Ferrexpo daily pellet output jumps 15% m/m in February

Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO
LN, FXPOLN) produced 862 kt of pellets in February, which amounts to 30.8 kt
per day, a 15.0% m/m increase, Interfax-Ukraine reported on March 18.

In 2M19, Ferrexpo’s pellet output amounted to 1.69 mmt
(28.7 kt per day), a 1.0% yoy increase.

Dmytro Khoroshun: We
tentatively expect Ferrexpo’s 2019 production volume to be in line with the
company’s guidance of 10.6 mmt (about 29.1 kt per day), flat yoy. Nevertheless,
we note the opportunity for Ferrexpo to boost its sales and production volumes
in 2019 because of the Vale mine disaster in Brazil. We retain our neutral view
on FXPOLN Eurobonds.