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| Ukrainian steel pipe |
Despite the ongoing risks posed by the war, Ukrainian steel pipe producers continue to operate, with several demonstrating signs of recovery. In the first half of 2025, four mini-steel enterprises producing large-diameter steel pipes reported varying financial outcomes. Ukrtruboizol emerged as the market leader, showing significant growth in both sales and profitability.
Ukrtruboizol Leads with Strong Performance
Ukrtruboizol, based in Meliorativne, Dnipropetrovsk region, showed impressive results for the first half of 2025. The company reported product sales worth UAH 276 million, marking a 65% increase compared to the same period in 2024. Despite the challenges of the ongoing conflict, Ukrtruboizol managed to expand its workforce, increasing the number of employees from 186 at the end of 2024 to 201 by mid-2025. However, the company's profit declined to UAH 15.4 million, down from UAH 55 million in 2024, indicating some cost pressures despite its top position in the market.
Mixed Results Among Other Producers
Other companies reported more mixed results. The Ukrainian Pipe Plant in Dnipro, for instance, experienced a significant decline in revenue, dropping 56% year-on-year, from UAH 525 million in 2024 to UAH 141.5 million in 2025. Despite this drop, the company reported a profit of UAH 3.3 million, a significant reduction from the UAH 12 million profit in 2024.
Meanwhile, the steel profile plant in Dnipro saw a 10% decrease in sales compared to the previous year, with a slight loss of UAH 1.4 million. This plant has struggled to maintain profitability, indicating underlying production or market challenges. On the other hand, Ukrspetsconstruction in Kryvyi Rih, although reporting lower sales by 10% year-on-year, managed to increase its profits to UAH 2.2 million and expanded its workforce.
Market Outlook and Future Projections
Despite the mixed financial results, Ukrainian steel pipe producers remain financially stable, adapting to the challenging market conditions. In 2024, the country’s pipe production increased by 12%, reaching 780,000 tons. Notably, pipe exports surged by 43.1%, with 510,000 tons shipped abroad, contributing to a 10.5% rise in export revenue. As the industry adjusts to the ongoing geopolitical tensions, Ukrainian producers' ability to maintain profitability, even amid fluctuations, reflects a resilient sector capable of recovery and growth.
ScrapInsight Commentary
The results from Ukraine’s large-diameter steel pipe producers reflect the broader challenges faced by the industry in a war-torn environment. While companies like Ukrtruboizol lead the way in terms of growth, others are grappling with structural challenges and revenue volatility. Moving forward, it will be crucial for these firms to continue adapting to market conditions and exploring new export opportunities to maintain profitability.
