MINEX Forum

Tag: European steel industry

  • Ferrexpo Restarts Pellet Production at Poltava Plant After Energy Supply Improves

    Ferrexpo Restarts Pellet Production at Poltava Plant After Energy Supply Improves

    Ferrexpo, the London-listed iron ore producer with mining operations in Ukraine, has resumed pellet production at its Poltava Mining and Processing Plant following a temporary suspension earlier in 2026.

    The company confirmed that one pelletizing line has been restarted after improvements in electricity availability and costs from both domestic and imported energy sources. The facility had halted operations in January due to disruptions linked to damage to Ukraine’s energy infrastructure.

    Production and shipments of premium iron ore pellets have already resumed, with deliveries being made to customers across Eastern and Central Europe. Ferrexpo continues to rely on its own fleet of railcars to manage logistics and export operations.

    Acting chairman of the board Lucio Genovese said the restart coincided with improved conditions as winter ended in Ukraine and the power system stabilised.

    “We are pleased that with the arrival of spring in Ukraine, we were able to resume work and once again produce and export our premium iron ore products,” Genovese said, adding that the restart reflects the resilience and adaptability of the company’s workforce.

    Ferrexpo’s operations had previously been disrupted by Russian missile attacks on energy infrastructure in the Poltava region, which forced the company to temporarily halt production and exports in November 2025.

    The company also disclosed an update regarding its Swiss subsidiary, Ferrexpo AG. One of the group’s partner banks, MBaer Merchant Bank AG, recently lost its licence after a decision by the Swiss financial regulator FINMA and is now undergoing liquidation.

    Ferrexpo AG holds approximately $3 million in accounts at the bank, part of the group’s total cash reserves of about $30 million as of the end of February 2026. According to the liquidators, the bank’s assets are sufficient to fully cover customer claims, and Ferrexpo expects to recover the funds, although the timeline remains uncertain.

    The company said the issue has not disrupted its relationships with other financial institutions but confirmed it is exploring alternative banking arrangements to support international transactions.

    Operational disruptions over the past year have weighed on Ferrexpo’s production performance. In 2025, total iron ore output fell 9% year-on-year to 6.14 million tonnes. Pellet production declined sharply by 47% to 3.22 million tonnes, including 3.14 million tonnes of premium pellets and 81,790 tonnes of direct reduction pellets.

    Meanwhile, commercial concentrate production increased more than fourfold year-on-year to 2.92 million tonnes.

  • European Steel Industry Urges EU Action Amidst Deepening Crisis

    European Steel Industry Urges EU Action Amidst Deepening Crisis

    The European steel industry continues to lobby the European Union to address an ongoing crisis, described as the sector’s worst since the 2009 financial crisis. On October 23, the European Parliament held a plenary debate focusing on this critical situation, highlighting challenges including global steel overcapacity, China’s low-cost exports, and EU policy weaknesses.

    Steel associations cited the industry’s struggles, noting that global overcapacity reached 551 million tons last year—four times the EU’s annual steel output. With China producing nearly half the world’s steel, flooding global markets with cheap steel, European producers face declining revenues, job losses, and environmental concerns. MEP Juan Ignacio Zoido Alvarez highlighted China’s rapid growth in steel production, up by 600% over 20 years, with further increases anticipated by 2026.

    Further issues included high energy prices, weaknesses in the Carbon Border Adjustment Mechanism (CBAM), and ineffective trade defense. European Commissioner Helena Dalli noted that Europe, responsible for just 7% of global production, faces declining output and a steel trade deficit. She urged investments in green steel projects to regain global competitiveness and stressed the need for affordable energy and protection from cheap imports.

    Steelmakers and EU leaders discussed an action plan, proposing reduced imports, stronger trade safeguards, and enhanced energy supply stability. President Ursula von der Leyen announced a new Clean Industrial Deal aimed at supporting industries like steel in their green transitions.

    Meanwhile, the Ukrainian steel industry struggles amidst war-related challenges, including plant destruction, export losses, and high energy costs. CBAM poses additional hurdles for Ukraine, which exports 93% of its steel to the EU. Ukrainian officials urge relaxed CBAM terms, citing potential export losses up to $4.6 billion by 2030.

    Industry experts argue that harmonized EU and Ukrainian policies are essential to shield European steel from low-cost imports and sustain critical industry sectors across the region.