5th Oct 2016 06:33
LONDON (Alliance News) - Ferrexpo PLC on Wednesday said overall production in the first nine months of the year was slightly lower as it focused on producing higher quality iron ore pellets, which now make up the vast majority of the company's production profile.
The producer operating in Ukraine produces pellets varying in grades, some at the premium-grade of 65% iron and others at 62% iron. As the transition toward more higher-grade production continues, production of 65% pellets accounted for 94% of all production in the first nine months of 2016 compared to last year when they represented 87% of total production.
However, the rise in the production of higher-grade pellets has not been as quick as the fall in lower-grade pellet production, meaning overall production of both types of pellets in the first nine months of 2016 to fall 4.6% year-on-year to 8.3 million tonnes from 8.7 million tonnes.
Total production was made up of 7.8 million tonnes of 65% pellets and 1.1 million tonnes of 62% pellets. Production of 65% pellets rose 3.7% year-on-year but production of 62% pellets was down 55%.
Importantly, more and more production is coming from Ferrexpo's own ore. Production of higher-grade pellets from the company;s own ore was up 8.6% in the first nine months of the year whilst production of lower-grade pellets fell 55% - however, the amount of ore sourced from third parties to create both types of pellets was 94% lower than the previous year.
By Joshua Warner; [email protected]; @JoshAlliance
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