Sharp growth of imports from China had a negative impact on the work of Ukrainian pipe companies
In 2023, the enterprises of Ukrtruboprom association increased the production of pipes by 10.2% compared to 2022 – up to 495.6 thousand tons. Last year, the pipe enterprises showed multidirectional production dynamics:
- Ukrtruboisol – growth by 43.8%;
- Interpipe Niko Tube – growth by 13.3%;
- Centravis – growth by 11.7%;
- Oscar – decrease by 30.5%;
- Trubostal – down 42.5%;
- Interpipe NMTZ – decrease by 53.8%.
The industry was able to show a fairly acceptable result last year even though most of its production facilities are located in frontline areas, and its main center – Nikopol – is actually on the front line and is subjected to constant shelling.
«In 2023, Ukraine’s pipe industry demonstrated growth. This happened for the first time in two years of full-scale war. However, the year-end production results could have been higher if imported products from China had not entered the domestic market in large volumes, especially when analogs are produced in Ukraine,» says Heorhiy Polskyy, CEO of Ukrtruboprom association.
Stable energy supply throughout most of last year has largely supported the production dynamics of pipe companies. The limiting factors for the industry are high energy costs, constant shelling of Nikopol and logistical problems. Under the blockade of the Ukrainian-Polish border, pipe companies redirected trucks with steel products for European consumers to road crossings with Slovakia, Romania and Hungary, but this inevitably led to higher logistics costs and longer delivery times. Problems also arose with sales of products to Middle Eastern countries – due to risks to shipping in the Red Sea. Stable operation of the sea corridor in the Black Sea may partially improve the export situation.
Exports of pipe products in 2023 decreased by 11% compared to 2022 – to 356.3 thousand tons. Revenue from pipe exports decreased by 15% YoY to $587.1 mln – The main consumers of Ukrainian-made pipes were Germany, the USA, Romania and Poland.
At the same time, imports of pipe products increased sharply last year – 2.8 times year-on-year, to 105.1 thousand tons. In particular, imports of pipes from China, despite the established trade restrictions, increased 4.7 times last year, to 43 thousand tons.
Source: https://gmk.center
