Ferrexpo hit by falling prices

Ferrexpo, the Ukraine-focused iron ore pellet producer, managed to maintain production levels in the first half but is still struggling with tough price conditions.

Production at the group's Poltava mine for the six months to the end of June was 4.7m tonnes of pellets against 4.8m in the same period of last year.

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The interim dividend has been maintained at 3.3 cents per share.

Ferrexpo's Chairman, Michael Adams said: "...the iron ore market has been volatile with market prices for iron ore down 20%.

"Ferrexpo, however, has continued to enjoy solid demand for its pellets with the average pellet price for the period down by only 12%. Lower pricing combined with higher raw material costs has reduced profits from the record level of 2011."

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