Ferrexpo inks long-term deals for 90% of output

In a management statement released this morning, Ferrexpo (FXPO) said that it signed long-term contracts for approximately 90% of its output, with the remainder comprising of trial cargoes to prospective new customers. The company said that as of 3Q09, it reverted to selling the majority of its production to long-term contract customers, and that it has settled prices with about 85% of its customers by volume (prices will be effective from 4Q, most through 1Q10). New contract prices correspond to a 48% yoy decrease. Konstantin Zhevago, Ferrexpo’s CEO, said that switching back to contract-based terms returns the company to its higher margin core business and underscores its quality customer relationships. He said that the company’s European customers are now taking full contract volumes.