The Ukrainian industrial company Interpipe of billionaire Viktor Pinchuk reported a sharp decline in sales of pipe products in October 2020. Compared to September, when the company recorded a 40.8% increase in sales, in October they decreased by 30.2% to 34.4 thousand tonnes amid the lack of supplies of oil and gas pipes to the MENA region and weak demand for these products in the US market.
At the same time, the overall dynamics of sales for 10 months of 2020 exceeded the corresponding figure for 9 months of 2020 on an annualized basis: minus 22.0% (up to 393.6 thousand tons) against minus 26.6%.
Oil and gas pipe (OCTG) sales continued to decline and fell 44.3% to 2.9 kt MoM, but remained stable YoY.
This monthly decline is expected to roll out in November, including on the back of higher sales in Ukraine, as evidenced by a 7.9% increase in October production versus September.
Sales volumes of railway products in Interpipe in October slightly decreased by 4.5% to 15.4 thousand tons compared to September amid weak demand from Ukrainian railcar manufacturers, which was offset by an increase in sales of wheelsets in the EU and wheels in countries of the CU region.