Swiss-headquartered company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that in the fourth quarter of 2009 it has increased its share of sales under long-term contracts to approximately 86 percent, with the majority of the balance directed to strategic customer trials in Japan, Western Europe and India.
"Ferrexpo performed strongly in the fourth quarter, with high levels of production complemented by a return to contract-based sales and the associated higher margins and improved demand visibility. The slow but steady recovery in European steel markets and the quality of our customer relationships are highlighted by the fact that we have been able to switch our sales back to our portfolio of long-term contract customers, which has enabled the group to finish a challenging year on a high note," Ferrexpo CEO Kostyantin Zhevago stated.
Accordingly, in Q4, considered the "strongest quarter in 2009", the company registered a 6.5 percent increase quarter on quarter in its iron ore production to 7.66 million metric tons, and a 0.9 percent rise in its concentrate production to 2.8 million metric tons. Ferrexpo's overall pellet output in Q4 amounted to about 2.35 million metric tons - up 3.1 percent quarter on quarter.
In addition, Ferrexpo says in its statement that its sales volumes in 2009 exceeded both 2009 production and 2008 sales, with average achieved DAF/FOB prices in Q4 broadly in line with Vale pellet settlements after adjustments for freight and quality.