The Level I Intensive Care Hospital and the Primary Health Care Center in Horishni Plavni has received two Renault Master ambulances – another consignment of aid from Ferrexpo mining company, whose main production assets are located in this city.
“The total cost of the vehicles is about UAH 3 million. This delivery was carried out as part of the large Ferrexpo assistance program to combat COVID-19,” the company said in a press release.
Mayor of the city Dmytro Bykov thanked for the systematic support provided by the Ferrexpo mining and processing plants (GOK).
“Unfortunately, the statistics of COVID-19 cases are not encouraging with good news, the situation is also complicated by seasonal outbreaks of other viral diseases. We do not stop assistance programs, studying the needs and systematically transferring the necessary equipment, transport, medicines and protective equipment to hospitals,” the director of the charitable foundation of Poltava GOK, Viacheslav Miniazev, said.
In March of this year, the Ferrexpo board of directors decided that the group’s enterprises, including Poltava, Yeristovo and Belanovo GOKs, will allocate $ 2.5 million in assistance to medical institutions to fight the COVID-19 pandemic in Poltava region, as well as within the framework of national programs throughout the territory Ukraine. It was noted that, first of all, the money will be used for the purchase of artificial lung ventilation devices, test systems for detecting coronavirus and other necessary equipment, and further distribution of assistance will be carried out in accordance with the priority needs of medical institutions.
Ferrexpo is an iron ore company with assets in Ukraine. The London Stock Exchange (LSE) trades the shares of British-based Ferrexpo plc, which owns 100% of the shares of Swiss-based Ferrexpo AG, which, in turn, holds a 100% stake in Poltava GOK, 100% of Yeristovo GOK and 99.9% of Belanovo GOK. Kostiantyn Zhevaho via Fevamotinico S.a.r.l. owns 50.3% of Ferrexpo shares.
Ferrexpo Plc, which controls Poltava and Yeristovo mining enterprises in Ukraine, ramped up pellet production by 3.5% in January-July 2020 year-over-year, to 6.38 million tonnes.
A representative of the company told Interfax-Ukraine that over the period concentrate production grew by 4.3%, to UAH 8.04 million tonnes.
In July alone, the company made 780,000 tonnes of pellets, 1.04 million tonnes of concentrate, while in June, some 860,000 tonnes of pellets and 1.115 million tonnes of concentrate were produced.
Britain’s Ferrexpo Plc, controlling Poltava Mining and Yeristovo Mining, in January-June 2020 increased iron ore concentrate processing – pellets are made of it – by 6.3% year-over-year, to 7.002 million tonnes.
The enterprise told Interfax-Ukraine that in June 1.115 tonnes of concentrate was produced.
In H1 2020, 5.598 million pellets were made, including 860,100 tonnes in June alone.
Ferrexpo plc, whose main assets are Ukrainian iron ore producers Poltava and Yeristovo mining and processing plants, raised iron ore pellet production 4.6% year-on-year in H1, 2020, to 5.598 million tonnes, the company said in a press release.
Output of pellets with 65% Fe-content grew 7.1% year-on-year, to 5.5 million tonnes while output 62% Fe fell 54.4%, to 98,000 tonnes.
Ferrexpo did not produce pellets from third-party feedstock.
Pellet production rose 5.4% quarter-on-quarter in Q2, 2020, to 2.873 million tonnes, including 2.848 million tonnes of 65% Fe, up 7.4%, and 24,700 tonnes of 62% Fe, down 66.3%.
The company’s facilities “continue to operate with minimal impact on operations to date, and the company continues to closely monitor its workforce,” Ferrexpo said in a COVID-19 update. “The infection rate in the local communities surrounding the company’s operations remains low,” it said.
The London-listed Ferrexpo plc owns 100% of Ferrexpo AG, which owns 100% of each of Poltava Mining and Yeristovo Mining and 99.9% of Belanovo Mining. Ferrexpo’s main customers are steelmakers in Austria, Germany, Japan, South Korea, Taiwan, China, Slovakia, the Czech Republic, Turkey, Vietnam and the United States. Pellet production grew 0.8% to 10.519 million tonnes on 2019.
