Interpipe pipe output drops 8% in 11M19

Pipe production at Ukraine’s largest producer
Interpipe (INTHOL) was 1.74 kt per day (or 52.3 kt per month) in November, a
33.4% m/m jump, according to Concorde Capital’s analysis of a Dec. 23 news
report by Interfax-Ukraine.

Interpipe Niko Tube output gained 21.6% m/m to 0.91 kt
per day in November. Interpipe NTRP pipe production jumped 80.4% m/m to 0.64 kt
per day. Interpipe NMPP output slid 4.9% m/m to 0.19 kt per day.

In 11M19, Interpipe’s pipe production was 640.4 kt
(1.92 kt per day), or 8.1% less yoy.

In a separate news report, Interfax-Ukraine said that
Interpipe Steel’s output of crude steel was 1.77 kt per day in November, a
27.4% m/m increase. The 11M19 steel output at Interpipe Steel was 786 kt, an
11.9% yoy loss.

Dmytro Khoroshun: The pipe
production daily rate at Interpipe had finally rebounded in November after a
deep April-October plunge.

We are upgrading our estimate of Interpipe’s 2019
pipe production to 680-700 kt (1.86-1.92 kt per day), down 8-10% yoy.