Ukraine's Ferrexpo Q2 iron ore production up 63% QoQ

On July 15, 2026, Ukrainian pellet producer Ferrexpo released its production report and trading update for Q2 2026. The report shows:

Production: Total iron ore production in Q2 2026 was 963,000 mt, up 63% QoQ but down 24% YoY. Of this, pellet production was 860,000 mt, up 64% QoQ and 5% YoY; iron ore concentrates (Fe 67%) production was 103,000 mt, up 52% QoQ but down 77% YoY. Within pellet products, direct reduction (DR) grade pellet (Fe 67%) production was 163,000 mt; high-grade pellet (Fe 65%) production was 697,000 mt, up 33% QoQ but down 15% YoY. The 63% QoQ increase in total iron ore production in Q2 was mainly because production had largely been suspended in Q1 due to attacks on Ukraine's energy infrastructure, and stabilized production resumed in Q2. However, affected by the Russia-Ukraine conflict, logistics disruptions, and other factors, the group currently still operates only one pellet production line.

The company stated that in Q2, it improved its sales mix by exporting DR-grade pellets, and continued to manage client distribution and product mix under constrained conditions. Meanwhile, the group still faces operational pressures from the regional conflict, logistics restrictions, labor shortages, and the suspension of VAT refunds, and continues to protect working capital through cost-cutting, procurement controls, and the suspension of non-essential capital expenditures.

Future plans: Ferrexpo stated that the board sees equity financing as the most feasible option at present, with a minimum fundraising target of $100 million, to support working capital, near-term operational needs, production ramp-up, and previously deferred stripping, mining, and capital expenditures. Based on current productivity, energy price forecasts, and the optimized sales mix, the group expects that its available net cash can support operations under current constrained conditions until early Q4 2026.