Ferrexpo’s total pellet output declines just 0.4% q-o-q in 3Q11

Ferrexpo (LSE: FXPO LN, N/R) slightly decreased its total pellet output by 0.4% q-o-q in 3Q11 to 2.47 mln mt, the company reported in a press release yesterday. In 9M11, total pellet production was down by 2.5% y-o-y to 7.26 mln mt, due to a 5.0% y-o-y decline in lower grade 62% Fe pellet output, while production of higher grade 65% Fe pellets increased by 0.1% y-o-y. Ferrexpo reported an increase in 65% Fe pellet production in 3Q11 by 12.3% y-o-y and by 6.6% YTD. The company said its pellet output in the month of August (900,000 mt) was the second highest in its history. For more information on our view on political risk faced by Ferrexpo, please see our flash note dated September 21.