Interpipe pipe output drops 8.7% in 10M19

Pipe production at Ukraine’s largest producer
Interpipe (INTHOL) was 1.31 kt per day (or 40.5 kt per month) in October, a
7.3% m/m drop, according to Concorde Capital’s analysis of a Nov. 25 news
report by Interfax-Ukraine.

Interpipe Niko Tube output jumped 14.0% m/m to 0.75 kt
per day in October. Interpipe NTRP pipe production lost 16.8% m/m to 0.35 kt
per day. Interpipe NMPP output plunged 37.8% m/m to 0.20 kt per day.

In 10M19, Interpipe’s pipe production was 589.6 kt
(1.94 kt per day), or 8.7% less yoy.

In a separate news report, Interfax-Ukraine said that
Interpipe Steel’s output of crude steel was 1.39 kt per day in October, a 24.3%
m/m plunge. The 10M19 steel output at Interpipe Steel was 733 kt, a 10.9% yoy
loss.

Dmytro Khoroshun: The pipe
production daily rate at Interpipe has decreased m/m every month during
April-October, with the October rate (1.31 kt per day) reaching 47% below the
March level (2.48 kt per day).

As a result of Interpipe’s weak performance in the
recent months, we are downgrading our estimate of Interpipe’s 2019 pipe
production to 660-700 kt (1.81-1.92 kt per day), down 8-13% yoy.