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Ferrexpo Focuses to Reduce Effect in Jan-Mar Caused by Power Reductions
= The company will reduce spot sale and prioritizes delivery under long-term contracts =
Pellets in the period of January-November 2014 produced by Ferrexpo of a Switzerland-based pellet company having been operating in Ukraine was 10.2 million tons, up 300 thousand tons or 3% from 9.9 million tons in the same period last year. Operations of that company are reported not to have been impacted by the recent difficulties in Ukraine.

Meantime, as a result of reduced power availability during the peak demand hours of the day, its total pellet production in December is expected to fall below its plan by about 140 thousand tons. This is due to lower domestic coal production and low stocks at coal-fired power stations but its December shipments are expected not to be affected.

While, the Ukrainian Government is looking to import coal and electricity as measures to mitigate this situation. The Government also allow companies to directly import electricity or generate it.

Ferrexpo intends to minimize the impact of power reductions in the quarter of January-March 2015 in co-operation with electricity generators and suppliers. So, the company will increase its production of premium pellets with 65% Fe and prioritize shipments for long-term customers while will reduce spot sale. It is expected to improve electricity supplies in the quarter of April-June when peak power demand falls seasonally. Meantime, the Ukrainian hryvnia is depreciating sharply to the US dollars and is still on the decrease but the company's liquidity is reported to be currently being held stable to ensure 2 months of operations and capital expenditures at current exchange rates.
last modified : Tue 06 Jan, 2015 [10:22]
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