In 2010, the Russian steel pipe market may expand by 1.6 percent year on year to 6.3 million mt, the director of the Russian Tube and Pipe Industry Development Fund (FRTP) Alexander Deineko has said.
According to Mr. Deineko, within the next three years Russian pipe-making companies are to invest $2 billion to upgrade their production capacities. "By 2012, the annual production capacity of large diameter pipes will amount to 5.9 million mt. However, the project implementation periods may be extended depending on market conditions," added Mr. Deineko.
According to FRTP's data, in 2009, pipe consumption in Russia decreased by 17 percent to 6.2 million mt, while the country's pipe export supplies increased by 17.4 percent to 1.58 million mt, both compared to 2008. The losses to the Russian pipe industry in 2009 caused by undersupply of domestic products due to the dumping of supplies from foreign producers are estimated at $200 million.