Users reject Poltava pellets due to increased prices

Users reject Poltava pellets due to increased prices

Customers in Germany, Poland and Romania rejected Poltava Ore-Dressing Combine’s price hikes, forcing the Ukrainian-based iron pellet producer to send the unwanted stocks back to its storage facilities. The company raised its pellet prices from $85 to $94 per ton in February. A company stockholder cited rising electricity, natural gas and material costs as the reason for the price hike. The rejected orders mean that an additional 180-190 thousand tons of pellets will be added to Poltava’s stocks in April, bringing the company’s inventory close to 250’000 tons. The company is therefore expected to suspend April production, meaning there will be no gains or additional tax deductions.