The last year of the second millennium was extremely aggressive for the Ukrainian tube producers. Nobody but the nearest neighbor stabbed in the back…
STEEL TUBES
STEEL TUBES
UKRAINE
The last year of the second millennium was extremely
aggressive for the Ukrainian tube producers. Nobody but the nearest neighbor stabbed in
the back. Russian producers challenged “to show who is the master of the house” and
initiated antidumping investigation on Ukrainian tubes. However, they failed to take into
account tat not only sellers but also the buyers operated on the market, and they reckoned
on the Ukrainian steel tubes. That is why, there is a hope for prudence of Russians, who
express no willing to start stormy quarrel with their Ukrainian neighbors and will
continue to collaborate in economic sphere.
When observing the situation in Ukraine, it should be noted
that in 2000 steel tube production and trade generally featured the positive tendency.
In accordance with the data of Metallurgprom, in December,
the main steel tube producers manufactured 176 ths. tons of tubes (see table 1). In 2000,
production indicated some 147% in comparison to the respective period of 1999.
Table 1. Steel tube production at Ukrainian mills
| Production*, ‘000 tons | Average monthly production, ‘000 tons | |||||
| Dec’2000 | 2000 | Dec ’2000 | 2000 | 2000/1999 ratio, % | ||
| Dnepropetrovsk Tube Plant | 19 | 178 | 10.7 | 11.1 | 14.8 | 133.3 |
| KominMet | 6 | 90 | 5.4 | 5.3 | 7.5 | 141.5 |
| Lugansk Tube Plant | 5 | 38 | 2.3 | 1.8 | 3.2 | 177.7 |
| Illyich Metallurgical Works of Mariupol | 3 | 63 | 3.8 | 2.4 | 5.3 | 220.8 |
| Nizhnodneprovsk Tube Plant | 55 | 614 | 36.9 | 32.4 | 51.2 | 158.0 |
| Nikopol Yuzhnotrubny Tube Plant
|
24 | 255 | 15.3 | 18.1 | 21.2 | 117.1 |
| Novomoskovsk Tube Plant | 14 | 152 | 9.1 | 6.3 | 12.6 | 200.0 |
| Khartsyzsk Tube Plant | 50 | 275 | 16.5 | 19.0 | 22.9 | 120.5 |
| TOTAL | 96.4 | 138.7 | 143.8 | |||
* Source: MetallurgProm
By the end of 2000, all large Ukrainian manufacturers of
steel tubes reported positive dynamics of average monthly production in comparison with
1999. Five enterprises held the leadership: Illyich MW of Mariupol, Novomoskovsk Tube
Plant, Lugansk Tube Plant, Nizhnedneprovsk Tube Plant, and KominMet. The most important
contribution to steel tube production was made by Nizhnedneprovsk Tube Plant (36.9%),
Khartsyzsk Tube Plant (16.5%), Nikopol Yuzhnotubny Tube Plant (15.3%), Dnepropetrovsk Tube
Plant (10.7%), and Novomoskovsk Tube Plant (9.1%).
In 2000, export of Ukrainian steel tubes had a stable
positive tendency except for a winter recession in the fourth quarter. In
October-December, supplies decreased approximately by 49 ths. tons.
According to the data with the Ukrainian Customs Service,
in 2000 exports of steel tubes accounted for over 1.2 mln. tons worth USD 517 mln. At the
same time, in comparison with 1999, physical increase in export approximately amounted to
55% (see figure 1) and currency inflows soared by 67%.
Figure 1.Export of steel tubes from Ukraine in
1999-2000
The analysis of supplies shows that 2000-to-1999 export
increase occurred due to expanded supplies of large-diameter welded tubes (+91%) and
seamless tubes (+55%). The composition of steel tube export looks like as following:
seamless tubes – 61.8%, large-diameter welded tubes – 20.8%, and other welded tubes
– 17.4%.
Further analysis of the steel tube market will be continued
in the next article.