Interpipe increased steel production by 10.6%

Ukrainian industrial company “Interpipe” in January-May this year increased steel production by 10.6% compared to the same period last year – up to 368.2 thousand tons.

As reported in the company’s monthly report on Friday, for five months of 2021, pipe production increased by 6.4% – to 206.7 thousand tons, the production of railway products decreased by 24.1%, to 68 thousand tons.

In May, steel smelting amounted to 86 thousand tons (in April – 89.2 thousand tons), pipe production – 51.6 thousand tons (48.3 thousand tons), railway products – 13 thousand tons (14.7 thousand tons),

It is also reported that pipes in January-May of this year were sold in Europe (29%), the MENA region (25%), Ukraine (17% ), The CIS (12%), on the American continent (14%) and in other regions (3%). In May, pipes were sold in Europe (24%), Ukraine (14%), the MENA region (30%), the CIS (11%), the American continent (17%) and other regions (4%).

Railway products for five months of 2021 were sold in the CIS (48%), Europe (32%), Ukraine (8%), the MENA region (3%), the American continent (7%) and other regions ( 3%). In May – in the CIS (48%), Europe (29%), Ukraine (7%), the MENA region (2%), the American continent (4%) and other regions (10%).

According to the commentary of Interpipe, in May 2021, the company’s trading activity continued to recover in all key products and markets due to the lifting of quarantine restrictions in the world and the recovery of business activity.

At the same time, the total volume of sales of pipe products of the company in May grew by 9.1% compared to the previous month – up to 48.9 thousand tons, and by 6.1% in 5 months-2021, up to 198.8 thousand tons.

Sales of pipes in the oil and gas segment (OCTG) in May increased by 7.4% versus April to 13.1 thousand tons amid growing demand from the domestic and US markets, stable supplies to Turkey and new orders in the UAE. In the first five months of 2021, sales volumes increased by 29.6%, to 51.9 thousand tons.

Sales volumes of line pipes in May increased by 18.5%, to 29.9 thousand tons against the backdrop of growing demand in Europe and the United States after the relaxation of quarantine measures in these regions. For 5 months-2021, sales increased by 2.1%, to 115.2 thousand tons.

Sales of general-purpose pipes (so-called mechanical pipes) in May increased by 29.8% – to 2.3 kt on the back of increased sales of boiler houses, cold drawn and precision pipes in Ukraine and the CIS countries, and cold rolled pipes in the USA and Brazil. In January-May, sales of such pipes amounted to 8.6 thousand tons with an increase of 30.9% compared to five months of 2020.

Sales of welded pipes in May continued to decline in all markets (a decrease of 35.5% , to 3.7 thousand tonnes), as prices for welded pipes lagged behind the continuing rise in prices on the hot-rolled steel (HRC) market. For five months of 2021, sales of welded pipes decreased by 17.3% – to 23.1 thousand tons.

Sales volumes of railway products in May decreased to a stable monthly level of 15 thousand tons (an increase of 13, 5% versus April) amid high demand from the Customs Union market (Belarus and Kazakhstan) and expanding cooperation with the national railway operator in India. At the same time, in the first five months of 2021, the volume of sales of railway products decreased by 28% – to 67.6 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.

Interpipe employs 11,000 people. In 2020, the company transferred UAH 2.54 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-T”

Leave a Reply

Your email address will not be published.

You may use these <abbr title="HyperText Markup Language">HTML</abbr> tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*