Ukrainian steel pipe and railway wheel producer Interpipe has announced its production and sales results for May, underlining the negative consequences of Covid-19 and low oil prices on the business environment. However, in the given period the company strengthened its positions in the railway products segment.
In the January-May period this year, Interpipe’s crude steel production decreased by 16.9 percent year on year to 332,200 mt, SteelOrbis has learned. In the given period, the company’s output of pipes decreased by 33.8 percent year on year to 194,200 mt, while its output of railway products, on the contrary, increased by 13 percent year on year to 89,600 mt.
In the January-May period this year, Interpipe’s OCTG sales totaled 40,300 mt, falling by 50.7 percent year on year to their lowest level amid the global oil and gas crisis caused by the coronavirus pandemic. The company’s linepipe sales declined by 4.5 percent year on year to 113,300 mt in the January-May period. The decline was significantly offset by a 83.4 percent recovery in May caused by the easing of lockdown measures.
However, in the given period, the company managed to increase its sales of railway products by 17.9 percent year on year, booking 94,100 mt in the January-May period this year. The growth in sales was mainly caused by the discussions in the market regarding the restoration of the 34.22 percent antidumping duty on ex-Ukraine railway wheels in the Customs Union, the company believes. Accordingly, the distributors were likely to build up their stocks before the duty comes into force.