Ferrexpo at full capacity despite downturn

19th May 2009 08:20

Iron ore firm Ferrexpo said it is continuing to produce at full capacity and selling all of its output, albeit at lower prices.The firm said prices of iron ore sold to China are being pressured by high freight rates from the Black Sea. However, it added that a slight recovery in demand from Ukrainian and other European customers had reduced dependence on the seaborne market.The weaker Ukrainian currency is helping to ease production costs, Ferrexpo said."We expect pricing to remain under pressure in the current quarter and although there is a likelihood of improvements in the market, it is difficult to predict with certainty the outcome in the second half of the year," said chairman Michael Abrahams.Iron ore prices fell sharply towards the end of last year, in line with commodities generally as the global economic downturn hit demand.