It is reported that Khartsyzsk Pipe Plant manufactured 21,000 tonnes of pipes in June which is half of the May 2008 output. In H1 2008 production is down by 61.5% YoY.

According to Millennium capital analyst “The lack of long term orders continues to weigh down on the company. The spot market cannot give them a sizable volume of sales and production. Even if the company wins the tender for the Central Asia China pipeline project, this event will not compensate them for the loss of the Russian market. We do not see the market drivers which can switch our view on Khartsyzsk Pipe from NEGATIVE to any other, because the last one simply died quietly.”

(Sourced millennium capital)