Ferrexpo pellet output drops 6% m/m in January

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN, FXPOLN) produced 905 kt of pellets in January (29.2 kt per day),
which is a 5.8% m/m decrease, Interfax-Ukraine reports.

In December, Ferrexpo produced 961 kt of pellets, and
the daily rate was 31.0 kt, flat m/m. In 2017, Ferrexpo’s pellet output
amounted to 10.44 mmt, a 6.8% yoy drop.

Dmytro Khoroshun: We expect Ferrexpo to produce 10.6-11.0 mmt of pellets in 2018,
resulting in 29-30 kt per day and a 1-5% yoy gain. We retain our neutral view
on FXPOLN Eurobonds.