The monthly revenue of Ukrainian pipe exporters decreased by 6.5% m/m

In May 2023, the pipe companies of Ukraine reduced the export of products by 2.1% compared to May 2023 – to 37.26 thousand tons. Revenue from the export of pipes for the month decreased by 6.5% m/m – to $64.05 million. This is evidenced by State Customs Service’s data.

Compared to May 2022, in May 2023, pipe enterprises of Ukraine increased revenue from product sales by 10.8%. Export volumes increased by 10.8% y/y.

In January-May 2023, Ukraine exported 167,396 thousand tons of pipes worth $304,899 million. Revenue from the sale of products abroad increased by 19.3% compared to the same period last year, while export volumes decreased by 17.8%. .

In January-May 2023, Ukraine exported the most seamless pipes, tubes and hollow profiles (Nomenclature 7304) – 137.99 thousand tons for $279.32 million. In May, 29.89 thousand tons of such products were shipped (+16.2% y/y) for $57.3 million (+11.8% y/y).

Also, during January-May, 28.54 thousand tons of other pipes, tubes and hollow profiles made of ferrous metals (Nomenclature 7306) worth $24.87 million were shipped abroad, in particular, in May – 7.19 thousand tons (+63% y/y) for $6.59 million (+4.6% y/y).

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

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 Ukrtrubprom association 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. Pipe companies exported products through western border crossings and European seaports, which increased 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, but a new problem has appeared for steel enterprises located in the Dnipropetrovsk region – the undermining of the Kakhovska HPP by Russian troops. In particular, ArcelorMittal Kryvyi Rih suspended production of steel and rolled products to reduce water consumption in critical conditions. Only blast furnace and coke-chemical production, as well as Mining, will remain in operation. NFP reduces production volumes due to the need to reduce water consumption for the production process. Centravis continues to work at full capacity despite the shelling of Nikopol and the consequences of the shallowing of the Kakhovsky Reservoir.

The main producers of pipes in Ukraine are Interpipe NIKO TUBE LLC, Interpipe NTZ, DMZ Cominmet, Ilyich Iron and Steel Works, Interpipe NMTZ, Trubostal, Centravis, Dnipro Pipe Plant, Slavsant.