Interpipe Reports Decline in Production & Sales in 2020
Ukrainian integrated pipe and wheel company Interpipe reduced steel output by 11.2% YoY to 758,700 tonnes in 2020 while production of pipes decreased
Ukrainian integrated pipe and wheel company Interpipe reduced steel output by 11.2% YoY to 758,700 tonnes in 2020 while production of pipes decreased by 20.9% YoY to 464,000 tonnes driven mostly by a 52.2% plunge for OCTG pipes to 83.2 KT and a 28.0% drop for welded pipes to 80.1 KT. The YoY decrease in pipe sales in 2020 was driven by a 1H20 drop in oil prices. A bright spot was an increase in the company’s pipe sales in the Middle East to customers in Turkey, the UAE and Qatar
The production of railway products decreased by 8.3% YoY to 190,600 tonnes in 2020 driven mostly by an 8.5% loss for wheels to 166.4 KT and partially offset by a 32.0% jump for wheel sets to 19.5 KT. Interpipe boosted its railway product sales to Europe by 29% YoY to 67 KT in 2020 by expanding sales of new products in the cargo segment and by entering the passenger segment, in particular, for the high-speed Deutsche Bahn trains
Ukraine's share of Interpipe’s pipe sales in 2020 dropped 3pp to 22% from 2019, and the share of sales in the Americas plunged 13pp to 11%. At the same time, Europe's share in pipe sales gained 5pp to 29%, and MENA's share rose 9pp to 24%. The share of CIS countries in 2020 climbed 1pp to 11%.
The share of Interpipe’s railway product sales in Ukraine in 2020 slid 8pp to 14% from 2019, while the share of sales to Europe gained 9pp to 35% and the share of sales to CIS countries slid 2pp to 43%.