Ferrexpo daily pellet output drops 11% m/m in March

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN, FXPOLN) produced 847 kt of pellets in March, which amounts to 27.3 kt
per day, an 11.3% m/m decrease, according to our analysis of the company’s 1Q19
production report released on Apr. 5.

In 1Q19, Ferrexpo’s pellet output amounted to 2.54 mmt
(28.2 kt per day), a 1.8% yoy decrease.

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. Ferrexpo’s
Eurobonds are to be redeemed in full on Apr. 8.