Ferrexpo reduced production of iron ore pellets in Ukraine by 27% due to logistical constraints
Ferrexpo, an iron ore company headquartered in Switzerland with assets in Ukraine and a premium listing on the London Stock Exchange in the FTSE 250 index (FXPO ticker), reported that total iron ore pellet production in Q2 2022 decreased year-on-year by 27% and amounted to 2.1 million tons as a result of the ongoing conflict in Ukraine and the associated logistical constraints.
"The Group continues to operate one to three of its pelletizing lines, reflecting the availability of logistics in Ukraine," Ferrexpo said in a press release on Thursday.
The Group continues to focus on iron ore with high iron content: 100% of production in Q2 2022 will consist of 65% Fe or higher, including 4% of higher quality pellets (67% Fe).
p>Sales in the first half of 2022 were 4.4 million tonnes, a decrease of 21% year-on-year and reflecting the same logistical constraints discussed above.
Ferrexpo is in talks with a number of logistics service providers to resume access to maritime markets through neighboring countries, the company said.
Recall that in the first quarter of 2022, Ferrexpo maintained its pellet production at the level of the previous year - 2.6 million tons. During the same period, the company's sales amounted to 2.6 million tons. In 2021, the company maintained the production of commercial pellets at the level of 2020 - 11.2 million tons.
Ferrexpo is a Swiss iron ore company with assets in Ukraine. Produces and exports high quality iron ore pellets for steel production. The Group is the largest producer and exporter of pellets in the post-Soviet space.