Interpipe increased steel production by 19% in January-July

Ukrainian industrial company “Interpipe” in January-July this year increased steel production by 19% compared to the same period last year – up to 535.4 thousand tons.

As reported in the monthly report of the company on Thursday, for seven months of 2021, pipe production increased by 18.5% – to 317.1 thousand tons, the production of railway products decreased by 15.9% – to 97.5 thousand tons .

In July, steel smelting amounted to 78.1 thousand tons (in June – 89.7 thousand tons), pipe production – 55 thousand tons (55.7 thousand tons), railway products – 15.5 thousand tons (14 thousand tons).

It is also reported that pipes in January-July of this year were sold in Europe (27%), the MENA region (25%), Ukraine ( 17%), in the American continent (16%), the CIS (12%) and in other regions (3%). In July, pipes were sold in Europe (24%), Ukraine (15%), the MENA region (19%), the CIS (16%), the American continent (24%) and other regions (2%).

Railway products for seven months of 2021 were sold in the CIS (43%), Europe (33%), Ukraine (10%), the MENA region (3%), the American continent (6%) and other regions ( five%). In July – in the CIS (36%), Europe (38%), Ukraine (18%), the MENA region (1%), the American continent (2%) and other regions (5%).

According to Interpipe’s commentary, in July of this year, the company’s stable growth in operating and trading indicators was interrupted for all key products as a result of seasonality and delivery schedules under contracts with major buyers. At the same time, the total sales of pipe products decreased by 17.6% compared to the previous month – to 48.8 thousand tons, but in 7 months-2021 increased by 11.3% versus the same period last year – to 306.2 thousand tons. tons.

Sales of pipes in the oil and gas segment (OCTG) in July decreased by 2.7% versus June – to 18.2 thousand tons. For seven months of 2021, sales volumes increased by 66.1%, to 88.3 thousand tons, as evidence of optimistic sentiment in the global oil and gas market.

Sales of line pipes in July decreased by 27.3 % by June, to 25.7 thousand tons due to the formation of consignments and delivery schedules to key customers in the MENA region with the booking of sales for the dispatch of 2 ships in early August. Moreover, for 7 months. growth amounted to 7.2%, to 176.2 thousand tons.

Sales of general-purpose pipes (so-called mechanical pipes) in July decreased by 2.7% versus June, to 2 thousand tons against the backdrop of continued decline in domestic supplies after a peak in May, reaching its lowest level this year. In January-July, sales of such pipes amounted to 12.5 thousand tons, with an increase of 17.9% versus seven months of 2020.

The decline in sales of welded pipes in July slowed down to 5.7% versus June, to 2 , 9 thousand tons, after a slight increase in supplies to the domestic market, which partially offset the seasonal drop in sales in Europe. However, sales in seven months of 2021 fell by 37.8% year-on-year, to 29.1 thousand tonnes, under pressure from high market prices for hot-rolled steel (HRC) in the first half of this year.

Sales of railroad products in July decreased by 15.6% versus June, to 13.2 thousand tons, mainly due to a looser contract delivery schedule under the contract with the Indian National Railway Operator this month. At the same time, the company’s management expects to return to a stable monthly sales level of 15 thousand tons in August, taking into account 15.5 thousand tons of railway products manufactured in July. Over 7 months-2021, sales of railway products decreased by 19.4%, to 96.4 thousand tons.

As reported, Interpipe in 2020 reduced steel production by 11.2% compared to the previous year – to 758.7 thousand tons, pipe production decreased by 20.9% – to 464 thousand tons, production of railway products – by 8.3%, to 190.6 thousand tons.

Pipes in 2020 were sold in Europe (29%), the MENA region (24%), Ukraine (22%), the CIS (11%), the American continent (11%) and other regions (3 %). Railway products last year were sold in the CIS (43%), Europe (35%), Ukraine (14%), the MENA region (4%), the American continent (3%) and other regions (1%).

Interpipe in 2020 reduced its net profit by 4.2 times compared to the previous year – to $ 195.116 million from $ 828.656 million, revenue decreased by 22.9% compared to 2019 – to $ 865.131 million The company received $ 273 million in EBITDA, which is 6% more than in the previous year. Capital investments in 2020 decreased by 26% to $ 44 million.

Interpipe is a Ukrainian industrial company that produces seamless pipes and railroad 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 2020, Interpipe sold 662 thousand tons of finished products, including 192 thousand tons of railway products. Railway products are sold under the KLW brand.

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