Total production of iron ore pellets by the mining company Ferrexpo, which controls the Poltava and Yeristovskiy mining and processing plants in Ukraine, in the 3rd quarter of 2022 amounted to only 800 thousand tons, which represents a decrease by 68% compared to the same period last year, reported at the campaign press office on Thursday.
The sharp decline in production occurred "as a result of Russia's invasion of Ukraine in 2022 and the associated logistical constraints requiring a reduction in production," the press service of Ferrexpo explained, adding that the group currently uses only one of the four operating pelletizing lines, which shows the inaccessibility of consumer markets.
However, the company reported that its production of higher quality direct reduced pellets increased by 35% to 263 kt in Q3 2022, which means that this product accounted for 31% of total pellet production for this period. This result is due to Ferrexpo's current excess enrichment capacity and market factors stimulating the production of this type of pellet.
Sales were one million tonnes in Q3 2022, representing a 65% decrease year-over-year, reflecting the same logistical constraints discussed above, with sales exceeding production as contraction existing reserves in Ukraine.
Sales concentrate output increased 45% yoy to 65kt in Q3 2022, reflecting Ferrexpo's efforts to meet demand in available consumer markets.
