Ukraine: Ferrexpo’s pellet output falls over 35% y-o-y in H1CY’26 amid power, liquidity constraints

• Pellet production hit by electricity shortfall
• High-grade concentrate output declines sharply 

Ukraine-based Ferrexpo’s total pellet production declined 36% y-o-y to 1.39 million tonnes (mnt) in H1CY’26 from 2.17 mnt in H1CY’25. The decline was primarily due to power supply disruptions following attacks on Ukraine’s electricity infrastructure, which temporarily suspended operations in January. Production resumed in February, but the company operated only one of its four pelletising lines during the period.

The company’s premium pellet (Fe 65%) production fell 41% y-o-y to 1.22 mnt from 2.09 mnt, while direct-reduction (DR) pellet (Fe 67%) output increased two fold to 163,171 tonnes (t) from 81,787 t in the year-ago period. Ferrexpo continued to prioritise higher-grade products and pellet supplies to its European customers amid constrained production capacity.

Meanwhile, commercial concentrate (Fe 67%) production fell 86% y-o-y to 171,021 t in H1 CY’26 from 1.22 mnt in H1 CY’25. The decline was driven by power constraints, liquidity and working-capital pressures, as well as Ferrexpo’s decision to prioritise pellet production. In H1 CY’25, the company had increased concentrate output to meet strong demand in China for its high-grade, low-alumina concentrate.

Overall, Ferrexpo’s commercial production (Pellet + Concentrate) declined 54% y-o-y to 1.56 mnt in H1CY’26 from 3.39 mnt in H1CY’25. The continued suspension of VAT refunds in Ukraine further constrained liquidity and forced the company to downscale production. Ferrexpo said, “Restoring production capacity will depend mainly on electricity availability and costs, logistics conditions and the resumption of VAT refunds.”