Ferrexpo daily pellet output jumps 12% m/m in August

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 909 kt of pellets in August, which amounts to 29.3 kt per
day, an 11.9% m/m increase, according to our analysis of data reported by
Interfax-Ukraine on Sept. 17.

In 8M19, Ferrexpo’s pellet output amounted to 7.07 mmt
(29.1 kt per day), a 2.9% yoy increase.

Dmytro Khoroshun: Apparently,
Ferrexpo continued operating all four of its pelletizers in August. Therefore, July’s production rate drop
was not related to the 75-day pelletizer maintenance Ferrexpo plans for 2H19.

We continue to expect Ferrexpo’s 2019 production volume
to be in line with the company’s guidance of 10.6 mmt (about 29.1 kt per day),
flat yoy.