in January- In November, the company increased sales of round steel billets by 31.4% – to 30.3 thousand tons, but reduced railway products – by 4.6%, to 175.5 thousand tons, pipe sales – by 21.7%, to 425.8 thousand tons.
It is also reported that pipes in January-November of this year were sold in Europe (30%), the MENA region (24%), Ukraine (21%), the CIS (12% ), the Americas (10%) and other regions (3%). In November, pipes were sold in Europe (34%), Ukraine (36%), the MENA region (17%), the CIS (8%), the American continent (3%) and other regions (2%).
Railway products – in the CIS (43%), Europe (35%), Ukraine (13%), the MENA region (5%), the American continent (3%) and in other regions (1%). In November – in the CIS (42%), Europe (42%), Ukraine (10%), the MENA region (3%), the American continent (2%) and other regions (1%).
According to Interpipe’s commentary, in November 2020, sales dynamics for all of the company’s products remained rather unstable amid the still unclear recovery of key markets and economies.
At the same time, the total volume of pipe products sales last month decreased by 6.8% versus the previous month, returning to roughly the July level. The level of sales decline for 11 months of 2020 compared to 11 months of 2019 was 21.7%, which is practically the same as the level of decline for 10 months of 2020 to 10 months of 2019 – “minus” 22%.
Sales of pipes in the oil and gas segment (OCTG) in November increased by 142.4% versus October, but in 11 months of 2020 decreased by 52.2% compared to the same period last year. The main drivers of such strong growth in November compared to the fall in the previous month were the stabilization of supplies to the MENA region under long-term contracts, as well as the recovery of drilling activities and increased consumption by domestic oil and gas companies.
The normalization of pipeline pipe sales continued in November after a peak in September (minus 29.1% against October) due to lower demand in all key markets: consumption in America and Europe decreased due to an increase in the number of COVID-19 cases and tightening of isolation measures, sales to the Middle East and North Africa were also slightly lower than last year, given specific delivery schedules for key customers.
At the same time, sales of general pipes in November rose by 25.3% versus October amid growing demand for boiler pipes in Ukraine and an increase in the volume of shipment of cold drawn pipes to the European market.
Sales of welded pipes in the last month of the UPA or by 3.1% versus October.
“An increase in HRC (hot-rolled steel) prices by $ 118 per tonne (FOB Black Sea) since the end of October caused an upward revision of final prices, which was not fully perceived in the domestic market and in the CIS countries. At the same time, the volume loss was offset by higher sales to European customers, who suffered from a shortage of HRC and a rapid rise in prices, “the report explains.
The sales volumes of railway products in November significantly decreased – by 21.1% to October, mainly due to a 21-day overhaul of the company’s wheel-rolling shop, production of hot, rolling and forging parts was suspended, finishing operations continued using previously produced forged wheels. production and sales in December will return to October levels.
As reported, TCC Interpipe in 2019 reduced steel production by 4.2% compared to the previous year – to 854.5 thousand tons, including 57.1 thousand tons were produced in December. According to the results of the year, the production of pipes decreased by 13.3% to 587 thousand tons (in December – 32.1 thousand tons), but railway products – by 11%, to 207.7 thousand tons (19.6 thousand tons).
In 2019, the company increased sales of round steel billets by 22.8% – to 23.7 thousand tons, railway products – by 7%, to 202.1 thousand tons, but reduced the sale of pipes by 10.6% – to 597.1 thousand tons (53.3 thousand tons). Pipes were mainly sold in Ukraine (25%), Europe (24%) and the American continent (24%). Railway products – in the CIS (45%), Europe (26%) and Ukraine (22%).
Interpipe is a Ukrainian industrial company, pr