Ferrexpo pellet output drops 8% yoy in 9M17
5 October 2017
Pellet output at
iron ore miner Ferrexpo (FXPO LN, FXPOLN) dropped 8.1% yoy to 7.65 mmt in 9M17,
according to its Oct. 5 production report. Pellet production from own iron ore
fell 8.1% yoy to 7.62 mmt in 9M17, while pellet production from third party
concentrate decreased 7.1% yoy to 0.02 mmt. In 3Q17, Ferrexpo’s pellet output
declined 1.7% qoq (or 4.3% yoy) to 2.49 mmt.
Andriy Perederey: Based
on the production results, Ferrexpo’s pellet output was 936 kt in September, or
a 17.2% m/m increase on an average daily basis. So our expectation about pellet
output returning to nearly full capacity utilization is becoming reality. But
we are keeping our forecast that Ferrexpo’s pellet output will be 10.4 mmt in
2017, or 6.8% less yoy. We retain also our neutral view on Ferrexpo Eurobonds.
on the production results, Ferrexpo’s pellet output was 936 kt in September, or
a 17.2% m/m increase on an average daily basis. So our expectation about pellet
output returning to nearly full capacity utilization is becoming reality. But
we are keeping our forecast that Ferrexpo’s pellet output will be 10.4 mmt in
2017, or 6.8% less yoy. We retain also our neutral view on Ferrexpo Eurobonds.
