Ferrexpo daily pellet output dropped 13% m/m in August

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 870 kt of pellets in August, which amounts to 28.1 kt per
day, or 13.0% less m/m, according to Concorde Capital’s analysis of the data
reported Sept. 20 by Interfax-Ukraine.

In 8M21, Ferrexpo’s pellet output added 1.0% yoy to
7.44 mmt, or 30.6 kt per day.

Dmytro Khoroshun: The m/m
production drop might be related to an upgrade of the fourth pellet line that Ferrexpo planned for 3Q21.

Ferrexpo’s daily production rate should rise to 33-34
kt in 4Q21, resulting in 2021 production volume of 11.5-11.6 mmt (31.4-31.7 kt
per day), or 2-3% more yoy, we expect.