Ferrexpo plc, a Swiss headquartered resource company with assets in Ukraine, aims to produce about 11.5-12 MnT Iron Pellets in the year 2014 and is quite confident of achieving the numbers.
In Jan-Dec 2013, the company had produced 10.8 MnT Pellets (up by 11.6% Y-o-Y) and exported 10.7 MnT. Ferrexpo manufactures Blast Furnace (BF) grade Pellets with Fe 62% and 65%.
A senior official at Ferrexpo told SteelMint, “Demand in Pellets is good and we anticipate to touch 11.5-12 MnT Pellet production in Jan-Dec 2014.
Offers to Chinese & Japanese buyers are standing at around USD 168-170/MT CFR for Fe 65% Pellets; prices are slightly on the lower side for European takers. We quote offers as per market sentiments pertaining to demand from long term supply contracts”.
Sources said “Ferrexpo is likely to touch 11.8-12 MnT Pellet production in 2014 and 15 MnT in 2015. It is importing Iron ore with Fe 66% from Russia.
One of the Swedish Pellet exporters is offering the material at lower prices to European buyers, because of which Ferrexpo has quoted slightly lower offers to Europe”.
The company has two Iron ore mines and has been mining for over 30 years. It’s installed capacity of Pellet making stands at 12 MnT pa.
The company processes Iron ore with 30% Fe for making Pellets, which is used for 100% export. About 50% of the material is exported to Europe; the rest to China and Japan based Steel mills for usage in blast furnaces.
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