Ferrexpo Plc, an iron ore pellet producer, announced an 18pct QoQ increase in production during Q2, despite the ongoing conflict in Ukraine and related energy and logistics challenges. The company successfully operated two pelletizer lines, with the second line recommissioned earlier in the year, providing additional flexibility and capacity.
During Q2 2023, the company achieved a total iron ore pellet production of 1.066 mln tons, representing an 18pct increase compared to the previous quarter. This growth was driven by stable production from the first pellet line and the initial contribution from the second pellet line. Furthermore, the company’s production in the first half of 2023 surged by 57pct year-on-year, reaching 1.967 mln tons.
Ferrexpo continued to export its sales via rail and barge to Central-Eastern Europe and the Black Sea. In Q2 2023, the company’s sales amounted to 1.2 mln tons, a significant 45pct increase compared to the previous quarter. For the first half of 2023, sales reached 2.1 mln tons, reflecting a 15pct increase compared to the same period in 2022.
In contrast, the company experienced a drastic reduction in production in 2022 due to logistical and supply constraints, disrupted power supply, high inflation, a displaced workforce, and damaged infrastructure.
Ferrexpo, headquartered in Switzerland, operates as an iron ore company with assets in Ukraine. It specializes in producing high-grade iron ore pellets. Prior to Russia’s invasion of Ukraine in February 2022, Ferrexpo was the world’s third largest exporter of pellets to the global steel industry.
