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Future prospects depend on the efficiency of supply chains

According to the results of the first four months of 2022, Ukrainian pipe plants reduced pipe production by 25%, to 137.7 thousand tons. In April, 18.4 thousand tons of products were produced, which is almost 5.6 times higher than in March, UAprom reported.

April figures show an increasing number of businesses trying to restart production. Although the pre-war level of production has not yet been reached (about 60 thousand tons per month), the dynamics is extremely positive.

The following plants operated in April:

  • Nikopol plant of seamless pipes (growth by 5.5 times);
  • Centravis (+2.5 times);
  • Trubostal (+3.3 times);
  • Novomoskovsky plant (production restart).

The future prospects of the pipe industry will depend on how soon it will be possible to build export supply chains through the EU seaports. At the same time, part of the products of the factories can be delivered to European consumers and by road.

Ukrainian pipe plats in 2021 increased pipe production by 15.1% compared to 2020, to 980.7 thousand tons. Ukrtruboprom plants increased pipe production by 32 .6%, to 710.5 thousand tons.

Earlier GMK Center reported that Centravis launched the production of pipes for the automotive industry and was preparing to increase the supply of its products to the United States after the abolition of the 25% duty on the metal products for one year. Metinvest was also considering the possibility of supplying welded pipes after the liberalization of access for Ukrainian products to the US market.