Ferrexpo profits soar as demand recovers

5th Aug 2010 08:30

Ukrainian iron ore producer Ferrexpo saw profits soar in the six months to June 30 as demand for the commodity from steel makers rebounded following the global economic crisis.Pre-tax profits for the period soared to $183m from $37m in the same period the previous year as revenues jumped to $526m from $302m. Production was up by 18%, sales volumes by 13% and prices rose by between 90% and 120%.'European steel mills continued to re-stock iron ore pellets following very low inventory levels in 2009 and to operate at higher levels, while Chinese iron ore requirements continued to underpin world demand,' Ferrexpo said.'Due to the reduction of capacity by the major iron ore pellet suppliers during 2009 demand for pellets outstripped supply in the first half of the year; this proved an ideal scenario for iron ore demand and pellet price recovery.'Chairmand Michael Abrahams said: 'The group is confident that it can continue to produce at full capacity and place all of its output through its established market presence thus underpinning our expectations for a strong financial performance for the rest of the year.'