Ukraine increased pipe production by 19% in 9M

Member companies of Ukrtruboprom ramped up production of pipes by 29%

In January to September, Ukrainian pipe companies increased pipe production by 18.6% to 746.2 thousand tons compared to the same period in 2020. In September alone, they produced 93.9 thousand tons of pipes, according to Interfax-Ukraine citing the updated statistics of Ukrtruboprom.

In 9M, Ukrtruboprom member companies increased pipe production by 29% to 518.1 thousand tons compared to January–September 2020. In September, the Association’s member companies ramped up production by 54.9% to 78.4 thousand tons against September 2020.

“Seamless pipe production is on the rise due to the favorable environment in foreign markets. The rise in the global oil and gas prices creates a stable demand for oil and gas products. In addition, production of welded pipes is gradually recovering,” said Georgiy Polsky, Ukrtruboprom’s Director General.

He noted that the rise in energy prices in Ukraine in autumn began to have a significant impact on the production costs of pipe plants. Moreover, supplies of scrap, the main raw material for the production of seamless pipes in Ukraine, remain troubled.

In January–September 2021, Interpipe companies produced:

• Interpipe NMPP — 41.6 thousand tons (-29% against January–September 2020);
• Interpipe Niko Tube — 423.3 thousand tons (+91%);
• Interpipe NTRP — n/a.

According to Interfax-Ukraine, citing its own sources, since April this year, Interpipe NTRP’s pipe-rolling assets officially are part of Interpipe Niko Tube.

In January–September, Dniprovskiy Pipe Works was idle. Centravis cut production by 5.8% to 13.1 thousand tons compared to 9M 2020. Production at Trubostal grew by 25% to 1.5 thousand tons.

In January to September, companies which are not members of Ukrtruboprom showed the following results:

• Ilyich Iron and Steel Works — 103 thousand tons (+7.5% against January–September 2020);
• Kominmet — 125.1 thousand tons (+7.5%).

In 2020, Ukraine cut production of pipes by 16.3% to 854 thousand tons y-o-y.