Ferrexpo said its output went down in December 2014 due to limitations of electricity supplies to its companies. Spot sales of iron ore also fell. If things don’t change in Q1 2015, Ferrexpo will choose long-term contracts as its priority.
The company has lowered its expected iron ore manufacture volume for December 2014 by 140 thousand tons. It said it had enough stocks of iron ore to satisfy the demand, but it would have to lower its output if the electricity shortage persists.
At the same time to compensate for the overall decrease in manufacture Ferrexpo plans to increase its 65% iron ore mining.
According to JP Morgan, in December 2014 ore manufacture at Ferrexpo totaled 85% of its capacities.
In case of problems with electricity raw materials output in 2015 will be down by 4%, to 11.5 million tons.
In January-November 2014 Ferrexpo’s iron ore raw materials output went up by 3%, to 10.2 million tons, YoY. (Ukrainian metal)