Open Joint Stock Interpipe Nizhnedneprovsky Tube Rolling Plant : 2021-06-17 - Interpipe releases report on operations for May 2021

PRESS RELEASE

June 17, 2020

Interpipe releases report on operations for May 2021

Interpipe, a global producer of steel pipes and railway products, has released (via Interpipe Holdings Plc) its monthly report on operations for May 2021.

Highlights

In May 2021, the trading activity of the Company continued rebounding across all key products and markets on the back of global release of quarantine restrictions and business activity recovery.

Overall pipe product salesgained 9.1% m-o-m and stood at 6.1% y-o-y higher for the first five months 2021.

OCTG salesgrew by 7.4% m-o-m amid a growth of demand from the domestic and US market and stable shipments to Turkey and new orders from the UAE. For the first five months 2021 sales volumes surged by 29.6% y-o-y.

Linepipe sales volumesrose by 18.5% m-o-m on the back of growth of demand in Europe and the US following easing of quarantine measures in these regions.

Mechanical pipe saleshiked by 29.8% m-o-m amid a growth in sales of boiler, cold-drawn and precision pipes in Ukraine and the CIS and cold-rolled pipes to the US and Brazil.

Welded pipe salescontinued suffering across all markets (down by 35.5% m-o-m) as prices for welded prices were lagging the continuous rally of HRC market prices.

Sales volumes of railway productsrebounded to a sustainable monthly level of 15 thousand tons (up by 13.5% m-o-m) amid a robust demand from the Customs Union market (Belarus and Kazakhstan) and expansion of cooperation with the national railway operator in India.

However, for the first five months 2021 sales volumes of railway products contracted by 28.0% y-o-y.

Report On Operations

								April 2021			May 2021			5 months			5 months					Change
	#				Product							2020			2021
									Thousand tons					% m-o-m				For 5 months
																		2020, % y-o-y
											Production
1.					Steel	89,2	86,0		332,9	368,2	-3,6%		10,6%
2.					Pipes, o/w:	48,3	51,6		194,2	206,7	6,9%		6,4%
2.1.				Seamless, o/w:	44,7	47,2		165,7	184,4	5,5%		11,3%
2.1.1.			OCTG	14,2	16,5		35,4	56,6	15,6%		60,0%
2.1.2.			Linepipe	28,6	28,4		123,9	119,1	-0,8%		-3,9%
2.1.3.			Mechanical	1,8	2,3		6,5	8,8	25,4%		35,4%
2.2.				Welded	3,6	4,4		28,5	22,3	23,5%		-21,7%
3.					Railway products	14,7	13,0		89,6	68,0	-11,4%		-24,1%
3.1.				Wheels1	12,7	11,3		80,8	57,0	-11,1%		-29,5%
3.2.				Wheelsets1	1,7	1,1		6,3	8,6	-31,2%		37,8%
3.3.				Axles1	0,3	0,6		1,8	1,9	105,9%		3,6%
3.4.				Tyres	0,1	0,0		0,7	0,5	-100,0%		-31,5%
											Sales
1.					Steel2	7,0	8,0		15,2	26,5	13,8%		74,3%
2.					Pipes, o/w:	44,9	48,9		187,4	198,8	9,1%		6,1%
2.1.				Seamless, o/w:	39,2	45,3		159,5	175,7	15,6%		10,2%
2.1.1.			OCTG	12,2	13,1		40,0	51,9	7,4%		29,6%
2.1.2.			Linepipe	25,2	29,9		112,8	115,2	18,5%		2,1%
2.1.3.			Mechanical	1,8	2,3		6,6	8,6	29,8%		30,9%
2.2.				Welded	5,7	3,7		27,9	23,1	-35,5%		-17,3%
3.					Railway products	13,2	15,0		93,9	67,6	13,5%		-28,0%
3.1.				Wheels1	9,9	11,5		82,7	53,3	16,6%		-35,5%
3.2.				Wheelsets1	3,0	3,2		8,9	12,1	8,5%		37,0%
3.3.				Axles1	0,3	0,3		1,6	1,5	-12,8%		-1,8%
3.4.				Tyres	0,1	0,0		0,7	0,6	-100,0%		-25,0%
					TOTAL	65,1	71,9		296,4	292,8	10,5%		-1,2%
1.	Wheels and axles are inter alia utilized as components (semi-products) for wheelset production
2.	For steel - only external sales

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Regional Sales Data. Pipe products

May 2021. Pipes sales by region, th.tons	5m 2021. Pipes sales by region, th.tons

Regional Sales Data. Railway products

May 2020. Railway products sales by region, th.tons

5m 2021. Railway products sales by region, th.tons

About the company:

Interpipe is global producer of steel pipes and railway products, based in Ukraine. The company's products are marketed in more than 80 countries all around the world via the network of sales offices located in key markets of Ukraine, Europe, North America and the Middle East.

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