The demand for threaded pipes (OCTG) in Ukraine has collapsed, and for the pipes that Naftogaz purchased, tends to zero. This was stated in Interviews
“The largest contribution to the decline was made by the state-owned company Ukrgazvydobuvannya, which greatly reduced the volume of new wells drilling. In addition, the market for general-purpose line pipes also fell against the background of a decline in the country's GDP, "Morozov said.
The global pipe market is going through a crisis this year, mainly for two reasons: a sharp decline in world oil prices and the COVID-19 coronavirus pandemic. In the US, many oil companies have gone bankrupt, leading to a drop in pipe demand. At the same time, they practically stopped drilling new wells in Ukraine.
The situation is aggravated by the ongoing trade war, which the US and the EU continue to protect their manufacturers. Interpipe continues to sue the European Commission over the pipe duty rate, and is also taking part in a new case in the United States.
“We are trying to increase our presence in the market of the Middle East countries, in this market there is a lot of competition with Chinese suppliers, but we have better quality, better production times,” Morozov noted.
Interpipe is a metallurgical company specializing in the production of pipes and wheels for railway transport. Registered in 1990 in Cyprus. Billionaire Victor Pinchuk is considered the main owner. The main production activity of Interpipe is carried out in Ukraine, the headquarters is located in the city of Dnipro.