- Disruptions from Russia-Ukraine war affect operations
- Concentrate output rises despite logistical constraints
Ferrexpo’s total pellet production declined 24% q-o-q to 656,650 tonnes (t) in Q3CY’26, compared with 860,213 t in Q2, amid liquidity constraints, logistical disruptions, and a temporary production suspension. The company’s cumulative pellet output during January-September 2026 fell 27% y-o-y to 2.04 million tonnes (mnt), compared with 2.81 mnt in the corresponding period last year.
The decline came as the Ukraine-focused iron ore producer continued to face operational and financial challenges arising from the ongoing war, restricted export logistics and limited access to working capital.
Total commercial production, including pellets and concentrate, declined 19% q-o-q to 779,975 t in Q3, from 963,409 t in Q2. Cumulative commercial production fell 54% y-o-y to 2.34 mnt during the first nine months of 2026 against 5.07 mnt in the year-ago period.
DR pellet output rises despite overall production decline
Despite lower overall production, Ferrexpo recorded a significant increase in direct reduction (DR) pellet output during the January-September period. Production of DR pellets rose 272% y-o-y to 304,391 t, compared with 81,787 t in the corresponding period of 2025, reflecting the company’s continued focus on higher-value products.
However, quarterly DR pellet production declined 13% q-o-q to 141,220 t in Q3, from 163,171 t in Q2.
Meanwhile, production of Ferrexpo’s premium pellets fell 26% q-o-q to 515,430 t during the quarter.
Commercial concentrate production increased 20% q-o-q to 123,325 t, although output for January-September plunged 87% y-o-y to 294,346 t.
Restricted port access limits recovery prospects
Despite the production restart, restricted access to Ukrainian ports remains a major constraint on Ferrexpo’s ability to increase exports and ramp up production. Disruptions to its Black Sea export route have also affected its ability to deliver shipments under arrangements linked to a proposed secured trade finance facility, delaying the finalisation of the agreement.
Ferrexpo said its production capacity remains significantly below pre-war levels, with export limitations restricting the scope for a sustained recovery. The company continues to prioritise liquidity management and operational continuity as it navigates the challenging operating environment.
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