Ferrexpo daily pellet output drops 12% m/m in July

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 780 kt of pellets in July, which amounts to 25.2 kt per day,
or a 12.2% m/m decrease, according to Concorde Capital’s analysis of data
reported by Interfax-Ukraine on Aug. 21.

In 7M20, Ferrexpo’s pellet output rose 3.5% yoy to
6.38 mmt, or 30.0 kt per day.

Dmytro Khoroshun: Ferrexpo’s
daily production rate dropped m/m for the third month in a row, and the July
rate is the lowest since May 2018, which is negative.

We are lowering our expectation for Ferrexpo’s 2020
production volume to 10.5-11.2 mmt (28.7-30.6 kt per day), or up to 6% more
yoy. The latest production volume guidance from the company was for a 9.3% yoy increase to 11.5 mmt
(31.4 kt per day) in 2020.