Ferrexpo trades profitable in second quarter

14th Jul 2009 07:11

Iron ore firm Ferrexpo said it produced at full capacity and traded profitable in the second quarter.Total pellet production in the second quarter rose by 21.1% compared with the previous three month period and was up by 3.8% compared to the equivalent quarter last year. Higher grade 65% Fe pellet output increased by 4.3% in the first half of 2009 compared to the same period last year.Sales volume in the first half exceeded production during the period, while production costs continue to trend downwards."Freight rates from the Black Sea to China did put pressure on our average achieved DAF/FOB prices during the period, but this is likely to prove a temporary phenomenon," said chief executive Kostyantin Zhevago."The outlook for iron ore is improving for the next quarter, particularly in our Traditional markets, which will reduce our reliance on the Asian seaborne spot market to some degree," he added.Ferrexpo will release its results for the six months ending 30 June on 5 August.