Strike by Polish truckers threatens pipe supplies from Ukraine

Ukrainian pipe companies increased production in January-September, reports the national association of pipemakers Ukrtruboprom.

The total volume amounted to 376.1 thousand tons, which is 5.1% more than a year earlier, Callanish notes. However, in September alone, production reached 36.9 thousand tons, which is 11.7% less than the previous month and 10.2% less than last year.

Pipe companies showed mixed results in the first nine months of the year, according to the association. In particular, Interpipe Nico Tube increased production by 8.8% compared to last year, Uktrubozol increased output by 26.2%, and Centravis by 312.9%. However, Trubostal reduced production by 54.5%, Interpipe NMTZ reduced production of electric-welded pipes by 62.9%, and production of Oscar pipes fell by 25%.

“As a result, the pipe industry of Ukraine showed positive dynamics, despite the constant shelling of production sites located in the front-line zones, in particular in Nikopol,” says Georgy Polsky, General Director of Ukrtrubprom. “A real stab in the back for Ukrainian exporters, in particular steel pipes, was the blockade of the Ukrainian-Polish border that began in early November. The European direction is the only one left for our business after the start of a large-scale war.”

Many trucks carrying pipes are stuck in traffic jams, and delivery deadlines to European customers have been missed, he added.

“Since there is a possibility of the strike spreading to other countries in Eastern Europe, almost all pipe factories located in the front-line regions face the risk of shutting down production capacity as early as mid-December,” Polsky notes.

Ukrainian pipemakers cut production last year amid the ongoing Russian invasion to 608,000 tons, down 38% from last year (see Kallanish passim).

They reduced exports in October compared to the previous month to 27.6 thousand tons, down 13.1% month-on-month and 37.5% less year-on-year. Thus, in January-October, Ukraine exported 305,410 tons of pipes, which is 12.3% less than a year earlier.

The main consumers of Ukrainian pipes were Germany, the USA, Romania and Poland.

In 2022, Ukrainian pipe makers reduced exports to 400.4 thousand tons, which is 33.6% less than last year.