Ferrexpo targets European exports amid interrupted maritime trade

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Iron ore pellet producer Ferrexpo, whose quarries are located in Ukraine’s Poltava region, is trying to export some of its production through Ukraine’s western land border, the company said. Kallanish.

Late last week, the company declared force majeure on sea shipments after export activity at the port of Pivdenny in southwestern Ukraine, where it has a berth for its expeditions, has been temporarily suspended at the request of the authorities (see passim Kallanish).

Ferrexpo exports its product by train to seaports. However, after the Russian invasion of Ukraine, the operations of Ukrainian rail operator Ukrzaliznytsia were halted and the ports stopped handling export cargoes.

“We ship some products to the western border of Ukraine to customers in Europe,” the company says. “The situation in Ukraine remains complex and volatile, and the capacity of the railways in this direction remains uncertain.”

Ferrexpo says it cannot estimate the volume of product that can be exported and delivered to European customers.

The company also postponed the release of its annual report, which was scheduled for March 16.

“This decision was taken in the context of the ongoing conflict in Ukraine, which requires special attention from management and, therefore, affects the normal internal processes for preparing the group’s financial results for the last year” , explains the producer.

Ferrexpo decreased its product shipments by rail to Europe in January by 8.9% year-on-year to 953,700 tonnes (see passim Kallanish).

In 2021, Ferrexpo reduced its product shipments by rail by 4.7% to 11.25 million tonnes.

Last year, the company maintained its pellet production at the 2020 level – 11.2 million tons – due to production interruptions after the modernization of the pellet factories.

Svetoslav Abrossimov

Bulgaria

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