Ferrexpo ups pellets production by 76% to 3.3 million tons in H1, 2024

In January-June 2024, compared to the same period in 2023, Ferrexpo plc (UK), which controls Poltava Mining and Yeristovo Mining (both located in Horishni Plavni, Poltava Region), increased the production of pellets by 76% to 3.297 million tons.

This is stated in the company's message, the Ukrainian News agency reports.

In the first half of the year, all pellets were produced from ore with an iron content of 65%.

The company also produced 429,900 tons of concentrate (with 67% iron content).

Compared to the first quarter of 2024, the production of pellets decreased by 19% times.

" In the first half of the year, we quickly brought previously idled capacity back into operation, demonstrating the flexibility we have built into our operations and maintained over the past few years. Thanks to the reduction of the time of railway transportation to Ukrainian seaports and the restoration of access to customers from the countries of the Middle East and Asia, this led to an improvement in the cycle of conversion of monetary funds. Although we took advantage of the opportunity to produce, export and sell more, the higher iron ore prices we benefited from in Q1 did not carry over into Q2. This, combined with higher electricity prices, led to lower margins at the end of Q2,” said the financial director of the company, Mykola Klavdiiev.

As the Ukrainian News agency earlier reported, Ferrexpo ended 2023 with a loss of USD 85 million, while the company ended 2022 with a profit of USD 220 million.

In 2023, Ferrexpo reduced the production of pellets by 36.5% to 3.8 million tons.

The majority shareholder of the Ferrexpo group is Kostiantyn Zhevaho.