Iron ore pellet maker Ferrexpo said it had partially resumed production at its central Ukraine facilities after Russian missile strikes damaged power supplies earlier this month, but warned that it was drawing on stockpiles to meet customer orders.
The company, which was forced to suspend production on October 11 after Russia started to target Ukraine’s power and water plants, on Tuesday said supply of power to operations remained ” variable and limited”, which has an impact on the cost effectiveness of production.
“As a result, the group is currently focused on drawing down on its stockpiles of finished iron ore products to maintain supplies to its customers, and the ability to utilise such stockpiles has ensured a consistent supply to customers since the events referenced above,” Ferrexpo added in a statement.
“The group can confirm that it has sufficient stockpiles to meet customer demand.”
Reporting by Frank Prenesti for Sharecast.com
