Pipe companies of Ukraine in March increased the export of products by 18% m/m

The revenue of Ukrainian pipe exporters for the month increased by 12.6% m/m

In March 2023, the pipe companies of Ukraine increased the export of products by 18% compared to February 2023 – up to 38.59 thousand tons. The revenue from the export of pipes for the month increased by 12.6% m/m – up to $69.21 million. This is evidenced by State Customs Service’s data.

Compared to March 2022, in March 2023 steel enterprises of Ukraine increased revenue from the sale of pipes by 4 times. It is impossible to calculate the difference in export volumes in natural terms due to the lack of data.

In the first quarter of 2023, Ukraine shipped 92.07 thousand tons of pipes worth $172.33 million for export. Revenue from the sale of products abroad increased by 11.8% compared to the same period last year.

In January-March 2023, Ukraine exported the most seamless pipes, tubes and hollow profiles (Nomenclature 7304) – 74.9 thousand tons for $158.03 million. In March, 31.7 thousand tons of such products were shipped (+17% m/m) for $63.52 million (+11.7% m/m).

Also, during January-March, 16.52 thousand tons of other pipes, tubes and hollow profiles made of ferrous metals (Nomenclature 7306) worth $13.83 million were shipped abroad, in particular, in March 6.63 thousand tons (+22.6% m/m) for $5.52 million (+23.1% m/m).

The main consumers of Ukrainian-made pipes are Germany, the USA, Italy and Poland.

As GMK Center reported earlier, in 2022 the pipe companies of Ukraine produced 608 thousand tons of pipes, which is 38% less compared to 2021. Last year, the enterprises of the association Ukrtrubprom reduced the production of pipe products by 37.9% y/y – to 449.7 thousand tons.

The industry’s production figures were affected by logistical problems, as well as strikes on energy infrastructure facilities and, as a result, power supply restrictions at the end of last year. 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.

Currently, the situation with energy supply has stabilized, and the demand for products is gradually increasing, which reflects the increase in the volume of pipe exports.

The main producers of pipes in Ukraine are Interpipe NIKO TUBE LLC, Interpipe NTRP, DMZ Kominmet, Ilyich Iron and Steel Works of Mariupol, Interpipe NMPP, Trubostal, Centravis, Dnipropetrovsk Pipe Plant and Slavsan