StockMarketWire.com - Iron ore producer Ferrexpo declared an additional interim dividend, though warned of a slower recovery in steel markets in Europe and Japan than in China.

The company also reported a fall in profit on lower demand.

For the six months ended 30 June, pre-tax profit fell to $294m from $318m on-year and revenues slipped to $776m from US$788m, reflecting lower pellet premiums.

Pellet production and sales volumes were up 5% and 22% respectively, but margins fell to 45% from 47%.

'The global pellet market faced reduced demand in 1H 2020 due to lower steel production in regions other than China, however, this was partly mitigated by significantly lower pellet supply from Brazil,' the company said.

The company declared an interim dividend of 6.6 US cents per share, in addition to the dividend declared in June 2020.

Ferrexpo said that as the market returned to more normal conditions in second half of 2020, it expected to see a recovery in steel demand outside China, which should be constructive for pellet premiums.

But the recovery of the steel markets in Europe and Japan 'will be slower than in China and that the demand of the Chinese steel producers will remain at the level as seen in the first half of 2020,' it added.

At 8:16am: [LON:FXPO] Ferrexpo PLC share price was +10.9p at 192.4p



Story provided by StockMarketWire.com