Central Iron Ore increases 1Q12 pellet output 15%

Central Iron Ore (CGOK UK) increased 1Q12 pellet production 15% yoy to 611 kt, Interfax reported. The company’s iron ore concentrate output inched down 0.9% yoy to 1.5 mmt over the period.

Roman Topolyuk: Seemingly positive, we view the increase as largely neutral as it came solely on a low base effect – the company’s only pelletizing machine was halted for planned maintenance in March 2011. We expect this year’s production will also be affected by scheduled maintenance works later in the year, which should level off the full-year numbers.