In five months, the company produced 4.4 million tons of products
In January-May 2022, Ferrexpo reduced the production of pellets by 8% compared to the same period in 2021, to 4.4 million tons, according to a press release.
From March to May, the company’s warehouses collected about 400,000 tons of pellets due to logistical constraints. Ferrexpo intends to reduce inventories as soon as traffic restrictions are relaxed.
Since the Russian invasion of Ukraine, the company reached a record level of sales to the European market. In addition, there are no problems with the supply of raw materials for the planned production of pellets. Stocks of finished goods in warehouses increased significantly due to infrastructure damages.
The company intends to reduce production capacity in the near future to distribute finished goods. At this time, it is planned to find alternative routes for shipment of products or wait for the unblocking of ports.
“Russia’s invasion of Ukraine has created a changeable and unpredictable situation, and one in which our management team is continually having to adapt and evolve our approach to operating. Today, we are lowering our short term production schedule for the summer months, and we will look to increase production once we have greater clarity on logistics going forward,” said Jim North, CEO of Ferrexpo.
Earlier GMK Center reported that in the first quarter of 2022, Ferrexpo preserved the production of pellets at the level of the same period last year – 2.6 million tons. During the same period, the company’s sales amounted to 2.6 million tons.
Also GMK Center reported that in 2021 Ferrexpo preserved the production of commercial pellets at the level of 2020 – 11.2 million tons.
Ferrexpo is a Swiss iron ore company with Ukrainian assets. It produces and exports high quality iron ore pellets for steel production. The Group is the largest producer and exporter of pellets in the post-Soviet space.