Ferrexpo partially resumes production after stabilization of energy supply

Iron ore company Ferrexpo is partially resuming production at its plants in central Ukraine after stabilization of energy supply. This is stated in the press release on the company’s website.

From October 11, 2022, the company had to stop production due to massive damage to Ukraine’s energy infrastructure as a result of Russian missile strikes. Now the repair work has been completed at a sufficient level to partially resume production, Ferrexpo notes.

“However, the supply of electricity for the Group’s enterprises remains remains variable and limited, which has an impact on the cost effectiveness of production,” the company reports.

The Group is currently focused on reducing its inventories of finished iron ore products to maintain supplies to customers. Since the suspension of production, deliveries to customers have been made according to plan.

Ferrexpo confirms that there is sufficient stock to meet customer demand.

As a result of enemy shelling of state energy infrastructure on October 10, 2022, the ArcelorMittal Kryvyi Rih also announced capacity limitations.

Metinvest enterprises are focused on preventing emergency situations that could potentially arise due to the lack of a stable power supply. Other enterprises, including Sukha Balka, Interpipe and Centravis, had no problems with energy supply at that time.

As GMK Center reported earlier, in January-September 2022 Ferrexpo reduced production of pellets by 31% compared to the same period in 2021 – to 5.64 million tons. The output of pellets in the third quarter fell by 68% y/y – to 839 thousand tons.

In 2021, the company kept production of pellets at the level of 2020 – 11.2 million tons.

Ferrexpo is a Swiss iron ore company with assets in Ukraine. It produces and exports high-quality iron ore pellets for steel production.