Ferrexpo ramped up production of DR iron ore pellets by 28% in H1

The Group produced 5.6 million tons of iron ore pellets in H1

The Ferrexpo Group increased production of 67% Fe DR (i.e. direct reduction) iron ore pellets by 28% to 135 thousand tons in H1 2021 y-o-y, according to a report posted on the Company’s website.

In Q2 2021, Ferrexpo produced 85 thousand tons of DR pellets, 70% up from Q1 but 13% down from Q2 2020.

“The Group continues to develop its offering of DR 67% Fe pellets, with this pellet type representing the pathway to low-carbon steel production. In H1 2021, the Group signed its first long-term contract for the supply of DR pellets, with further trial shipments and samples for testing dispatched to additional prospective customers,” reads Ferrexpo’s report.

In January–June 2021, Ferrexpo cut production of pellets by 0.6% to 5.6 million tons compared to the same period a year earlier.

In Q2 2021, the Group produced 2.8 million tons of pellets, 0.8% down y-o-y and 5% up q-o-q, reflecting the successful completion of pelletizer upgrade work during the prior period.

Additional production of 85 thousand tons of high-grade concentrate for sale in 2Q 2021 is related to the commissioning and ramp up of the Group’s concentrate stockyard project.

The share of 65% Fe and 67% Fe iron ore pellets in the total production output was 100% in Q2, against 99% in Q2 2020.

The Ferrexpo Group is the largest producer and exporter of pellets among the former Soviet Union countries. Its production assets include Poltava Mining and Yeristovo Mining.

Ferrexpo plc holds 100% of shares in Ferrexpo AG, which, in its turn, owns 100% of shares in Poltava Mining and 100% of shares in Yeristovo Mining.

In 2020, Ferrexpo increased production of iron ore pellets by 7% to 11.2 million tons against the previous year. The Company’s sales grew by 17% to 12.1 million tons.