Ferrexpo halts Ukraine production as export crisis deepens
2026-08-06 11:29:34 [Print]
Switzerland-based Ferrexpo has suspended iron ore production in Ukraine following a series of Russian attacks that have effectively cut off its Black Sea export routes, leaving the miner reliant on fresh financing to resume operations.
According to a regulatory filing on Tuesday, the suspension affects Ferrexpo's mines and pellet plant near Horishni Plavni in central Ukraine, approximately 280 kilometres southeast of Kyiv. While the company can continue supplying European steelmakers from existing stockpiles, a production restart will depend in part on securing additional working capital.
The shutdown elevates a wartime shipping bottleneck into a direct threat to one of Europe's largest suppliers of high-grade iron ore pellets. Prior to Russia's 2022 invasion of Ukraine, Ferrexpo was the world's third-largest exporter of iron ore pellets. Its premium products enable steelmakers to significantly reduce emissions compared with lower-grade iron ore feedstocks.
Late last month, Russian drones struck a third-party vessel carrying Ferrexpo pellets in Ukrainian Black Sea waters, resulting in the death of one crew member. The vessel was carrying 55,000 tonnes of direct-reduction-grade pellets destined for customers in the Middle East.
Production had already been severely curtailed prior to the latest suspension. In the first half of the year, Ferrexpo produced 1.56 million tonnes of commercial product-a 54% decline year-on-year-with only one of its four pelletising lines remaining operational.
According to a regulatory filing on Tuesday, the suspension affects Ferrexpo's mines and pellet plant near Horishni Plavni in central Ukraine, approximately 280 kilometres southeast of Kyiv. While the company can continue supplying European steelmakers from existing stockpiles, a production restart will depend in part on securing additional working capital.
The shutdown elevates a wartime shipping bottleneck into a direct threat to one of Europe's largest suppliers of high-grade iron ore pellets. Prior to Russia's 2022 invasion of Ukraine, Ferrexpo was the world's third-largest exporter of iron ore pellets. Its premium products enable steelmakers to significantly reduce emissions compared with lower-grade iron ore feedstocks.
Late last month, Russian drones struck a third-party vessel carrying Ferrexpo pellets in Ukrainian Black Sea waters, resulting in the death of one crew member. The vessel was carrying 55,000 tonnes of direct-reduction-grade pellets destined for customers in the Middle East.
Production had already been severely curtailed prior to the latest suspension. In the first half of the year, Ferrexpo produced 1.56 million tonnes of commercial product-a 54% decline year-on-year-with only one of its four pelletising lines remaining operational.
