Page 79 - UKRRptDec21

payments to DTEK from Ukraine’s new ‘green’ Eurobond,calculates RBK, citing Dragon Capital data. The cost of Ukraine’s five-year credit default swaps grew 19.5% over the last week, to 502 points. The instruments are, essentially, insurance against state default. Dragon argues that the government's 'manual intervention’ in the payouts violates the rules of the bond and undermines wider investor confidence in the Ukrainian government’s behavior toward its debt obligations.
9.2.11 Metallurgy & mining corporate news
● Interpipe
Railway product sales volume at Ukraine’s largest pipe and railway wheel producer Interpipe (INTHOL) was 14.1 kt in October, an 18.8% m/m decrease, according to the company’s monthly operational report released on November 19. Pipe sales dropped 33.9% m/m to 40.0 kt, while external billet sales plunged 80.7% m/m to 1.1 kt.
The m/m decrease in pipe sales in October was due to several factors. First, OCTG pipe sales plunged 64.2% m/m to 8.3 kt as some volumes were shifted to November, the report said. Second, line pipe sales dropped 24.8% m/m to 22.5 kt. However, welded pipe sales surged 54.6% m/m to 7.1 kt amid larger supplies to European and Ukrainian markets.
The m/m drop in railway product sales was driven by lower sales to the CIS and India.
During 10M21, Interpipe’s pipe sales added 16.6% y/y to 459.1 kt, driven by a 102.4% y/y surge for OCTG pipes to 135.3 kt. Line pipe sales added 5.6% y/y to 257.5 kt, while sales of mechanical pipes advanced 37.0% y/y to 20.0 kt. However, welded pipe sales plunged 32.3% y/y to 46.3 kt in 10M21.
Railway product sales dropped 12.7% y/y to 142.5 kt in 10M21, driven by a 17.3% loss for wheels to 116.9 kt, partially offset by a 25.7% increase for wheelsets to 20.8 kt.
Interpipe boosted its external billet sales 64.2% y/y in 10M21 to 48.3 kt.
Ukraine's share of Interpipe’s pipe sales in 10M21 dropped to 19%, or 3pp less than in 2020. At the same time, the share of sales in the Americas rose 7pp to 18%, the share of CIS countries gained 1pp to 12%, and MENA's share was unchanged at 24%. Europe's share in pipe sales dropped 4pp to 25%.
The share of Interpipe’s railway product sales in Ukraine in 10M21 dropped 1pp from 2020 to 13%, while the share of sales to Europe retreated 2pp to 33%. The share of sales to CIS countries dropped 3pp to 40%. The share of sales in the Americas added 2pp to 5%, and sales in other countries jumped 5pp to 6%.
Regarding production volumes, Interpipe’s pipe production dropped
79 UKRAINE Country Report December 2021 www.intellinews.com