Interpipe pipe output drops 4.9% in 1Q21

Pipe production at Ukraine’s largest producer
Interpipe (INPIP) was 1.87 kt per day (or 58.0 kt per month) in March, a 19.6%
m/m jump, according to Concorde Capital’s analysis of a news report by
Interfax-Ukraine.

Interpipe Niko Tube output jumped 28.8% m/m to 0.99 kt
per day in March. Interpipe NTRP pipe production gained 6.6% m/m to 0.61 kt per
day. Interpipe NMPP output added 21.4% m/m to 0.26 kt per day.

In 1Q21, Interpipe’s pipe production was 124.1 kt
(1.38 kt per day), or 4.9% less yoy.

In a separate news report, Interfax-Ukraine said that
Interpipe Steel’s output of crude steel was 2.56 kt per day in March, a 22.1%
m/m increase. The 1Q21 steel output at Interpipe Steel was 193.2 kt, a 10.8%
yoy loss.

Dmytro Khoroshun: The 4.9%
1Q21 yoy drop in Interpipe’s pipe output was better than the 15-20% plunge we
expected because the company boosted its production in March on top of a 77% m/m jump in February.

Interpipe’s railway product output should be depressed
starting from February-March because of Russia’s ban on imports from Ukraine
starting from early February. Before the ban, Interpipe used to sell about 30%
of its railway products to Russia.