Ferrexpo daily pellet output jumps 15.5% m/m in April

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 946 kt of pellets in April, which amounts to 31.5 kt per day,
a 15.5% m/m increase, according to our analysis of the data Interfax-Ukraine
reported on May 16.

In 4M19, Ferrexpo’s pellet output amounted to 3.49 mmt
(29.0 kt per day), a 1.9% 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.