Interpipe railway product exports up 23% m/m in April

Ukraine’s exports of railway products amounted to 14.0
kt per month in April, a 23% m/m jump but 10% below the average 2020 level,
according to Concorde Capital’s analysis of Ukrstat’s goods exports data.

 

Exports amounted to 13.5 kt per month in 4M21 (54.2 kt
for the period), 13% less than the 2020 average of 15.6 kt per month.

 

Exports to Russia amounted to 0.2 kt in April, 12%
less m/m and 96% less than the 2020 average of 5.0 kt per month.

 

Exports to Belarus amounted to 7.6 kt in April, a 60%
m/m jump and 2.5x more than the 2020 average of 3.0 kt per month.

 

The average export price for the railway products
dropped 10% m/m in April to USD 1,391/t.

 

Ukraine’s largest railway wheel producer is Interpipe
(INTHOL), which in 2020 exported 165 kt of railway products (13.8 kt per month).

 

Recall, Russia banned imports of railway
products from Ukraine from early February.

 

Dmytro Khoroshun: Interpipe
might be continuing to pursue successfully exports to Belarus, which is
partially alleviating the effects of Russia’s ban on its sales volumes.

 

However, the m/m price drop in April confirms our
expectations that the EBITDA (before reallocation from the steel segment) of
Interpipe’s railway product segment will drop substantially yoy in 2021,
possibly by as much as 40-50%.