In 2015 Ukrainian companies produced 852 thousand tons of pipes, down by 39% YoY. In January-September the output dropped by 3% more, to 623 thousand tons.
This output decrease could be explained by several factors. First of all, it’s market situation transformation and sales market change. Until recent times the main consumers of Ukrainian pipes were the Customs Union countries. Interpipe could even supply its products to Russia, Belarus and Kazakhstan without duties. But after the relations between the countries grew colder, the quota was cancelled. Interpipe tries to enter new markets, but EU also has duties on Ukrainian pipes.
The second factor is the military activities at Donbass. Some medium-sized companies were left on the Russia-supported terrorist-occupied territory and had to stop operating: Lugansk Tube Plant and Metallist in Makeevka, for example. The only LDP producer in Ukraine – Khartsyzsk Pipe Works also has problems. On the other hand Slavsant was able to relocate from Antrazit to Pavlograd.
Centravis, the largest Ukrainian and one of the largest producers of seamless pipes in Europe, has been making new products and certifying them according to Near East and American manufacturers.
At the same time, a drastic increase in output and sales should not be expected without the total modernization of the housing system in Ukraine and construction volumes increase. (Ukrainian metal)