21 October 2021
Railway product sales volume at Ukraine’s largest pipe
and railway wheel producer Interpipe (INTHOL) was 17.1 kt in September, a 17.0%
m/m increase, according to the company’s monthly operational report released on
Oct. 20. Pipe sales added 8.3% m/m to 60.9 kt, while external billet sales
jumped 66.1% m/m to 6.0 kt.
The m/m increase in pipe sales in September was due to
several factors. First, OCTG pipe sales jumped 20.3% m/m to 23.0 kt amid
growing demand across all key markets, the report said. Second, line pipe sales
(+4.1% m/m to 30.4 kt) were supported by robust demand globally. Third,
mechanical pipe sales rose 19.4% m/m to 2.9 kt mainly due to higher shipments
of cold-rolled pipes to Saudi Arabia. However, welded pipe sales dropped 15.8%
m/m to 4.6 kt after a surge last month.
The m/m gain in railway product sales was fueled by
higher sales in Ukraine and Europe, according to the report.
During 9M21, Interpipe’s pipe sales added 16.8% yoy to
419.6 kt, driven by a 98.6% yoy surge for OCTG pipes to 127.0 kt. Line pipe
sales added 6.5% yoy to 235.5 kt, while sales of mechanical pipes advanced
35.8% yoy to 17.9 kt. However, welded pipe sales plunged 35.7% yoy to 39.3 kt
in 9M21.
Railway product sales dropped 13.1% yoy to 128.1 kt in
9M21, driven by a 17.6% loss for wheels to 105.7 kt, partially offset by a
25.8% increase for wheelsets to 18.3 kt.
Interpipe boosted its external billet sales 80.9% yoy
in 9M21 to 47.5 kt.
Ukraine’s share of Interpipe’s pipe sales in 9M21
dropped to 18%, or 4pp less than in 2020. At the same time, the share of sales
in the Americas rose 8pp to 19%, the share of CIS countries gained 1pp to 12%,
and MENA’s share was unchanged at 24%. Europe’s share in pipe sales dropped 4pp
to 25%.
The share of Interpipe’s railway product sales in
Ukraine in 9M21 dropped 3pp from 2020 to 11%, while the share of sales to
Europe retreated 2pp to 33%. The share of sales to CIS countries dropped 2pp to
41%. The share of sales in the Americas added 2pp to 5%, and sales in other
countries jumped 5pp to 6%.
Regarding production volumes, which might be
indicative of sales volumes in the coming months, Interpipe’s pipe production
rose 10.4% m/m to 66.3 kt in September, and particularly its production of OCTG
pipes jumped 20.4% m/m to 26.3 kt. Its railway product output slid 1.7% m/m to
14.9 kt in September, while steel production inched up 1.9% m/m to 96.9 kt.
Dmytro Khoroshun: The
strength of Interpipe’s OCTG sales might persist amid the global energy crunch,
which is positive.
However, it remains to be seen whether pipe selling
prices have been rising as well, while both electricity and natural gas prices
that contribute to Interpipe’s costs have very likely been increasing in the
recent weeks.
The railway product sales was also strong in
September, although we think that the monthly sales volumes are not likely to
exceed much the 15 kt level that Interpipe expects
for the near future.