Interpipe pipe sales plunge 46% m/m in January
Railway product sales volume at Ukraine’s largest pipe and railway wheel producer Interpipe (INTHOL) was 9.8 kt in January, a 41.5% m/m dive, according to the company’s monthly operational report released on Feb. 18. Pipe sales plunged 45.5% m/m to 43.0 kt, while external billet sales lost 41.6% m/m to 4.3 kt.
The m/m decrease in pipe sales in January was driven by drops for OCTG pipes to 14.8 kt (-58.0%) and line pipes to 20.5 kt (-40.5%). Interpipe mentioned seasonality and peak deliveries at the end of 2021 as the reasons for the drops.
The m/m dive in railway product sales in January was driven by a 46.7% drop for wheels to 7.5 kt.
Ukraine's share of Interpipe’s pipe sales in January was 21%, or 2pp more than in 2021, while Europe’s share was 29%, or 5pp higher. The share of sales in the Americas was the same as in 2021 at 21% and the share of CIS countries dropped 4pp to 7%. MENA's share was unchanged at 22%.
The share of Interpipe’s railway product sales in Ukraine in January jumped 15pp from 2021 to 31%, while the share of sales to Europe surged 13pp to 46%. The share of sales to CIS countries plunged 20pp to 16%. The share of sales in the Americas lost 4pp to 2%, and sales to other countries was unchanged at 6%.
Regarding production volumes, Interpipe’s pipe output lost 16.5% m/m to 52.7 kt in January, while its railway product output dropped 13.3% m/m to 13.8 kt and steel production slid 0.9% m/m to 93.0 kt.
Dmytro Khoroshun: Interpipe’s sales of both pipes and railway products should rebound m/m in February.
A rebound is expected on the basis of market sentiments and the fact that January’s m/m drops in production volumes for both pipes and railway products were smaller than the drops for sales volumes, as Interpipe mentioned in its release.