ChelPipe Shipped More than 2 Million Tons of Pipes in 2017
Following the results of 2017, the enterprises of the tubular division of ChelPipe Group – Chelyabinsk Pipe Plant and Pervouralsk Pipe Plant – shipped 1.988 million tons of pipes to their customers, an increase of 16% (+275 thousand tons) as compared with the volumes recorded in 2016. The ChTPZ’s share in the aggregate shipments of Russian pipe manufacturers in 2017 increased by 1%, up to 17.5%. The growth driver was an increase in the shipments of seamless pipes for the oil and gas, construction and machine building industries.
There was an increase of 19% in the sales of seamless pipes in the reported period as compared with 2016 – up to 1.2 million tones, thus surpassing the figures of the post-Soviet period. Such a shipment increase is predominantly underpinned by a growth of drilling and excessive demand for oil and gas pipes. There was yet another positive impact upon dynamics: buoyancy in the industrial sector which led to an increase in demand for industrial pipes. At the end of 2017, the shipment volume of welded pipes was approximately 800 thousand tons, including large-diameter pipes (LDP) – 762 thousand tons, an increase of 18% as compared with the figures of 2016.
ChelPipe increased the export of tubular goods in the international market in 2017 in order to diversify its order portfolio. The export volume was 587 thousand tons (+123%), out of which 437 thousand tons are accounted for by the market of the far abroad countries (+264%), 150 thousand tones – for the market of the CIS countries (+5%). Conversely, the shipments to the Russian market dropped to 1.4 million tones, a decrease of 3% as compared with the previous year. This reduction is caused by a decrease in demand for LDP since a number of infrastructure projects of the companies of the fuel and energy complex were completed. However, ChelPipe Group participated in the largest pipeline projects: “Nord Stream 2”, “The Power of Siberia”, “The North European Gas Pipeline”, “Yamal LNG”.
Furthermore, in 2017 ChelPipe Group sold 14 thousand tons of pipeline fittings, a decrease of 1,000 as compared with the volumes of 2016. The main fittings included hot-bent branches, stamp-welded parts and sharply-bent branches. An insignificant reduction was caused by the rescheduling of some oil and gas projects and, as a result, a decrease in demand for pipeline fittings. In 2018 ChelPipe is planning to increase its share in the sector of stamp-welded parts by participating in compressor plant construction projects of the leading Russian companies of the fuel and energy complex.
ChelPipe Group expects that there will be a growing demand for OCTG in 2018 in view of the growth of drilling and field development. A moderate increase in demand for tubular products is expected on the part of the machine building industry and the housing and utility sector. ChelPipe Group intends to retain its position by expanding its sales markets, mastering new high-margin products, in particular, pipes with premium connections, and by optimizing its business processes for the purpose of gaining the best competitive advantages.