Ferrexpo reduced its output by 72% y/y in Q1

Ferrexpo, an iron ore producer with assets in Ukraine listed on the London Stock Exchange, reported a 72% year-on-year decline in iron ore production for the first quarter of 2026, down to 592,750 metric tons, according to the company’s report.

Compared to the previous quarter, the figure decreased by 45%.

In January–March, commercial concentrate production fell by 90% quarter-on-quarter and by 91% year-on-year to 67,820 metric tons.

Production of premium pellets increased by 27% compared to the previous quarter, but fell by 52% compared to the same period in 2025—to 523,000 tons. At the same time, the company did not produce DR pellets in the first quarter, whereas in January–March 2025, these volumes amounted to 81,780 metric tons.

In the first quarter of this year, production activities were largely suspended due to Russian attacks on Ukraine’s energy sector. A limited resumption of operations at reduced capacity levels occurred only at the end of February.

“The lower production figures for the first quarter—nearly half of what we achieved in the last three months of 2025—reflect the Russian Federation’s targeted attacks on Ukraine’s energy infrastructure at the end of last year and their impact on our ability to operate consistently. Until January, given that electricity supply could not be ensured on a stable basis in the necessary volumes, we were forced to make the difficult decision to temporarily suspend operations and place part of the workforce on leave,” noted Lucio Genovese, acting chairman of the board of directors of Ferrexpo.

He added that by the end of February, the group saw sufficient improvement in the availability and cost of electricity to resume limited production on one pelletizing line. It remains in operation, and the group continues to use its own fleet of railcars to export products to customers in Eastern and Central Europe.

Going forward, the company will focus on managing working capital and costs in a challenging operating environment.

As a reminder, based on 2025 results, Ferrexpo reduced its iron ore production by 9% compared to 2024, down to 6.14 million tons.