StockMarketWire.com - Iron ore group Ferrexpo said pellet output in the third quarter rose 3.5% on-quarter amid increased margins as a 16% rise in prices offset an increase in production costs.

Pellet production reached 2.6m tonnes as production costs rose to US$48 per tonne from US$43 per tonne, primarily driven by a strong local currency and domestic inflation, the company said.

Sales volumes in 2019 grew to about 10.3m tonnes from 10.2m last year, while pellet production from own ore was flat at 10.5m tonnes on-year.

Ferrexpo also said it had completed a final line refurbishment of its 'pelletising line number 2', marking an end to the refurbished programme that had started in 2014.

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