(Alliance News) - Ferrexpo PLC on Wednesday said that iron ore pellet production grew annually in the third quarter of the year, following the pelletiser upgrade work completed in previous quarters, but fell 9% from the previous quarter.
The Ukraine-focused iron ore pellet producer's production in the three months to September 30 was 2.6 million tonnes, up 2% on the same period last year.
It reported a 9% drop in production compared to the second quarter, but attributed this to completed upgrade work and planned maintenance on its fourth pelletiser line in September.
Notably, the proportion of higher grade direct reduction pellets increased to 8% of total pellet production during the third quarter, compared to 3% in the second.
In the nine months to September 30, Ferrexpo's pellet production came in at 8.2 million tonnes, which was 0.3% higher year-on-year.
"I am pleased to report our continued progress in terms of product quality and product volumes, with upgrade work completed on the pelletiser during the quarter," said interim Chief Executive Jim North.
"Through continued investment in the group's concentrator and pelletiser facilities, we are creating a platform for future growth in product volumes, whilst simultaneously increasing the overall grade of our production."
Back in August, Ferrexpo tipped that its market balance for pellet sales was "returning to historic levels" after a temporary shift in sales to China in the last year.
Shares were down 3.6% at 299.60 pence in London on Wednesday.
By Josie O'Brien; josieobrien@alliancenews.com
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Ferrexpo (FXPO)