Ferrexpo invests in the growth of production of iron ore pellets

2 August, London. British Ferrexpo plc, the Ukrainian businessman Konstantin Zhevago, a controlling Ukraine, in particular, Poltava and Ferrexpo yeristovo mining complexes (PGOK and EGOK), predicts continued strong demand for pellets in 2018-2019 and continued investment in increasing their output to 12 million tonnes by 2020.

It is expected that the demand for high-quality iron ore, in particular pellets, will remain high in the second half of 2018 and in 2019“, – stated in the forecast in the published semi-annual unaudited report of Ferrexpo on the London stock exchange on Thursday.

The company expects continuing growth in underlying profit in the second half of the year amid rising sales. It is noted that cost increases will be at a lower level compared to margin growth.

Analyzing the market conditions, the company points to its stability for high-quality iron ore products, including pellets. The growth in the margin of the pellets reflects the high demand for high quality products: the actual average FOB price increased by 5 percent compared to the first half of 2017.

Ferrexpo is a Swiss iron ore company with assets in Ukraine. The main activity is the manufacture and export of high quality iron ore pellets used in steel production.

Ferrexpo group is the largest producer and exporter of pellets among countries b. Of the Soviet Union. In 2017, the company produced 10.4 million tons of iron ore pellets. The main customers are steel mills from Austria, Slovakia, Czech Republic, Germany and other European countries as well as Japan, Taiwan, South Korea and China.

Shares of Ferrexpo listed on the main market of the London stock exchange.