Ferrexpo daily pellet output jumps 23% m/m in April

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 955 kt of pellets in April, which amounts to 31.8 kt per
day, or a 23.1% m/m increase, according to Concorde Capital’s analysis of data
reported by Interfax-Ukraine on May 25.

In 4M20, Ferrexpo’s pellet output amounted to 3.68 mmt
(30.4 kt per day), 5.6% more yoy.

Dmytro Khoroshun: Ferrexpo is
back to producing at normal rates in April and the March slump in pellet output to 25.8 kt per day
seems to be a one-off.

We tentatively expect Ferrexpo’s 2020 production
volume to be 10.5-11.5 mmt (28.7-31.4 kt per day), or up to 9% more yoy. The
recent production volume guidance from the company was for a 9.3% yoy increase to 11.5 mmt (31.4 kt per day) in 2020.