Ferrexpo Share Discussion Threads

[mick sturbs] 19/1/2025 14:53

no worries. If you are concernerd about ukrainian customers don't be. 100% of ferrexpo product is exported to europe, asia, middle east and north america

[bellbottom] 19/1/2025 14:24

Mick - apologies - you are of course correct. Natural gas mostly fuels the pelletisers with up to 25% fuelled by sunflower husks. The potential direct impact of the Pokrovsk mine having shut down is nil. The indirect impact I'm not so clear about.
Ukraine steel manufacturering was already much reduced by about 70% in 2022 under war conditions. With the Pokrovsk mine now effectively shut down that figure will be reduced further, plus importing coking coal for steel manufacturers will increase costs for companies like Metinvest.

Apologies again for my ignorance of the details of manufacture and processing of iron ore.

[alphahunter] 19/1/2025 13:31

Thanks for the update.Novinsky is pro-Russian, unlike Akhmetov (Metinvest), member of Party of Regions, and overtly pro-west and pro Ukrainian army. The coal mine has closed but has not fallen (yet) to the orcs - that's my understanding.

[mick sturbs] 19/1/2025 13:20

bellbottom... they dont use coking coal! they produce pellets... the customers who buy pellets from ferrexpo mnake steel and some of them use coking coal in the steel making process... its that simple.

[bellbottom] 19/1/2025 12:51

The following statement taken from Ferrexpo’s Climate Change Report 2023.

“…..Blast furnace (“BF”) pellets are primarily used in blast furnaces, where coke is the primary fuel and reductant in the ironmaking process. We produce BF pellets using the Sinter–Blast Furnace–Basic Oxygen Furnace (“Sinter-BFBOF”) route. At Ferrexpo, our blast furnace pellets are vital to reducing carbon emissions in the steelmaking process. By substituting our pellets for sinter ore, we help eliminate the need for sintering – a coal-based, carbon intensive method used to agglomerate lower-grade iron ore fines into sinter, making it suitable for blast furnaces. This substitution reduces carbon emissions by at least 40% for every tonne of sinter ore replaced with pellets.

Blast furnace steelmaking continues to be a dominant method globally; blast furnaces are expected to increase pellet usage by at least 11% in the medium term to meet decarbonisation goals in various regions. The production and sale of BF pellets account for most of our sales portfolio…….”

And from Ferrexpo’s LOW CARBON PATHWAY proposals.


"WHY ARE PELLETS LOWER IN CARBON?
It is important for stakeholders to understand that Ferrexpo produces iron ore pellets, rather than sinter fines, since the sintering process (required for processing sinter fines) typically requires the use of coal and therefore generates a large amount of carbon emissions. With the lack of requirement for sintering, allied with the fact that Ferrexpo’s pellets are high grade (65% Fe or above), means that Ferrexpo’s iron ore pellets reduce carbon emissions by 40% for every tonne of sinter fines replaced with pellets2. The global average emissions from steelmakers is 1.85 tonnes of CO2 per tonne of steel produced3, and therefore this 40% reduction accounts for a significant potential carbon saving.

LOOKING TO THE FUTURE
The traditional blast furnace process of steelmaking still uses coal however, and a large part of producing low carbon steel relates to cutting coal out of the production process. This is possible today through replacing coal with either natural gas or electricity, with both methods of steelmaking requiring a different type of pellet however – direct reduction (“DR”) pellets. This is a product that is higher grade (67% Fe) and lower impurity than other forms of iron ore. Ferrexpo has already embarked on this journey, producing over 350,000 tonnes of DR pellets in 2022, representing 6% of total pellet production (2021: 4%), with plans to significantly increase the production of these pellets over time to meet customer demand and to help facilitate decarbonisation in the global steel industry."

So, the question is, and I haven't found the answer yet - "How much coking coal does Ferrexpo use per annum?" We know they are aiming to be carbon neutrial by 2050 - that's 25 years hence. By their own statistics they are a long way off from NOT using coking coal.

[mick sturbs] 18/1/2025 19:35

tiger by the tail, Ferrexpo uses natural gas in its pellet production process. Why dont you give them a call on monday to confirm this? Their operations involve the use of rotary kilns and induration machines for pelletizing iron ore, where natural gas serves as the key energy source for heating and drying the pellets. Not sure if maybe you need to do a bit of research yourself or are you purposly attempting to mislead people? Coking coal is traditionally used in steel production, (Ferrexpo's customers) it is not the primary energy source in Ferrexpo's pellet production. Perhaps you owe the board an apology and Ninja as he was right all along.

