Ferrexpo plans to boost production 9% in 2020 to 11.5 mmt

Ukraine’s largest iron ore pellet exporter
Ferrexpo (FXPO LN) plans to boost its pellet production volume 9.3% yoy in 2020
to 11.5 mmt, according to Interfax-Ukraine news agency, which cited Ferrexpo’s
corporate Facebook page.

In particular, Ferrexpo plans to increase its
production of pellets with 65% iron content by 9.5% yoy to 11.08 mmt and
production of pellets with 62% iron content by 4.2% yoy to 0.42 mmt.

Dmytro Khoroshun: We tentatively expect
Ferrexpo’s 2020 production volume to be 10.5-11.4 mmt (28.5-31.5 kt per day),
or up to 9% more yoy. The higher end of this wide range corresponds to Ferrexpo
producing at daily rates
comparable to that of January, and is in line with the company’s current
guidance. However, because of the coronavirus risks, we see a possibility of
Ferrexpo’s production volume remaining flat yoy in 2020, at 10.5 mmt.