Interpipe wins tender for wheel sales in Ukraine

Ukraine’s largest pipe and railway wheel producer
Interpipe (INTHOL) won a tender for supplying about 4.1 kt of wheels to
Ukrainian Railways (RAILUA), according to a July 28 disclosure in the ProZorro
e-procurement system.

Interpipe NTRP offered to supply the wheels for the
total of about USD 9.7 mln (excl. VAT). The wheels will be supplied by the end
of 2021, according to the tender documentation.

The price for wheels to be sold in relation to this
tender is about USD 2,400/t, or 57% higher than the average price achieved by
Interpipe for all its railway product sales in 1Q21, USD 1,529/t, according to
Concorde Capital calculations.

Recall, earlier in June, Interpipe won another
Ukrainian Railways tender for supplying about 1.75 kt of wheels at
the same price of about USD 2,400/t.

Dmytro Khoroshun: The price
realized by Interpipe at this tender is high, which is positive, but the volume
is small (about 10% of the 39 kt of railway products sold by the company in
1Q21).