Interpipe pipe output rises 6% in 1Q19

Pipe production at Ukraine’s largest producer
Interpipe (INPIP) was 2.48 kt per day (or 77.0 kt per month) in March, a 24.0%
m/m jump, according to Concorde Capital’s analysis of an Apr. 15 news report by
Interfax-Ukraine.

Interpipe NTRP pipe production jumped 29.6% m/m to
0.82 kt per day in March. Interpipe NMPP output inched up 0.6% m/m to 0.38 kt
per day. Interpipe Niko Tube output gained 29.2% m/m to 1.29 kt per day.

In 1Q19, Interpipe’s pipe production was 197.4 kt, or
6.4% more yoy.

In a separate news report, Interfax-Ukraine said that
Interpipe Steel’s output of crude steel was 2.90 kt per day in March, a 33.3%
m/m jump. The 1Q19 steel output at Interpipe Steel was 222 kt, a 3.1% yoy loss.

Dmytro Khoroshun: We tentatively expect the 2019 pipe production volume at Interpipe to
drop 7% yoy to 700 kt, or 1.92 kt per day. However, we note that the 2.48 kt daily
pipe production rate in March was the highest since July 2014, and we see
upside risks to our volume forecast because of recent oil price gains.