ferrexpo.com ferrexpo.com

In the fourth quarter of 2022, production fell by 86% y/y – to 417 thousand tons

In 2022, the Ferrexpo company reduced the production of pellets by 46% compared to 2021 – to 6.053 million tons. The output of pellets in the fourth quarter fell by 86% y/y – to 417 thousand tons. This is stated in the report on the company’s website.

Production of DR pellets with 67% iron content in 2022 decreased by 18% y/y – to 353 thousand tons. The production of pellets with 65% iron content in 12 months of 2022 amounted to 5.7 million tons, which is 47% less year-on-year.

In the fourth quarter of 2022, the production of direct reduction pellets did not take place due to interruptions in the energy supply due to the shelling of the Ukrainian energy infrastructure by Russian forces.

The production of products with 65% iron content in the three months amounted to 417,000 tons, which is 28% less compared to the previous quarter, and 86% less than the same period in 2021.

“The reduction in pellet production in the 4th quarter is primarily due to the lack of energy supply during almost the entire period, which was partially restored at the end of December. The enterprise is focused on the production of high-quality pellets,” the message says.

During the year, the production of DR pellets accounted for 6% of the total production. In 2023, the company plans to continue increasing the production of direct recovery pellets.

The production of commercial concentrate for the past year amounted to 124 thousand tons, decreasing by 47% y/y. In the fourth quarter, 40,000 tons of concentrate were produced, which is 38% less than in the previous quarter and 3% more year-on-year.

The total volume of product sales for 2022 amounted to 6.2 million tons, which is 46% less than in 2021. In the 4th quarter, deliveries to customers continued according to plan, despite problems with energy supply.

“Last year was extremely difficult for everyone connected with Ukraine. However, after more than 320 days of conflict, it continues to successfully defend itself. Ferrexpo’s operations and marketing teams remain resilient throughout the war, and we continue to support the people of Ukraine through continued operations and investment. We hope that the coming year will bring peace, and we look forward to being part of the process of creating a new future for our people, their families and communities throughout Ukraine,” said Jim North, CEO of Ferrexpo.


Results of the Ferrexpo Group in 2022

As GMK Center reported earlier, from October 11, 2022, Ferrexpo had to temporarily stop production due to massive damage to Ukraine’s energy infrastructure as a result of Russian missile strikes. At the beginning of November, the company reported on partial recovery of the production activity after stabilization of energy supply.

In 2021, Ferrexpo kept the production of pellets at the level of 2020 – 11.2 million tons. The output of DR pellets with 67% iron content increased by 27% y/y – up to 431 thousand tons.

Ferrexpo is a Swiss-based 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).