Ferrexpo's pellet production climbs 1.2% yoy in July

Ferrexpo (FXPO LN) increased pellet output 1.2% yoy to 750.5 ths mt in July, the company said in a monthly production report released yesterday. During the period, the company produced 2,488 ths mt of iron ore (up 3.0% yoy), 905.6 ths mt of concentrate (down 2.4% yoy), 390.7 ths mt of 62% Fe pellets (down 0.2% yoy), and 359.8 ths mt of 65% Fe pellets (up 2.7% yoy). Ferrexpo’s production from purchased raw materials/tolling decreased 93.9% yoy to only 5 ths mt. Ferrexpo said its pellet production ran at full capacity in July, as it has since March. Andriy Gerus: We forecast stable production for the company in the coming months, backed by strengthened demand from steelmakers. Yesterday, Ferrexpo’s stock price rebounded 12.7% on the news, and we expect production numbers for August to be another trigger.