Ferrexpo increased DR-pellets output to almost 0.5 million tons in 2024

Ferrexpo, an iron ore company with assets in Ukraine, that is listed on the London Stock Exchange, produced 489.72 thousand tonnes of DR-pellets in 2024, while no such products were produced in 2023. This is stated in the company’s report.

Total pellets output in 2024 increased by 58% y/y to 6.07 million tons.

In Q4 2024, Ferrexpo increased pellets production by 18% q/q to 1.503 million tonnes, incl. 163.55 thousand tons of DR-pellets.

“In the challenging circumstances, it is pleasing to report a strong increase in production for 2024 – our best annual production performance since the start of the full-scale invasion in 2022. The higher production reflects our ability to access Ukrainian Black Sea ports again and resume exports to customers in MENA and Asia.” – comments Lucio Genovese, Interim Executive Chair of Ferrexpo.

In total, 37 ocean going vessels were loaded in 2024, comprising 32 vessels from Ukraine and five from other ports, compared to just 19 (from Romania) in 2023.

According to Genovese, one of the key achievements of 2024 was setting a new annual record for DR-pellet production.

“These higher quality pellets generate a higher revenue for the business, which is particularly relevant as we continue to experience high input costs. In the fourth quarter, it is also interesting to note that we increased our production of high grade pellets and concentrate, which contributed to lowering our fixed cost base as production levels increased. This is a further example of flexibility, adjusting our production and sales strategies to match evolving market dynamics.” – added Ferrexpo`s Interim Executive Chair.

Meanwhile, low iron ore prices and high raw material costs continue to put pressure on Ferrexpo. Due to ongoing attacks on Ukraine’s energy infrastructure, the company is forced to import electricity from the EU at higher tariffs.

As GMK Center reported, at the end of 2023, Ferrexpo reduced the output of pellets by 36% compared to 2022 – to 3.845 million tons. Total output of iron ore products amounted to 4.15 million tons.

Ferrexpo is an iron ore company with assets in Ukraine that is listed on the London Stock Exchange. It produces and exports high-quality iron ore pellets for steel production. Its production assets are Poltava and Yeristovo Mines and the Belanovo Mine which is in development (all 100% owned each).