Interpipe pipe output drops 5.6% in 9M19

Pipe production at Ukraine’s largest producer Interpipe
(INPIP) was 1.41 kt per day (or 42.3 kt per month) in September, a 14.5% m/m
drop, according to Concorde Capital’s analysis of an Oct. 15 news report by
Interfax-Ukraine.

Interpipe Niko Tube output dropped 10.3% m/m to 0.66
kt per day in September. Interpipe NTRP pipe production lost 23.1% m/m to 0.43
kt per day. Interpipe NMPP output dropped 9.6% m/m to 0.33 kt per day.

In 9M19, Interpipe’s pipe production was 549.1 kt
(2.01 kt per day), or 5.6% less yoy.

In a separate news report, Interfax-Ukraine said that
Interpipe Steel’s output of crude steel was 1.83 kt per day in September, a
33.1% m/m plunge. The 9M19 steel output at Interpipe Steel was 690 kt, a 6.5%
yoy loss.

Dmytro Khoroshun: The pipe
production daily rate at Interpipe has decreased m/m every month during
April-September, with the September rate (1.41 kt per day) reaching 43% below
the March level (2.48 kt per day).

As a result of Interpipe’s weak performance in the
second and third quarters, we are downgrading our estimate of Interpipe’s 2019
pipe production to 680-725 kt (1.85-2.0 kt per day), down 4-10% yoy.