Ferrexpo announced the resumption of DR pellet production, which was halted in the second quarter of 2024. Nick Bias, Group Head of Investor Relations and Corporate Communications, stated that they expect demand for these products to increase due to regulatory requirements in Europe and the availability of cheap gas in the Middle East and North Africa. Bias emphasized that carbon emissions and the origin of products will stand out as critical factors in green steel production.
Ferrexpo restructured four production lines in the first half of 2024 to be flexible according to customer demands. However, the company faced pressure on margins due to rising electricity prices and falling iron ore prices. Despite this, the company reportedly increased its pellet production by 76% to 3.297 million tons in the same period.
Ferrexpo's actions reinforce the company's ambition to become a global leader in low carbon steel production. With its large reserves and flexible production capacity, the company proves its ability to respond quickly to changing needs in the industry.
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