Interpipe results for 2016

The Ukrainian industrial company Interpipe has summed up production results for the past year. Sales of finished goods decreased by 5% year-on-year to 572 thousand tonnes in 2016. At the same time, sales of pipes decreased by 10%, while sales of wheels increased by 22%. Export shipments accounted for 75% of total sales.

Sales of pipe products decreased to 458 thousand tons in 2016. At the same time, Interpipe increased supplies to the Ukrainian market to 118 thousand tons compared to 108 thousand tons in 2015.

Sales of pipes in the European market increased from to 124 thousand tons from 111 thousand tons in the previous year. Sales in the American markets remained at the level of the previous year. The sales of pipes in the Middle East decreased to 69 thousand tons from 85 thousand tons a year earlier due to losses in the markets of Turkey, Iraq and Egypt.

Sales of pipes in the CIS fell from 153 thousand tons in 2015 to 104 thousand tons in 2016, which is associated with the introduction of customs duties due to the suspension of the agreement on a free trade zone with the Russian Federation and the difficult economic situation in the countries of Central Asia.

Nevertheless, the share of pipe sales in the markets of Europe, America and BV&A exceeded 50%.

Sales of wheel products in 2016 increased by 22% and reached 114 thousand tons. Sales on the domestic market increased due to the modernization of the rolling stock of Ukrzaliznytsia. The sales volumes of wheels in the CIS also increased. However, wheel sales in Europe fell to 18% in 2016 from 31% in 2015.

The deficit of scrap metal, the main raw material, in 2016 reached 43 thousand tons at Interpipe STEEL. The shortage of steel scrap provoked a significant increase in its prices on the Ukrainian market, which increased the cost of steel and finished products. As a result, in 2016 the company lost orders for finished products.