Pipe production in Ukraine fell by 38% y/y in 2022

The military aggression of the Russian Federation against Ukraine led to a drop in the key indicators of the pipe market. According to the Ukrtruboprom association, in 2022 the total production of pipes decreased by 38% y/y – to 608,000 tons. Last year, the enterprises of the association directly reduced the output of pipe products by 37.9% y/y – to 449.7 thousand tons.

Production of pipes decreased at all plants. For example, Interpipe Nico Tube and Interpipe NMTZ cut production by 31.1% and 67.1%, respectively, and stainless pipe producer Centravis – by 38.3%. At the same time, the pipe-rolling capacity at Ilyich Iron and Steel Works was destroyed during the hostilities in Mariupol.

The production performance of the industry was affected by logistical problems, as well as strikes on energy infrastructure facilities and, as a result, restrictions on the supply of electricity at the end of 2022. As a result, pipe companies exported products through western border crossings and European seaports. This led to an increase in logistics costs by 2-3 times and affected the cost price of pipe products.

As a result, the export of pipes from Ukraine decreased in 2022 by 33.6% year-on-year – to 400.4 thousand tons. In monetary terms, exports for this period amounted to $688.5 million, which is 10.1% less than in 2021.

At the same time, the import of pipe products also decreased by 59.4% year-on-year – to 38.1 thousand tons. The revenue of importers fell by 53.4% ​​y/y – to $77.9 million.

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Published by
Masha Malonog
Tags: Centravis Interpipe pipe production pipes Укртрубопром

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