Ukrainian pipe companies increased production by 10% y/y in 2023

In 2023, Ukrtruboprom enterprises increased pipe production by 10% compared to 2022, to 495.6 thousand tons. This is stated in the press release of the association.

Over the past year, pipe companies have demonstrated multidirectional dynamics. In particular, Interpipe Nico Tube increased its seamless pipe production by 13.3%, while Trubostal reduced it by 42.5%. Ukrtruboizol increased production of electric-welded pipes by 43.8%, while Interpipe NMTZ decreased production by 53.8%. Centravis increased production of stainless pipes by 11.7%. Production of Oscar pipes decreased by 30.5%.

In December 2023, pipe companies produced 42.4 thousand tons of pipes, up 139.5% compared to December 2022. Month-on-month, the figure increased by 14%.

«Last year, Ukraine’s pipe industry demonstrated growth. This happened for the first time in two years of full-scale war, despite the proximity of a large number of production sites to the front line and Nikopol being located directly in the war zone, which is subject to constant shelling. It is logical that we cannot talk about pre-war pipe production volumes: the results of 2023 are only 70% of the level of 2021,» said Georgiy Polskiy, CEO of Ukrtruboprom.

According to him, the production results for the year could have been higher if imported products from China had not entered the domestic market in large volumes, especially when Ukraine produces analogues.

«Chinese pipe products have simply flooded the Ukrainian market, both in the private segment and in tenders of state-owned companies. That is why we were very encouraged to see the creation of the All-Ukrainian platform «Made in Ukraine», which can help change the state economic policy. This platform will help to solve the shameful problem of import penetration, including in public tenders, thanks to the constant direct dialog between the state and business,» he added.

As GMK Center reported earlier, in 2022, Ukrainian pipe companies produced 608 thousand tons of pipes, down 38% compared to 2021. Last year, Ukrtrubprom enterprises reduced their pipe production by 37.9% y/y – to 449.7 kt.

As a result, exports of pipes from Ukraine decreased by 33.6% year-on-year – to 400.4 thousand tons in 2022. In monetary terms, exports for the period amounted to $688.5 million, which is 10.1% less than in 2021.

The main producers of pipes in Ukraine are Interpipe NIKO TUBE LLC, Interpipe NMPP, Trubostal, Centravis.