industrial company in Ukraine INTERPIPE in 2019 decreased sales of tubular and railway products in tons by 7%. Total sales amounted to 798 thousand tonnes, the Share of export in the sales structure amounted to 76%, while the market share of Ukraine decreased from 28% to 24%.
sales of tubular products decreased by 11% compared to the 2018 and amounted to 595 thousand tonnes amid falling demand on the global market in the second half of 2019.
the Supply pipes to the Ukrainian market declined by 18% compared to 2018 and reached 147 thousand tons In particular, last year the volume of sales to the "ukrgazvidobuvannya" fell by 67% by 2018 in connection with the revision of the state-owned drilling programs for new wells. At the same time, the supply of private gas producers partly offset the fall in consumption in the public sector.
European customers INTERPIPE has supplied 146 thousand tons of seamless and welded pipes (-16% by 2018). The decline in sales is connected mainly with the introduction of the European Commission import quotas, which were not taken into account the capacity of the new JV Vallourec Niko Tube.
Total North and South America INTERPIPE in 2019 sold 140 thousand tons of linear and threaded pipe (+13% by 2018). In the second half of the year, the company began to drastically reduce sales to the U.S. market in connection with the renewal of anti-dumping duty at the rate of 7.5% (in addition to the 25% duty on all steel imports). Total fees – 32.5 per cent – has become prohibitive for the Company.
In the middle East INTERPIPE increased implementation of 27%, to 102 thousand tons, due to sales of OCTG pipes for oil and gas. This became possible due to development of a wide range of premium products.
Sales in CIS countries last year plummeted 46%, to 61 million tonnes, against the introduction of the Russian Federation a full embargo on import of pipes from Ukraine and falling demand in other countries of the former Soviet Union.
sales of railway products – wheels, tyres, axles and wheel pairs in 2019 increased by 8% compared to the 2018 year and amounted to 203 thousand tons
sales of railway products to the European market in 2019 reached a new high, amounting to 52 thousand tonnes (+27% by 2018). INTERPIPE has taken a leading position in the market of truck wheels and intends to enter the market of passenger wheels EU. In 2019, the Company increased the supply of wheelsets from 10.5 to 14.7 thousand.
Sale at the markets of the CIS countries in 2019 showed a significant increase by 26%, to 93 thousand tonnes At the same time in Ukraine there was a decline: the fall in sales amounted to 25%, to 45 thousand tons, in connection with the suspension of "Ukrzaliznytsya" construction of freight cars and, accordingly, purchases of railway wheels.
the production of round steel billets in 2019 amounted to 854,5 million tonnes, which is 4.2% lower than in 2018. A key factor in ensuring the production of raw materials was the renewal of the export duty. Almost all of the produced amount of steel was implemented on the own factories of INTERPIPE. Third-party consumers shipped 23.7 thousand tons of steel (22.8 per cent).
Denis Morozov, Director for Finance and Economics INTERPIPE:
– the Past year has been difficult for the Company, but has produced good results and has laid the Foundation for development.
In 2019, Ukrainian metallurgists to fully feel the impact of the trade wars in the world. Developed countries protect their markets and producers by any means, thus closing the access to the importers. In such circumstances, the strategy INTERPIPE lies in the development of complex and niche products. For this we constantly invest in the most modern equipment.
About:
INTERPIPE is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company's products are marketed in more than 80 countries through a network of sales offices located in key markets of Ukraine, the Middle East, North America and Europe.
INTERPIPE has 12 thousand employees.
