Ferrexpo daily pellet output grows 15% m/m in January

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 977 kt of pellets in January, which amounts to 31.5 kt per
day, a 15.4% m/m increase, according to our analysis of data reported by
Interfax-Ukraine on Feb. 13.

Dmytro Khoroshun: The return
of Ferrexpo’s daily production rate to above 31 kt per day in January indicates
that the company had finished the refurbishment of one of its four pelletizing
lines in the second half of December, as was planned.

We tentatively expect Ferrexpo’s 2020 production
volume to be 10.5-11.4 mmt (29-31 kt per day), or up to 8% 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 earlier guidance of boosting its production volume to above 11 mmt
in 2020. However, because of the coronavirus risks, we see a possibility of Ferrexpo’s
production volume remaining flat yoy in 2020, at 10.5 mmt.