8th Oct 2019 08:08
(Alliance News) - Iron ore pellets producer Ferrexpo PLC on Tuesday reported a drop in third quarter production and cut its annual production guidance blaming the current market environment.
For the three months to September 30, the company produced 2.5 million tonnes of pellets, down 9.8% from 2.8 million in the second quarter. Production of high quality 65% Fe pellets fell 9.7% quarter-on-quarter to 2.4 million, while 62% Fe pellets output declined 11% to 95,990.
Pellet production for the first nine months of 2019 increased 1.7% year-on-year to 7.9 million tonnes from 7.8 million, with 4.2% growth in 65% Fe pellets production to 7.6 million and a 36% drop in 62% Fe pellets output to 310,990.
The Swiss headquartered iron ore company expects total 2019 production to be in the range of 10.4 and 10.6 million tonnes, down from previous guidance of 10.6 million. The company stopped short of providing specific reasons behind the guidance cut, merely blaming the "current market environment".
In 2018, Ferrexpo produced 10.6 million, a 2% increase compared to 2017.
Ferrexpo also said that the refurbishment of the company's final pellet line is set to begin later in October and will last for around 55 days. The refurbishment includes upgrade to the travelling grate feeding the pellet line which is expected to further increase productivity.
Shares in Ferrexpo were trading 1.4% higher in London on Tuesday morning at 158.50 pence each.
By Tapan Panchal; [email protected]
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