In 2023, the Ferrexpo plc company (the United Kingdom), which controls the Poltava and Yeristovo Mining and processing plants (both in the Poltava Region), decreased the production of pellets by 36.5% year over year to 3.845 million tons.
This follows from a statement by the company, the Ukrainian News Agency reports.
All pellets were produced from ore with an iron content of 65%.
The company also produced 307,000 tons of concentrate (with 67% iron content).
In the fourth quarter of 2023, compared to the third quarter of 2023, due to logistics constraints and falling market demand company, the company decreased the production of pellets twice to 627 million tons.
“Ukraine's recent success in opening up Black Sea export corridors has permitted some to recommence shipping out of certain ports. When the time is right, Ferrexpo plans to start up an additional pellet line and resume exports via this route, provided it is safe and cost effective. It is also encouraging to note that iron ore prices strengthened over 20% during the final quarter, driven by China's support for the more steel-intensive sectors of its economy, and have continued to hold up well into the New Year. We also note the early signs of an uptick in pellet demand in Europe. These factors combined could be supportive of our large fixed cost base and higher logistics costs. In my opinion, improved demand and higher prices bode well for the year ahead for Ferrexpo," Lucio Genovese, Interim Executive Chair, said.
As the Ukrainian News Agency earlier reported, in the first six months of 2023, Ferrexpo plc decreased its profit three times, or by USD 55.1 million, to USD 27 million, reducing earnings 2.8 times, or by USD 601.9 million, to USD 334 million year over year.
In 2022, Ferrexpo reduced the production of pellets by 46% year over year to 6.1 million tons.
In 2022, the company reduced its profit four times to USD 220 million, reducing its revenue twice to USD 1.25 billion.
The majority shareholder of the Ferrexpo group is businessman Kostiantyn Zhevaho.
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