Interpipe is compelled to abandon the US pipe market due to the recent introduction of additional duties, the company said in a statement to the media. US disclosed initiation of 23.75pc duty in summer 2021 on Ukrainian line pipes and revealed its intention to introduce 30.19pc duty on Ukrainian oil and gas pipes (OCTG) in addition to the current 25pc custom levy that began in March 2018 making the total duty to Ukrainian pipe products over 50pc.
Leaving the US market could lead to the loss of several thousand jobs at the plants in the Dnipropetrovsk region. The Ukrainian market share in the US is less than 1pc, and less than 0.5pc in the OCTG portion and, therefore, not a menace to the commercial security of the US, stated the company.
Production
Interpipe’s H1 2021 production of steel grew by 16.5pc to 458,100mt with pipe production up by 12.8pc to 263,500mt while railway steel products fell by 19.3pc to 82,100 against the same year-ago period.
In H1 2021, sales of pipes rose by 9.1pc to 257,800mt while sales of railway products dropped by 20.6pc to 83,000mt compared to the same year-ago period. Its primary markets are CIS, Europe, and MENA.
In June, Interpipe manufactured 90,500mt steel, 57,100mt of pipe, and 14,200mt of railway products.
Interpipe manufacturers seamless pipes and railway wheels with exports to over 80 countries. In 2020, Interpipe decreased production of steel by 11.2pc to 758,700mt, pipe manufacturing by 20.9pc to 464,000mt, and railway production by 8.3pc to 190,600mt compared to the previous year.