Interpipe pipe output rises 16% in 11M18

Pipe production at Ukraine’s largest producer
Interpipe (INPIP) was 1.73 kt per day (or 52.0 kt per month) in November, a
17.5% m/m plunge in average daily terms, according to Concorde Capital’s analysis
of a Dec. 20 news report by Interfax-Ukraine.

Interpipe NTRP pipe production plunged 28.0% m/m to
0.51 kt per day in November. Interpipe NMPP output dropped 15.9% m/m to 0.28 kt
per day. Interpipe Niko Tube output lost 10.8% m/m to 0.94 kt per day.

In 11M18, Interpipe’s pipe production was 697.2 kt, or
16.3% more yoy.

In a separate news report, Interfax-Ukraine said that
Interpipe Steel’s output of crude steel was 2.30 kt per day in November, a
16.1% m/m decrease. The 11M18 steel output at Interpipe Steel was 892 kt, a
14.5% yoy gain.

Dmytro Khoroshun: We expect the company will produce 0.75 mmt of pipes in 2018, about 14%
yoy higher. However, the recent plunge in Interpipe pipe production volumes,
especially against the backdrop of the recent oil price collapse, portends
lower capacity utilization in 2019.