Interpipe cut steel production by 17.2%

The international vertically integrated pipe and wheel company (TKK) “Interpipe” in January-June of this year reduced steel production by 17.2% compared to the same period last year – to 393.2 thousand tons.

As reported in the monthly report of the company on Monday, for six months the production of pipes decreased by 31.6% – to 233.6 thousand tons, the production of railway products increased by 4.1% – to 101.8 thousand tons.

In June, steel smelting amounted to 60.3 thousand tons, output of railway products – 12.2 thousand tons, pipes – 39.4 thousand tons.

At the same time it is noted that in January-June the company increased sales of round steel billets by 124.5% – up to 20.6 thousand tons, railway products – by 8.5%, to 104.5 thousand tons and reduced the sales of pipes by 25, 4% – up to 236.8 thousand tons.

It is also reported that pipes in January-June of this year were sold in Europe (32%), the MENA region (24%), Ukraine (17%), on the American continent (12%), the CIS (12%) and in other regions (3%). Railway products – in the CIS (43%), Europe (34%), Ukraine (15%), the MENA region (5%), the American continent (2%) and in other regions (1%).

In the commentary of Interpipe, it is explained that sales of pipe products in June of this year remained vulnerable and prone to the negative consequences of the COVID-19 pandemic and the global oil and gas crisis. At the same time, sales of oil and gas pipe (OCTG) recovered slightly – an increase of 9.7% versus June 2019 – amid higher supplies of already reduced volumes to Turkey, while sales to other regions decreased. Oil prices, as well as the balance of supply and demand, showed some positive dynamics during June, but demand for OCTG in the US and other regions is far from recovering, and markets remained depressed – sales fell 55.8% year on year in six months 2020.

Line pipeline sales were almost at the level of the previous year (minus 0.6% versus June 2019) due to persistently low demand, but with some signs of recovery in the US and MENA region .

Sales of general-purpose pipes showed some recovery (up 111.1% versus June-2019) amid higher demand from domestic and Belarusian buyers, as more equipment manufacturers resumed their work after blockages .

The 8.6% growth in sales of welded pipes versus June 2019 was driven by deferred demand after limited sales in previous months and depletion of stocks in Ukraine and recovery in sales in Europe.

Sales of railway products in June 2020 fell by 42.8% versus June 2019 after the restoration of the antidumping duty of 34.22% in the Customs Union (CU) on railway wheels from Ukraine, starting from June 2, 2020 … In fact, sales in the TS fell more than 13 times in a month, but this was partially offset by an increase in sales to Ukrainian private companies and an increase in supplies to other CIS countries.

As reported, TCC Interpipe in 2019 reduced steel smelting by 4.2% compared to the previous year – up to 854.5 thousand tons, including 57.1 thousand tons produced in December. At the end of the year, the output of pipes decreased by 13.3% – to 587 thousand tons (in December – 32.1 thousand tons), but the production of railway products increased – 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 (in December – 0.7 thousand tons), railway products – by 7%, to 202.1 thousand tons (18.2 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, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries around the world through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2019, Interpipe sold 823 thousand tons of finished products, including 202 thousand tons of railway products. Sales of railway products are carried out under the KLW brand.

Interpipe employs 11 thousand people. In 2019, the company transferred UAH 3.25 billion to the budgets of all levels.

The company has five industrial assets: Interpipe Nizhnedneprovsky Pipe-Rolling Plant (NTZ), Interpipe Novomoskovsk Pipe Plant (NMPP), ” Interpipe Niko-Tube, Dnepropetrovsk Vtormet and the Dneprostal electric steel-making complex under the Interpipe Steel brand.

The ultimate owner of Interpipe Limited is Ukrainian businessman Victor Pinchuk and his family members.

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