Interpipe cut steel production by 13.9%

The international vertically integrated pipe and wheel company (TKK) “Interpipe” in January-October this year reduced steel production by 13.9% compared to the same period last year – to 641.1 thousand tons.

As reported in the monthly report of the company on Wednesday, over ten months the production of pipes decreased by 24.5% – to 388.1 thousand tons, the production of railway products – by 4.8%, to 161.1 thousand tons.

In October, steel smelting amounted to 62.8 thousand tons, railway products – 15.4 thousand tons, pipes – 38.3 thousand tons.

that in January-October the company increased sales of round steel billets by 37.8% – up to 29.4 thousand tons, but reduced railway products – by 2.4%, to 162.8 thousand tons, sales of pipes – by 22% , up to 393.6 thousand tons.

It is also reported that pipes in January-October of this year were sold in Europe (30%), the MENA region (24%), Ukraine (20%), in the American the continent (11%), the CIS (12%) and in other regions (3%). Railway products – in the CIS (44%), Europe (35%), Ukraine (13%), the MENA region (4%), the American continent (3%) and in other regions (1%).

According to Interpipe’s commentary, in October 2020, total pipe sales declined 30.2% after rising 40.8% a month earlier. At the same time, sales for 10 months of 2020 decreased by 22% compared to sales for 9 months of 2020 on an annualized basis against “minus” 26.6% in the same period last year.

Sales of pipes in the oil and gas segment ( OCTG) continued to decline to 44.3%. At the same time, it is clarified that the decrease in sales was due to the lack of supplies to the MENA region, which is due to the schedules of individual projects. In addition, the decline was due to weak demand in the US market, although there was a slight increase in sales on the domestic market.

“This monthly decline is expected to be reversed in November, due to Ukraine, as evidenced by a 7.9% increase in production in October, “the press release notes.

It is also reported that in October, after a 72.5% increase in September, pipeline sales decreased (minus 44.3%) due to reduced sales in the UAE, where large shipments were scheduled and completed in September.

“We expect monthly sales to recover in December,” the press release says. p>

Sales of general-purpose pipes remained virtually unchanged (+ 0.6%), including amid an increase in the supply of cold-rolled pipes to Europe.

Sales of welded pipes almost returned to the August level (+ 10 , 2%) amid increased sales to Europe (following an increase in demand from the home appliance sector and car manufacturing) amid a decrease in demand from Ukraine and the CIS.

Sales of railway products slightly decreased by 4.5% due to weak demand from Ukrainian railcar manufacturers.

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 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 of the world through a network of sales offices located in 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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