Ferrexpo pellet production drops due to maintenance programme
Ferrexpo reported a drop in pellet production for the third quarter on Thursday due to its ongoing pellet line maintenance programme.
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Pellet production fell to 2.49 million tonnes in the third quarter from 2.53m in the second, with production in the first nine months of the year down to 7.63mt from 8.30mt in the same period a year ago.
Shore Capital said the result was a surprise as it had expected the maintenance to be completed in the second quarter of this year, or at the latest, early in the third quarter.
"At its interim results in August 2017, Ferrexpo was guiding for production in H2 2017 to be “marginally ahead” of H1 2017, a target which we believe to be still achievable.
"It is worth remembering that Ferrexpo recorded a strong financial performance in H1 2017 despite lower production arising from the aforementioned maintenance and refurbishment programme. The company was expecting demand for high-quality iron ore, 'especially pellets', to 'remain strong' through H2 2017."
At 0820 BST, the shares are down 2.1% to 296.70p.