Production of steel and pipes declined as well
In January–November 2020, Ukrainian Interpipe decreased production of railway products by 7.5%, to 174 thousand tons compared to the same period of the previous year, according to Interfax-Ukraine.
Production of steel in 11M dropped by 12.6% to 696.9 thousand tons and pipes by 23.3% to 425.6 thousand tons.
In November, the Company produced 55.6 thousand tons of steel, 13 thousand tons of railway products, 37.5 thousand tons of pipes.
Sales of round steel billets in January–November increased by 31.4% to 30.3 thousand tons, while sales of railway products fell by 4.6% to 175.5 thousand tons. Sales of pipes decreased by 21.7% to 425.8 thousand tons.
“In November, sales dynamics for the whole range of the Company’s products were quite unstable amid the still uncertain pace of recovery of the key markets and economies,” according to the post.
The main sales markets for railway products included the CIS (43%), Europe (35%), Ukraine (13%), the MENA region (5%). The main sales markets for pipes were Europe (30%), the MENA region (24%), Ukraine (21%), 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.
As GMK Center reported earlier, in January–September 2020, Interpipe reduced its revenues by 23% to $660 million compared to the same period of the previous year. The Company’s EBITDA increased by 8% to $216.4 million, while its capital investments fell by 34% to $27 million.