Ferrexpo Q3 production falls as Russia blockade bites

Iron ore pellet producer Ferrexpo reported a sharp fall in third-quarter output on Thursday due to Russia’s blockade of Ukraine's Black Sea ports.

The company said production slumped 68% year-on-year to 0.8 million tonnes. Sales fell 65% to 1 million tonnes.

"The third quarter of 2022 saw an additional constraint on the Ukrainian railway network with the increase of shipments of grain during the annual harvest season, further to the other demands and constraints facing logistics providers in Ukraine," said chief executive Jim North.

“We continue to operate in accordance with the volume of sales that we can achieve at the present time and expect to increase production once we have further clarity on logistics corridors.”

“The group continues to adapt to its present circumstances, as demonstrated by our increased focus on producing direct reduction pellets, with this higher grade product typically receiving an additional premium in the market."

Reporting by Frank Prenesti at Sharecast.com