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The Group has operated two pellet lines and intends to keep this utilization level for the remainder of the year

The London listed iron ore company Ferrexpo with assets in Ukraine produced 1,066 thousand tons of pellets in the 2Q 2023, that is 18% higher compared to the previous quarter, when 901 thousand tons were produced. This data is stated in the Ferrexpo Production report for the 2Q 2023.

Ferrexpo results 2Q 2023

The Group successfully overcame challenges associated with energy supply and logistics capabilities and operated two pellet lines out of four during the April-June period. Ferrexpo intends to work with one or two pellet lines for the remainder of the year, assuming no further material changes to the operating environment and logistics availability in Ukraine.

Sales continued to be exported by rail and barge to Central-Eastern Europe, and overseas from European Black Sea ports. Sales for the 2Q totaled 1,200 thousand tons, that is 45% higher q/q.

Ferrexpo concentrated on the production of Fe65% Ferrexpo Premium Pellets, representing 100% of output in 2Q, as it was in 1Q. It should be noted that the Group flexibly plan its output structure to raise margins as DR-grade pellets premium was relatively low in the 1H 2023 – $40-50 compared to $75-95 in 2H 2022.

As GMK Center reported earlier, in 2022 Ferrexpo reduced pellet production by 46% compared to 2021 – to 6.053 million tons. Pellet output in the fourth quarter decreased by 86% y/y – to 417 thousand tons, in particular, DR pellets – by 18% y/y, to 353 thousand tons.

Ferrexpo is a London listed mining company with iron ore assets in Ukraine. It produces and exports high-quality iron ore pellets for steel production. Its production assets include Poltava Mining and Yeristovo Mining (holding a 100% stake each).