Interpipe Vtormet plans to expand the scrap metal sales markets

The company intends to attract new steel plants to its client base

Interpipe Dniprovskyi Vtormet, which is part of the Interpipe pipe and wheel company, intends to expand the scrap metal sales markets by attracting new steel plants to its client base. This is stated in the interim report of the company’s management for 2022.

The main risks for the company in the conditions of war are the unstable economic situation in the country, competition, a sharp change in prices for scrap metal at steel plants, and the lack of raw materials.

“The company’s main measures to reduce risks and protect its activities are the expansion of sales markets by attracting new steel enterprises to the client base, finding new suppliers of raw materials for processing, timely monitoring of prices at Ukrainian plants,” the message says.

In addition, production risks associated with various violations in the production process or in the process of supplying raw materials and materials are noted. Measures to reduce them are control over the production process and increased influence on suppliers through their duplication. There are also commercial risks associated with the sale of products on the commodity market.

“Despite the problems with the procurement of scrap metal, Interpipe Dnipropetrovsk Vtormet strives to maintain the achieved results and increase profits. Although the company’s management personnel believe that they are taking appropriate measures to maintain the stability of work, further instability in the business environment may have a negative impact,” the company summarizes.

As GMK Center reported earlier, in January-June 2022, Interpipe Vtormet processed 87.7 thousand tons of scrap metal. During this period, the company received a net loss of UAH 35.3 million, compared to a profit of UAH 10.2 million in the same period last year. The company’s net revenue for the six months decreased by 39.8% compared to January-June 2021 – to UAH 1.55 billion.

Interpipe Dniprovtormet is one of the largest scrap metal processors in Ukraine. The production capacity of the enterprise is capable of processing scrap in the amount of 1.35 million tons per year. The main consumer of the company’s products is the new high-tech electric steel smelting complex – the Dniprostal metallurgical plant.