British-based Ferrexpo Plc, which controls Poltava and Yeristovo mining enterprises in Ukraine, increased the total production of pellets by 7.4% in January-March 2020 compared to the same period in 2019, to 2.725 million tonnes. According to the company’s press release on Tuesday, April 7, the total production of pellets with 65% iron content (Ferrexpo Premium Pellets and Ferrexpo Premium Pellets plus) amounted to 2.652 million tonnes (an increase of 9,1%), with 62% iron content (Ferrexpo Basic Pellets) some 73,330 tonnes (a decrease of 31.8%).
There was no pellet production from third party concentrate in Q1 2020.
Sales are expected to reach about 2.8 million tonnes in the first quarter 2020, compared to 2.6 million tonnes in the first quarter 2019 (an increase of 7.7%).
“Production in Q1 2020 was not impacted by the COVID-19 virus [disease]. Ferrexpo continues to take active measures to help protect our workforce and local communities against the spread of the virus,” the enterprise said in a press release.
In 2019, there was also no pellet production from third party concentrate, while in 2018 some 101,000 tonnes of pellets were produced.
Ferrexpo is a Swiss iron ore company with assets in Ukraine. Its core business is production and export of high quality iron ore pellets used in steel production.
Ferrexpo mining company, with the main assets in Ukraine, increased its share in the international market of pellet suppliers to 8% in 2019 compared to 7% in 2018.
According to the company’s annual report released on the London Stock Exchange on Wednesday, March 17, Ferrexpo maintained its third position in the world ranking of pellet exporters with 10.3 million tonnes (10.2 million tonnes in 2018). Vale-group (Brazil-Oman) with the volume of 32.7 million tonnes takes the first place according to the results of the year, and the Swedish LKAB with 16.3 million tonnes takes the second place.
The Metalloinvest group (Russia) takes the sixth place with export deliveries of 7.2 million tonnes (4.2 million tonnes in 2018), the Metinvest group (Ukraine) takes the tenth place with supplies of 5 million tonnes (5.4 million tonnes in 2018), the Severstal Group (Russia) takes the eleventh place with supplies of 3.8 million tonnes (5.5 million tons in 2018).
In general, the international market for global pellet exporters at the end of 2019 is estimated at 135 million tonnes, decreased by 3% compared to 2018 (139.6 million tonnes).
The company predicted that, high barriers to entry, especially given relatively low pellet premiums, are unlikely to incentivise new pellet supply in 2020. Incumbent producers can balance supply by switching production from blast furnace to direct reduction pellets or from international export to domestic consumption. In 2020, pellet seaborne supply should not increase due to international prices moderating to historical levels and continued supply issues from Brazil. An extended period of low pellet premiums could result in some capacity reduction for producers with high pellet conversion costs. At the end of 2019, industry levels of pellet stocks were higher than the historical average and it may take some time for the market to absorb these, especially taking into account the impact of the COVID-19 virus. This could prevent pellet premiums from rising in the short term, the company said.
In 2019, Ferrexpo reduced the volume of pellet deliveries by key market regions to Central and Western Europe, as well as North East Asia (NEA), sharply increasing sales to China and Southeast Asia (SEA).
Thus, the share of pellets sales in tonnes to Central Europe is the largest one and amounted to 36% (47% in 2018). In 2019, the share of sales in Western Europe decreased from 16% to 13%, in Northeast Asia it decreased from 17% to 16%, in Turkey, the Middle East, and India sales decreased from 6% to 5%. Deliveries to China and South East Asia sharply increased from 13% to 30%. There were not any pellet deliveries to North America in 2019, while in 2018 it amounted to 1%.
In total, some 10.312 million tonnes of pellets were sold in 2019, compared with 10.227 million tonnes in 2018.
“Ferrexpo benefits from a diversified sales portfolio with leading steel mills throughout the world, while its logistics routes to customers provide a competitive advantage given Ukraine’s central geographic location. Ferrexpo’s average shipping duration to Asia is 30 days compared to its main pellet-producing competitors in Brazil (40 days), Canada (55 days) and Scandinavia (50 days). Ferrexpo is also very competitively placed in terms of shipment days to Europe and Turkey. This ensures that weakness in one region, can be compensated by sales into other regions,” the company said.
