OREANDA-NEWS. On 03 April 2008 was announced, that an international holding CENTRAVIS gave its estimation of main tendencies in tube and pipe industry in Ukraine during the last 5 years.

In March 2008 analysts of an international holding CENTRAVIS, a worldwide manufacturer of seamless stainless tubes and pipes, presented their view of main tendencies in Ukrainian tube and pipe industry in 2003 — 2007.

Tube production is one of the leading industries of Ukrainian economy. High-capacity production basis that was established in Ukraine as far back as in Soviet times guarantees for the country one of the leading places of tube manufacturing in the world today. During the last years there is a stable growth of volumes of production of tubular products: in 2003 — 2007 an average annual rate of domestic production in tonnes was 6.9%. At the same time the industry is export-oriented: the production exceeds the volumes of domestic consumption more than threefold.

Export ratio is about 70% of tubes and pipes produced in Ukraine. Russia remains a major external customer today. However, during the last years export opportunities of Ukrainian manufacturers are limited by fixed quotes and antidumping duties. For the industry the risks, related to a substantial price fluctuation for basic raw materials — ferrous metals and nickel — are peculiar.

In 2005 — 2006 tube and pipe industry in Ukraine showed a stable growth at the level of 13-15%. The main reason for growth of tube manufacturing in Ukraine was the rise of demand for Ukrainian tubes and pipes due to the launch of new projects in oil — and gas-transport industries. The second reason was stabilization of prices for steel on the world market after their rapid growth in 2004 because of increase of demand for it on the part of China. In 2007 the growth of volumes of manufacturing almost stopped. A significant decline of production happened in the last quarter of the previous year because of the decrease of exports, mainly due to the reduction of purchase of big size tubes by Russia. Correspondingly, the future of Ukrainian tube and pipe industry will depend on the tendencies of worldwide business climate.

A stable growth is peculiar of tubes from stainless steel. In 2003 — 2006 an average annual growth rate of capacity of the world market of stainless steel tubes and pipes in tonnes was 6.5%. During the next years some decline of rates of market growth is forecasted, at the same time positive dynamics of growth will be preserved. A forecasted growth rate of volume of consumption of stainless steel tubes and pipes in the world will constitute about 4% within 2007 — 2011.

During the last years there is a tendency for decrease of share of top-5 manufacturers in the structure of world manufacturing of stainless steel tubes and pipes: thus, during 2003 — 2008 this indicator reduced from 66% to 57%. At the same time, the market share of CENTRAVIS PRODUCTION UKRAINE in 2006 rose from 4% to 5 %.