War in Ukraine cuts Ferrexpo production by 68%

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Ferrexpo (LSE: FXPO) said today that total iron ore pellet production for 3Q 2022 was 0.8 million tonnes, a year-on-year decrease of 68%.

The company has operations in Ukraine, which were curtailed due to the war.

Company CEO Jim North said the company is changing focus.

“Having continued to operate throughout the war in Ukraine, which is a credit to our operating and marketing teams, 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 at the present time," said 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.”

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