Ferrexpo daily pellet output slides 1.1% m/m in May

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 967 kt of pellets in May, which amounts to 31.2 kt per day,
a 1.2% m/m decrease, according to our analysis of the data Interfax-Ukraine
reported on July 1.

In 5M19, Ferrexpo’s pellet output amounted to 4.45 mmt
(29.5 kt per day), a 6.4% yoy increase.

Dmytro Khoroshun: We tentatively 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.
Nevertheless, we note the opportunity for Ferrexpo to boost its sales and
production volumes in 2019 because of the Vale mine disaster in Brazil.