Interpipe Steel stops due to shortage of scrap, export of which Ukraine increases by 3.5 times

The Interpipe Steel electric steel-smelting complex of the international vertically integrated pipe and wheel company Interpipe (Dnipro) was forced to stop operation due to a shortage of scrap metal, the export of which in January-February 2023 was increased by 3.5 times, to 24,800 tonnes from 7,100 tonnes in January-February 2022.

According to a press release, the Interpipe Steel plant has suspended work since March 16, 2023 due to a shortage of ferrous scrap, which is the main raw material for the enterprise.

Andriy Bibik, director of the plant, told Interfax-Ukraine in an exclusive commentary that the Interpipe Steel plant went into temporary downtime from March 16 due to a shortage of scrap metal, which is caused by an extremely difficult situation with scrap procurement in Ukraine.

"Firstly, it has fallen significantly: in a number of regions, the procurement process has been reduced to almost zero due to hostilities, scrap processing capacities have been lost, and the industry's personnel potential has also decreased. Secondly, scrap exports are breaking historical records, increasing twice a month which puts the Ukrainian metallurgical industry on the brink of disaster," he said.

According to the director, this is an unscheduled temporary stop, as the company is experiencing a serious shortage of scrap metal. "We had a scheduled downtime in October, but now it's unscheduled. Of course, during this time we will carry out maintenance of the main units," Bibik said.

Interpipe Vtormet board chairman Valentyn Makarenko told Interfax-Ukraine that the downtime of the metallurgical plant would last a maximum of seven to eight days.

"The situation is difficult, but we are working with our partner suppliers of scrap, with some of them we conclude long-term and strategic agreements. This will allow us to provide the plant with raw materials and prepare the charge," he said.

According to him, the situation with the provision of scrap in the third decade of March will improve, and the plant will be restarted.

Interpipe is a Ukrainian industrial company, a manufacturer of steel pipes and railway products. The company's products are supplied to more than 80 countries through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe.

Source: www.en.interfax.com.ua