In January 2022, the operating and trading performance of the Ukrainian industrial company Interpipe in the railway products and pipes segments decreased due to seasonality compared to the previous month. However, the steel pipe segment performed very well year-on-year across the board.
Total sales of pipe products increased by 53.2% compared to the same period last year. Sales of oil and gas OCTG pipes in January up 58.0% month-on-month after peak shipments at the end of 2021. However, the 91.4% annual growth reflects robust demand and strong fundamentals in the oil market.
In January, due to the extremely high demand for hydrocarbons in the world, the Ukrainian industrial company Interpipe increased sales of OCTG pipes with premium and semi-premium connections by almost three times. The upward trend continues as the market continues to be in short supply.
Sales of seamless pipe decreased by 12.0% compared to December mainly due to lower supply of boiler pipe to the domestic market and cold drawn pipe to the Middle East. Sales of welded pipes decreased by 18.0%. However, compared to January 2021, sales more than doubled.
In January, sales of Interpipe's railway products decreased by 41.5%. Strong domestic demand and sales volumes are expected to recover in February. On an annualized basis, sales decreased by 41.1%, including due to the high base effect of January 2021, as there was not yet an embargo on the import of Ukrainian railway products, which was introduced by the Russian Federation later in February 2021.
Nevertheless, sales of wheelsets in foreign markets, mainly in the European Union, continue to increase. So, in January, these figures increased by 11%. Since the commissioning of the new wheel set shop is almost completed, Interpipe is counting on an even more powerful result next month.