Ferrexpo daily pellet output jumps 16% m/m in October

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 980 kt of pellets in October, which amounts to 31.6 kt per
day, a 16.0% m/m increase, according to our analysis of data reported by
Interfax-Ukraine on Nov. 15.

In 10M19, Ferrexpo’s pellet output amounted to 8.87 mmt
(29.2 kt per day), a 1.9% yoy increase.

Dmytro Khoroshun: Ferrexpo’s
daily production rate was the highest in October since November 2018, but is expected to drop to about 25 kt per day in
November and most of December because of the planned 55-day major refurbishment
of one of its four pellet lines that was supposed to start on Oct. 28.

We continue to expect Ferrexpo’s 2019 production
volume to be 10.3-10.5 mmt, or 1-3% lower yoy.