Ferrexpo is on track to meet full-year targets

Ferrexpo, which produces iron ore pellets used for making steel, has said it is "on track" to meet its targets for the year.

During October, production was in line with expectations at 774 thousand tonnes of pellets, compared to 781 thousand tonnes of pellets in September.

Between July and the end of October, the firm sold 3.3m tonnes at an average price equal to that made during the same period last year.

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The group is expected to sell about 25% of its output on spot, for the full year, with new long term contracts commencing in 2012.

Michael Abrahams, Ferrexpo chairman, said: "Ferrexpo continues to benefit from its established reputation as a quality long term pellet supplier.

"Should there be further deterioration in market conditions, the group remains well positioned in the global market to maintain full production due to its low cost position on the supply curve and established infrastructure to seaborne markets, supporting the local economy and its reputation as reliable supplier to the global steel industry."

The share price fell 3.35% to 311.2p by 16:19.

NR