Reuters reported that Ukrainian iron ore producer Ferrexpo Plc demand has strengthened in its core markets as Europe restocks and the global economic outlook improves but added that contract prices had dropped.

Mr Kostyantin Zhevago CEO of Ferrexpo said that "The majority of Ferrexpo's European customers are now taking their full contract volumes despite in many cases not being at 100% capacity utilization themselves.”

However the company, which reverted to selling most of its production to long term contract customers in the Q3, said that contract prices were about 48.3% lower than for the 2008 to 2009 contract year. It has long term contracts in place for about 90% of its output. The company said that market pellet sales to China were suspended at the end of July in favor of increasing contract sales.

(Sourced from Reuters)