According to Metallurgprom Association, output by Ukrainian producers of steel tubes in the first four months of 2001 made 587 ths. tons…

STEEL TUBES

STEEL TUBES

UKRAINE

According to Metallurgprom Association, output by Ukrainian
producers of steel tubes in the first four months of 2001 made 587 ths. tons. This
accounts for some 150% against January-April 2000. At the same time, steel tube production
in Ukraine in 2001 is 8% short of the forecast.

Only three plants succeeded to outrun average monthly
production of 2000. These were Lugansk (171.8%), Khartsyzsk (142.8%), and Nikopol (118.8%)
tube works. The rest of tube producers somewhat improved performance but still were at
79-97% as compared to 2000. Upon the results of January-April 2001, the largest
contribution in steel tube manufacturing was that of Nizhnedneprovsk Tube Rolling Works,
Khartsyzk Tube Works, and Nikopol Yuzhnotrubny Works, which jointly accounted for more
than 73% in total output of steel tubes in Ukraine.

According to preliminary estimates, Ukrainian export of
steel tubes in January-April 2001 made 446.6 ths. tons worth USD 229 mln. As compared to
the respective 2000’period shipments grew some 1.6 times, however, still accounted for
77% against performance in the last four months of 2000. In April, aggregate export of
steel tubes from Ukraine lost some 26% as compared to March (diagram 1).

Steel tube export from Ukraine in January-April 2001
comprised seamless tubes (57.4% against 61.8% in 2000), large-diameter welded tubes (26.3%
against 20.8%), and welded tubes (other) – 16.3% vs. 17.4%.

Upon performance in the four months of 2001, major export
supplies of Ukrainian steel tubes were directed to the CIS (81.6% of total exports or some
365 ths. tons). Seamless tubes accounted for 52.3%, large-diameter welded tubes added
31.8%, and the portion of welded tubes (other) made 15.9%.

Ranking the second among countries buying Ukrainian tubes
was the EU with share in export coming to 6.5%. Seamless tubes shipments to this region
made 77.1%, welded (other) – 22.9%, and there were only two tons of large-diameter
welded tubes supplied to the EU from Ukraine.

The third in leadership comes Asia with a 4% share in
exports. In the four opening months of 2001, the region obtained seamless tubes (95.1%),
large-diameter welded tubes (2.9%), and welded tubes (other) (2.0%).

Diagram 1. Export of steel tubes from Ukraine in
2000-2001

Seamless tubes

In January-April 2001, seamless tube export from Ukraine
was destined for 46 countries as compared to 57 countries registered in 2000. Major
consumers of the Ukrainian commodity were Russia (150.7 ths. tons or 58.8% in Ukraine’s
total export), Kazakhstan (18.5 ths. tons), Germany (13.0 ths. tons), Turkmenistan (7.9
ths. tons), and Italy (7.7 ths. tons). These five countries contributed the aggregate of
77% to total export of Ukrainian-made seamless tubes. In terms of by-region distribution,
leaders are the CIS (74.4% of seamless tube export), the EU (8.8%), and Asia (6.6%).

Large-diameter welded tubes

Supplies of these tubes from Ukraine in January-April 2001
were destined for 10 countries. Overwhelming supplies of Ukrainian-made large-diameter
welded tubes fall for Russia – 88.4%. Uzbekistan ranking the second obtained 7.9%.

Welded tubes (other)

In January-April 2001, other welded tubes were imported to
Ukraine mainly from the CIS (79.4%), including 40.6 ths. tons or 55.7% from Russia. Among
other regions-consumers of Ukrainian welded tubes, there are countries of the EU with 9.2%
and Eastern Europe – 7.4%. By and large, in 2001, welded tubes (other) from Ukraine were
acquired by 26 countries worldwide. The top five consumers, which account for aggregate
79.2%, embrace Russia, Germany (5.3 ths. tons), Uzbekistan (4.5 ths. tons), Turkmenistan
(4.2 ths. tons), and Belarus (3 ths. tons).

In the four opening months of 2001, Ukraine imported some
11 ths. tons of steel tubes worth USD 10.3 mln. In terms of physical import, HR seamless
tubes accounted for 72.9%, welded tubes (other) – 26.8%, and large-diameter welded tubes
– 0.3%. Major supplies of seamless tubes arrived from Russia (4.8 ths. tons), Austria
(2.1 ths. tons), and Poland (0.4 ths. tons), three of these contributing the sum of 90.5%.
Welded tubes (other) were mostly supplied from Germany (2 ths. tons) and Russia (0.5 ths.
tons), which accounted for aggregate 83.2% in import of the commodity. Large-diameter
welded tubes were imported to Ukraine from Italy, the Netherlands, Russia, and the Czech
Republic. Import geography in January-April 2001 was as follows: 24 countries supplied
welded tubes (other), 28 countries – seamless tubes, and 4 countries – large-diameter
welded tubes.

In 2001, growth rate in steel tube production made some
5.7% as compared to 2000 with export adding 5.9% (table 1).

RUSSIA

In the first quarter of 2001, Russian producers of steel
tubes keep on boosting output. According to information with Interfax Agency, enterprises
of Russia in the first quarter of 2001 increased production by 19.2% against the
respective period of 2000 driving the figure to 1.26 mln. tons (table 3). Output of
seamless tubes made 587.7 ths. tons, and production of electrically welded tubes amounted
to 657.7 ths. tons.

According to Russian experts, increased production of steel
tubes in Russia is fostered by general economic recovery in the country, on the one hand,
and larger orders from Russian oil and gas companies, on the other hand

The most recent data on performance in January-April 2001
(Metal-Inform) evidence that production of steel tubes in the RF reached 1.69 mln. tons,
that is, added 16.9% against the respective 2000’ period.

USA

On the whole, American market for oil tubes in October 2000
– March 2001 maintained positive trends. In the period under review, prices for tubings
on average added 0.2%, for casing tubes – 0.1%. At the same time, prices for this tube
products hit their high, thus, no substantial changes are anticipated in the short-run.
This suggests certain balance of supply/demand on the market.

Prices for carbon casing seamless tubes increased to the
largest extent – by 1.8%, whereas the largest fall in prices occurred in the period under
review with prices for electric resistance-welded casing tubes (carbon, annealed) –
1.6%.

Vitaly GNATUSH, expert with DerzhZovnishInform

Table 1. Duties imposed on ferrous metal tubes
imported from Ukraine to Russia

Table 2. Production of steel tubes by Ukrainain
plants, ths. tons

* Source: Metallurgprom Association

Table 3. Ukrainian market for steel tubes

Table 4. Data on antidumping investigations in Russia

Table 5. Average monthly prices for oil-conveyance
tubes on the U.S. interior market (Houston district) in 2000-2001, USD/ton

Source: Herald of OJSC CherMetInformatsiya