JEL Classification: L60; L61. | DOI: https://doi.org/10.31521/modecon.V18(2019)-23 |
Radchenko H., Ph.D. in Economics, Associate Professor of Marketing Department, National Aviation University, Kyiv, Ukraine
ORCID ID: 0000-0003-4233-2831
e-mail: annrad.01@gmail.com
Teslia O., Master’s Degree Student, graduate student of Marketing Department, National Aviation University, Kyiv, Ukraine
ORCID ID: 0000-0002-4889-8150
e-mail: ksjushateslja@i.ua
Development Trends in The Pipe Market of Ukraine
Abstract. Introduction. The pipe industry is the largest in Ukraine for the consumption of metal. The pipe industry is characterized by cyclicality, which is determined by significant fluctuations in prices for raw materials and products. And the demand for products is determined by the seasonal factor. The sectoral structure of final consumption is dominated by ferrous metallurgy, metalworking, mechanical engineering, and construction. The total capacity of the pipe plants of Ukraine exceeds 1 million tons of finished products per year, which is much higher than the volume of domestic state consumption. This determines the orientation of the industry for export: Ukraine belongs to the TOP-10 pipe producers among the countries of the world. When analyzing the pipe market, polymer and metal pipes should be considered separately. In 2017-2018, the market for polypropylene and polyethylene pipes increased by 41.7 %, due to the improvement of the situation in the domestic economy. The export of polymer pipes in 2018 amounted to only 2 % of domestic production. Speaking of metal pipes, let us note that traditionally, steel pipes occupy a leading place in the export of pipes in Ukraine.
Purpose. The purpose of this article is to determine the specifics of the export orientation of the pipe industry.
Results. The results of the analysis showed that the domestic market consumes only about 50 % of manufactured domestic products. The analysis is based on data from the State Committee for Statistics of Ukraine for 2012-2018, namely on the volume of pipe production in Ukraine, geographical and commodity structure of exports, as well as on quotas on the import of pipes to other countries from Ukraine.
Conclusions. Most exports are steel pipes because, since 2017, drilling volumes and the number of new wells has increased due to rising oil prices, leading to increased demand for trunk and oil and gas pipes. Therefore, the negative dynamics of export earnings in 2012-2016, with a further increase since 2017, can be traced.
Keywords: pipe industry; polypropylene pipes; polyethylene pipes; steel pipes; exports; consumption; dynamics.
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Received: 11 November 2019
How to quote this article? |
Radchenko, H. & Teslia, O. (2019). Development Trends in The Pipe Market of Ukraine. Modern Economics, 18(2019), 152-157. DOI: https://doi.org/10.31521/modecon.V18(2019)-23. |