Mining strikes in South Africa, a ban on iron-ore processing in Goa, India, and a newly announced $158bn wave of infrastructure projects from Beijing, have all helped drive iron ore prices up 30% to around $120 per ton from their September lows. And although Chinese steel demand has decelerated, it hasn't yet peaked. Industry analysts predict that will happen in 2028, at volume levels 40% higher than today. This is good news for Ukrainian iron-ore producer Ferrexpo.
The firm owns the licences for one of the world's largest deposits, containing 20 billion tons of minerals. The company extracts the metal from its Poltava site, and converts it into iron pellets. Forty per cent of the 9.5 million ton per annum output is then shipped to Asia, 7% to the Middle East and 53% to Europe.
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