[bellbottom] 18/1/2025 17:15

Certainly DR pellets don't need coking coal. Usually electric or natural gas or hydrogen power - though I don't think hydrogen safe during times of war!!!

Ferrexpo 2024 total output 6 million tonnes, but!!....... DR pellets output accounted for just 500,000 tonnes or just 8% of total output, up from 6%. So that would suggest that indeed coking coal would be required for the bulk of production. Correct me if I'm wrong.

[tigerbythetail] 18/1/2025 16:58

Oh dearie dearie me. Try a little basic research before buying the stock on an ultra-ultra-high risk company next time!
Do you also realise that the company is under sustained legal attack and its major shareholder is just about the third most despised man in Ukraine. (Medvedchuk is number 2; number 1 is obviously the murderous psycho in the Kremlin).
I'm not saying this is a certain zero in the medium term, but it requires a very specific and not very likely series of events for it to have value.

[hardcore ninja] 18/1/2025 16:43

Correct Tom. I know what I’m talking about and you very clearly do not.

[tigerbythetail] 18/1/2025 16:38

Oh dearie me. Somebody doesn't know the first thing about pellets.

[alphahunter] 18/1/2025 10:19

So Trump is backtracking on his pledge to solve the Ukranian war swiftly, it appears. Has he forgotten to tell the ADVFN thread?Let's hope the orcs won't get their bloodied hands on the Pokrovsk coal mine.

[alphahunter] 17/1/2025 22:34

Hmm, because Ukraine will eventually join the EU and we need a troyan horse?Because EU money will help build-up back Ukraine and we want some of the spoil?But yeah, it's all foriner stuff...

[bobaxe1] 17/1/2025 16:28

Yes nothing can Trump this shares now!//

[upwego] 17/1/2025 14:58

TBTT has been talking it down since 90p and she`s going up nicely
Unlucky TBTT. :)

[sigmund freud] 17/1/2025 14:50

i put some casino money in at 85p the morning i heard trump got elected. if i was smart of course i would have invested earlier.
the whole situation and this stock is a gamble.
however to make sense i like charts, and they make about as much sense as some of the political comments in this chat!
apols for all the lines on this chart. i analyse it the following way:
trump's election blasted it thru the trading range that existed mid 2023-2024.
the only trend line i can draw from the low last summer shows the share price bounced higher off the top of it. and to me it looks like there is a small flag just formed. the flag would indicate another possible up move to 141p which looks like a resistance level to me. so short term further gains, but not for widows and orphans. this is one stock that could go to 0p.


free stock charts from uk.advfn.com

[thags] 17/1/2025 09:49

Gecko have you ever asked yourself why Britain has so many people wanting to come here. Could it be decades of poodle foreign policy doing as they're told by the united states of Israel perhaps. You create refugees by needlessly bombing countries thousands of miles away for political or financial reasons. Until the world stops pandering to thr US the situation isn't changing

[geckotheglorious] 17/1/2025 09:32

Why on earth should we put British troops in peace keeping roles for the benefit of EU.

We need those troops closer to home. eg Britain's beaches to stop the Illegal Immigrants.

[bobaxe1] 16/1/2025 23:29

Talk of peace keeping force ummhttps://news.sky.com/story/uk-will-play-its-full-part-in-peacekeeping-efforts-in-ukraine-says-sir-keir-starmer-13290316 UK will play its 'full part' in peacekeeping efforts in Ukraine, says Sir Keir Starmer

[masergt1] 16/1/2025 19:26

tbtt. We've nothing but negativity off you. Are you invested and if so since when, or are you just trying to talk it down so you can dive in before ceasefire?

[tigerbythetail] 16/1/2025 13:38

RNS - more legal problems - this time fairly low level juridicial harassment.
The more serious issues are still hanging...
Nobody here seems to have noticed or even care about the permanent loss of high-grade coking coal from Pokrovsk. But you will when the next quarterly results come out!
Objectively, this is trading on way too much unfounded hope and far too little rational well-founded fear.

[enewman36] 16/1/2025 11:44

Hhmmm, interesting drop....

[smackeraim] 16/1/2025 10:59

Trump on Monday .. interesting times ahead

[smackeraim] 16/1/2025 10:47

https://www.washingtonpost.com/politics/2025/01/15/ukraine-hawk-removed-house-intelligence-role-reportedly-trump-request/