Business
Logistics and Operations Update
Logistics and Operations Update.
About this update from Ferrexpo Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 13 June 2022 \n \n \n \n \n Ferrexpo plc\n \n \n \n \n (\"Ferrexpo\" or the \"Company\" or the \"Group\")\n \n \n \n \n \n \n \n \n \n Logistics and Operations Update\n \n \n \n Ferrexpo plc (LSE: FXPO), the world's third largest exporter of high grade iron ore pellets to the global steel industry, with operations in central Ukraine, announces the following update on its logistics export network and operations in Ukraine.\n \n \n \n Logistics Update \n \n \n \n As previously announced, Ukraine's Black Sea Ports remain closed and the Group has had to divert all of its iron ore pellet sales to European markets via Ukraine's diverse railway network, as well as via the Group's barging operations. Russia's invasion of Ukraine in 2022 has resulted in periodic disruption to the railway network across the country, with the national rail operator having to consistently repair and re-open damaged sections of the railway network following Russian air strikes.\n \n \n The Group has recently been notified of further infrastructure damage as a result of a Russian missile strike in southwest Ukraine, which has reduced the Group's ability to use its barging operations that serve European customers. The Group's barging operations accounted for 0.8 million tonnes of iron ore deliveries in 2021.\n \n \n Separately, the Group is in advanced discussions with additional port operators in central Europe for seaborne exports, whilst Ukraine's Black Sea ports remain closed.\n \n \n \n Operations Update\n \n \n \n As of the end of May 2022, the Group had produced 4.4 million tonnes of iron ore pellets, representing a level 8% below the same point in 2021. The Group has realised a combined 0.4 million tonne increase in iron ore inventories in the months of March, April and May 2022, which the Group will look to reduce as logistics constraints ease over time.\n \n \n The Group continues to operate its assets in accordance with the volume of sales that are accessible given the ongoing conflict in Ukraine, and has recently operated in line with the historic level of sales to European markets, in addition to serving excess demand derived from reduced deliveries of Russian iron ore into Europe. The Group continues to receive deliveries of key consum...