Interpipe decreased production of railway products by 4.8% in January–October

In January–October 2020, Ukrainian Interpipe decreased production of railway products by 4.8%, to 161.1 thousand tons compared to the same period of the previous year, according to Interfax-Ukraine.

Production of steel in 10M dropped by 13.9% to 641.1 thousand tons and pipes by 24.5% to 388.1 thousand tons.

In October, the Company produced 62.8 thousand tons of steel, 15.4 thousand tons of railway products, 38.3 thousand tons of pipes.

Sales of round steel billets in January–October increased by 37.8% to 29.4 thousand tons, while sales of railway products fell by 2.4% to 162.8 thousand tons. Sales of pipes decreased by 22% to 393.6 thousand tons.

“Sales of railway products slightly decreased because of the weak demand among Ukrainian railway car manufacturers,” according to the post.

The main sales markets for railway products included the CIS (44%), Europe (35%), Ukraine (13%), the MENA region (4%). The main sales markets for pipes were Europe (30%), the MENA region (24%), Ukraine (20%), the CIS (12%).

Interpipe is an international, vertically integrated pipe and wheel company, one of the top 10 global manufacturers of seamless pipes and one of the top 3 manufacturers of wrought wheels.

In Q1 2020, the Company decreased revenues by 8.1% to $251 million y-o-y. The Company’s EBITDA in 5M 2020 amounted to $86 million against $68 million in January–May of 2019.

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