Ferrexpo reduced production by 9% y/y in 2025

Ferrexpo, an iron ore producer with assets in Ukraine listed on the London Stock Exchange, reduced its iron ore production by 9% in 2025 compared to the same period in 2024, to 6.14 million tons, according to the company’s report.

Given the significant growth in demand in this segment, the company shifted its focus from pellet production to the production of high-quality iron ore concentrate. Thus, over 12 months, commercial concentrate production increased 4.1 times year-on-year to 2.92 million tons, while the production of pellets decreased by 47% y-o-y, to 3.22 million tons. In particular, the production of premium pellets amounted to 3.14 million tons (-44% y-o-y), and DR pellets – 81.79 thousand tons (-83% y-o-y).

During Q4, Ferrexpo produced 412.87 thousand tons of pellets (-35% q-o-q). The entire production volume consists of premium pellets, while the production of DR pellets has been suspended. Concentrate output fell by 24% q-o-q to 661 thousand tons. Total output of raw materials fell by 29% q-o-q to 1.07 million tons.

Commenting on the results, Ferrexpo’s interim chairman Lucio Genovese noted that the fourth quarter of 2025 was one of the most difficult for the company since the start of the full-scale war.

«Missile and drone attacks on regional energy infrastructure resulted in interruptions to the supply of power to our operations» – he noted.

According to him, despite these restrictions, the company managed to maintain relative stability in production.

«Despite all of these challenges, on balance, total production for the quarter was above one million tonnes, and for the second year in a row, production was above the six million tonne level. This is more than 50% of our pre-war capacity and an acceptable production performance given all the challenges we faced during a fourth year of war» – added the Interim Executive Chair.

According to Genovese, the company’s export opportunities have been limited since December due to attacks on the Black Sea region.

«Until repairs are conducted and safe maritime access restored, we are once again focussed on exporting by rail. Although this logistics channel is open, the heavily electrified state rail network has less power, and therefore the switch to diesel locomotives means locomotives take longer to pull wagons to the western border, and due to slower journey and turnaround times, we have leased additional third-party wagons that incur additional costs» – he comments.

The company currently operates one concentrate production line with additional concentrate production depending on the availability of electricity. Sales are mainly to European markets. Once power, rail, and port infrastructure are back up and running, there’ll be a chance to ramp up concentrate production and boost sales to Asian markets, Genovese summed up.

In 2024, Ukraine increased its iron ore exports by 89.9% compared to 2023, to 33.699 million tons. Revenue from mineral resource exports amounted to $2.8 billion (+58.7% y/y).

Ferrexpo produced 489,720 tons of DR pellets in 2024, while no such products were produced in 2023. Total pellet production in 2024 increased by 58% compared to the same period last year, reaching 6.07 million tons.