Ferrexpo daily pellet output drops 14% m/m in September

Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO
LN) produced 723 kt of pellets in September, which amounts to 24.1 kt per day,
or a 14.1% m/m drop, according to Concorde Capital’s analysis of the company’s
3Q21 production report released on Oct. 6.

In 9M21, Ferrexpo’s pellet output amounted to 8.16 mmt
(29.9 kt per day), or 0.3% more yoy.

Ferrexpo noted in the report that its 3Q21 pellet
production volume, 2.60 mmt, dropped 9% qoq due to a planned pelletizer
maintenance in September and an upgrade of the fourth pelletizer during 3Q21.

Dmytro Khoroshun: Ferrexpo’s
daily production rate should rise to 33-34 kt in 4Q21 as a result of pelletizer
upgrades, all four of which have now been completed.

We again lower our estimate for Ferrexpo’s 2021
pellet production volume to 11.2 mmt (30.7 kt per day, unchanged yoy).