Pipe companies of Ukraine reduced product exports by 1.4% m/m in April

The revenue of Ukrainian pipe exporters for the month increased by 1% m/m

In April 2023, the pipe companies of Ukraine reduced the export of products by 1.4% compared to March 2023 – to 38.1 thousand tons. Revenue from the export of pipes for the month decreased by 1% m/m – up to $68.51 million. This is evidenced by State Customs Service’s data.

Compared to April 2022, in April 2023 steel enterprises of Ukraine increased revenue from the sale of pipes by 61%. It is impossible to calculate the difference in export volumes in natural terms due to the lack of data.

In January-April 2023, Ukraine shipped 130.13 thousand tons of pipes worth $240.85 million for export. Revenue from the sale of products abroad increased by 22.8% compared to the same period last year, and export volumes increased by 10.4%.

In January-April 2023, Ukraine exported the most seamless pipes, tubes and hollow profiles (Nomenclature 7304) – 108.1 thousand tons for $222.02 million. In April, 33.13 thousand tons of such products were shipped (+4.5% m/m) for $63.98 million (+0.7% m/m).

Also, during January-April, 21.36 thousand tons of other pipes, tubes and hollow profiles made of ferrous metals (Nomenclature 7306) worth $18.28 million were shipped abroad, in particular, in April 4.84 thousand tons (-27.1% m/m) for $4.45 million (-19.3% m./m.).

The main consumers of Ukrainian-made pipes are Germany, the USA, Italy and Poland.

In January-March 2023 Ukrainian pipe companies of Ukrtruboprom association produced 126.5 thousand tons of pipes, which is 5.9% more compared to the same period in 2022. In March, domestic pipe enterprises produced 57.1 thousand tons of products (+44.6% m/m).

According to Georgy Polsky, CEO of the association, it is not necessary to talk about pre-war production volumes in the pipe industry. However, due to the stable conditions of foreign markets, the output of pipes is increasing every month.

In 2022 the pipe companies of Ukraine produced 608 thousand tons of pipes, which is 38% less compared to 2021. Last year, the enterprises of the association Ukrtrubprom reduced the production of pipe products by 37.9% y/y – to 449.7 thousand tons.

The industry’s production figures were affected by logistical problems, as well as strikes on energy infrastructure facilities and, as a result, power supply restrictions at the end of last year. As a result, pipe companies exported products through western border crossings and European seaports. This led to an increase in logistics costs by 2-3 times and affected the cost price of pipe products.

As a result, the export of pipes from Ukraine decreased in 2022 by 33.6% year-on-year – to 400.4 thousand tons. In monetary terms, exports for this period amounted to $688.5 million, which is 10.1% less than in 2021.

Currently, the situation with energy supply has stabilized, and the demand for products is gradually increasing, which reflects the increase in the volume of pipe exports.

The main producers of pipes in Ukraine are Interpipe NIKO TUBE LLC, Interpipe NTRP, DMZ Kominmet, Ilyich Iron and Steel Works of Mariupol, Interpipe NMPP, Trubostal, Centravis, Dnipropetrovsk Pipe Plant and Slavsant.

Source: https://gmk.center/ua/