Page 86 - UKRRptSept21

pipe producer Interpipe percentage might face an increase of anti-dumping duty on imports of its OCTG pipes into the US to 30.19% from 7.47%, according to a preliminary review by the US Department of Commerce (DoC) dated Aug. 2 and published on Aug. 9. The final review should be issued within 120 days.
The US also will introduce a 23.75% duty on imports of standard, line and pressure seamless pipes from Ukraine, according to the final determination by the DoC dated June 25 and published on July 2. The decision to introduce this duty might be made by Aug. 9, or 45 days from the final decision date, according to Interfax-Ukraine.
Interpipe already pays a 25% section 232 duty on all of its steel exports to the US, and the additional 23.75% duty on line and other pipes make the total trade barriers prohibitive for Interpipe’s sales into the US, according to an interview by Interpipe’s first deputy CEO Denis Morozov to Metal Expert as cited on Aug. 10 by Interfax-Ukraine.
In 2019, Interpipe sold 133 kt of pipes into the US (11.1 kt per month, or 22% of its total pipe sales and 93% of its pipe sales into the Americas region).
In 1H21, Interpipe sold 35.4 kt of pipes (5.9 kt per month, or 15% of its total pipe sales) into the Americas, we calculate from the company’s operational update. In 2020, Interpipe sold 51.7 kt of pipes into the Americas (4.3 kt per month, or 11% of its total pipe sales).
The EBITDA of Interpipe’s pipe segment (after reallocation from its steel segment) amounted to $15.2mn in the first quarter of 2021, with about $15mn due to the release of provisions.
The increases of the US duties are negative for Interpipe.
The profitability of the company’s pipe segment in the first quarter of 2021 was already depressed (zero EBITDA after adjusting for provisions release). In the second quarter of 2021, Interpipe’s performance might improve because of its passing the recent input cost inflation onto its customers, but the duty increases for pipe exports to the US will weigh negatively in 2H21.
Ukraine’s largest pipe and railway wheel producer Interpipe (INTHOL) has been ordered to pay a fine of UAH69mn ($2.6mn) after losing its appeal against the Antimonopoly Committee of Ukraine (AMCU) regarding tenders for railway wheels, according to an August 17 AMCU statement. The Northern Economic Court of Appeal on August 9 overturned the April decision by a first-tier court, where Interpipe won a court case against the Antimonopoly Committee. The April court decision declared invalid and cancelled AMCU’s October decision to fine Interpipe Ukraine and three other companies about UAH69mn and to bar them from participating in public procurements for three
86 UKRAINE Country Report September 2021 www.intellinews.com