In 9 months, the enterprises of the association Ukrtruboprom produced 376.1 thousand tons of pipes

In January-September 2023, the enterprises of the association Ukrtruboprom increased the production of pipes by 5.1% compared to the same period in 2022 – up to 376.1 thousand tons. This is stated in the association’s press release.

Over the first 9 months of the year, pipe producers showed mixed results. In particular, Interpipe Nico Tube and Ukrtruboizol II increased production of seamless pipes by 8.8% and 26.2%, respectively, while Trubostal reduced production by 54.5%. Centravis increased production of stainless steel pipes by 12.9%, while Interpipe NMTZ decreased production of SAW pipes by 62.9%. Oscar’s pipe production decreased by 25%.

In September 2023, pipe companies produced 36.9 thousand tons of pipes, which is 10.2% less than in September 2022. The figure decreased by 11.7% month-on-month.

«In the first nine months of this year, Ukraine’s pipe industry demonstrated positive dynamics despite constant shelling of production sites located in the frontline areas, particularly in Nikopol. In addition, the problem of stable water supply to pipe production facilities remains unresolved after the Kakhovka hydroelectric power plant dam was blown up and the Kakhovka reservoir was shallowed. The blockade of the Ukrainian-Polish border, which began in early November, was a real «stab in the back» for Ukrainian exporters, particularly of steel pipes. The European direction is the only one left for our business after the start of a large-scale war. Many trucks with pipes are still stuck in traffic, and all delivery deadlines to European customers have been disrupted,» said Georgiy Polskiy, CEO of Ukrtruboprom.

As the strike is likely to expand to other Eastern European countries, almost all pipe plants located in the frontline regions face a shutdown of production facilities as early as mid-December, 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 pipe production by 37.9% y/y – to 449.7 kt.

The industry’s performance was affected by logistical problems, as well as by the damage to energy infrastructure and, as a result, the electricity supply curtailment at the end of last year. As a result, pipe companies exported their products through western border crossings and European seaports. This led to a 2-3-fold increase in logistics costs and affected the cost of pipe products.

As a result, pipe exports from Ukraine decreased by 33.6% year-on-year in 2022 – to 400.4 thousand tons. 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 NTRP, DMZ Kominmet, Ilyich Iron and Steel Works of Mariupol, Interpipe NMPP, Trubostal, Centravis, Dnipropetrovsk Pipe Plant and Slavsant.