Ukrainian pipe companies increased production by 12.6% y/y in Q1

In January-March 2024, Ukrtruboprom enterprises increased pipe production by 12.6% compared to the same period in 2023, up to 142.5 thousand tons. This is stated in the press release of the association.

Almost all pipe companies showed positive dynamics in the first quarter. In particular, Interpipe Nico Tube and Trubostal increased production of seamless pipes by 11.5% and 75%, respectively, Centravis increased production of stainless pipes by 13.8%, Interpipe NMTZ and Ukrtruboizol increased production of electric-welded pipes by 69.2% and 714.3%, respectively. Only Oscar’s production of pipes decreased by 43.2%.

In March, pipe companies produced 48.6 thousand tons of pipes, down 14.9% compared to March 2023. In the monthly dynamics, the figure increased by 17.4%.

«The positive results of Q12024 are primarily due to the low comparison base of the previous year, when the industry operated under strict electricity consumption limits. This resulted in production growth «on paper». In reality, however, the pace of pipe production is slowing down, with a 15% decline in March. The main reason is a significant increase in imports of steel pipes from China to Ukraine at dumping prices, which are supported by Chinese government subsidies,» said Georgiy Polskiy, CEO of Ukrtruboprom.

According to him, the Ukrainian market needs protection from dumped imports from China. The United States and the European Union have recently been actively working to develop and implement protectionist measures that will limit the flow of Chinese goods into their markets.

As GMK Center reported earlier, in 2023, Ukrtruboprom’s enterprises increased pipe production by 10% compared to 2022, to 495.6 thousand tons. The companies showed mixed dynamics.

Last year, pipe exports decreased by 11.8% compared to 2022, to 356.35 thousand tons. Revenues from pipe exports decreased by 15% y/y – to $587.11 million.

The main pipe producers in Ukraine are Interpipe Nico Tube, Interpipe NMTZ, Trubostal, and Centravis.

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