Ferrexpo daily pellet output drops 5.6% m/m in December
8 January 2019
Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN, FXPOLN) produced 938 kt of pellets in December, which amounts to 30.3
kt per day, a 5.6% m/m decrease, according to our analysis of the company’s
4Q18 production report released on Jan. 8.
In 2018, Ferrexpo’s pellet output amounted to 10.61
mmt, a 1.6% yoy increase.
Ferrexpo noted in its report that its 2019 production
volume is expected to be in line with that of 2018 as a result of ongoing
maintenance. The company also provided further details of its 2018 performance:
sales volume of 10.2 mmt (vs. 10.5 mmt in 2017), average received price 9%
higher than in 2017, and cash costs of USD 44 per tonne (vs. USD 33 per tonne
in 2017).
Dmytro Khoroshun: Ferrexpo’s 2019 production volume guidance, 10.6 mmt, is below the 11.0 mmt it expected in June, which is slightly negative. We retain our neutral
view on FXPOLN Eurobonds.
