Yesterday, Ferrexpo announced its production results through 11M09. The company continued to produce at full capacity. Pellet production rose by 1% m-o-m in November to 792 k t, the highest level this year. Through 11M09, pellet output is 8 mln t, -4% y-o-y.

The share of pellet production from purchased iron ore grew by 50% m-o-m to reach 8% of total output in November. This indicates that mining volumes have fallen, but whether this is temporary or not is unclear. Ferrexpo plans to increase stripping works over the next two to three years in order to expand its internal iron ore supply and raise pellet output to 9.5 mln t p.a.