Interpipe reduced steel production by 19.8%

The international vertically integrated pipe and wheel company (TKK) “Interpipe” in January-July this year reduced steel production by 19.8% compared to the same period last year – to 450.1 thousand tons.

As reported in the monthly report of the company on Monday, over seven months the production of pipes decreased by 32.5% – to 267.6 thousand tons, the production of railway products increased by 0.5% – to 115.9 thousand tons.

In July, steel smelting amounted to 57 thousand tons, the output of railway products – 14.1 thousand tons, pipes – 34 thousand tons.

It is noted that the company in January-July, it increased sales of round steel billets by 75.2% – to 22.7 thousand tons, railway products – by 4.2%, to 119.5 thousand tons and reduced sales of pipes by 24% – to 275, 2 thousand tons.

It is also reported that pipes in January-July of this year were sold in Europe (31%), the MENA region (24%), Ukraine (18%), on the American continent (12% ), The CIS (12%) and in other regions (3%). Railway products – in the CIS (43%), Europe (35%), Ukraine (14%), the MENA region (4%), the American continent (3%) and other regions (1%).

In the commentary of Interpipe it is noted that in July 2020, the dynamics of sales of pipe products remained negative: total sales of pipe products decreased by 20.6% compared to July 2019, and by 24% in 7 months of 2020 to 7 months. -2019, still negatively impacted by the COVID-19 pandemic and the global oil and gas crisis.

At the same time, OCTG pipe sales continued to recover for the second month in a row (up 107.2 % in July 2020 versus July 2019) amid growing sales to the MENA region due to improved expectations for global oil demand. But the overall sales trend for seven months of 2020 remained in the negative zone – “minus” 52.6% compared to the same period last year.

Pipeline sales in July fell by 42% against July-2019 due to a decrease in supplies to the countries of the Middle East, North Africa and the United States, however, in general, following the results of seven months, they remained practically at the level of the same period last year. The sharp decline in sales in the Middle East and North Africa region recorded in July was due to the procurement schedules for some projects. At the same time, traders in the US market made massive purchases in June and were in no hurry to build up inventories until the prospects for oil demand became clearer.

Sales of general pipes in July fell by 38.2% versus July- 2019 after the completion of large procurement tenders in the CIS in early June.

Sales of welded pipes remained quite stable compared to last year (up 0.2% compared to July-2019): sales in the USA and the CIS were offset by an increase in sales in Ukraine and Europe.

Sales of railway products in July increased by 41.7% compared to July 2019, mainly on the background of a slight recovery in supplies to the Customs Union.

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 pipe sales 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 Nizhnedneprovsk Pipe-Rolling Plant (NTZ), Interpipe Novomoskovsk Pipe Plant (NMPP), ” Interpipe Niko-Tube, Dnepropetrovsk Vtormet and the Dniprostal 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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