Ferrexpo profits hit by falling demand

Iron ore pellet producer Ferrexpo saw profits plunge in the first nine months of the year as both prices and demand fell, while costs went up.

In the nine months to the end of September, the Ukraine-focused firm reported turnover of $1.08bn, down from $1.31bn the year before.

Pre-tax profits came in at $228.8m, a 57% drop from the $533.6m it reported over the same period in 2011.

The firm said benchmark iron fines price had fallen from $177 per tonne to $131 per tonnes, while sales fell from 7.2m tonnes in 2011 to 7.0m tonnes.

It added that costs, which rose from $49.4 per tonne to $59.9, were impacted by a stable exchange rate between Ukrainian hryvnia and US dollar, as well as local inflation including electricity tariff and gas price increases.