Ferrexpo PLC (LSE:FXPO) saw its interim profits jump as prices for high grade iron ore doubled on greater demand from steelmakers.
Overall demand for iron ore increased as governments provided economic stimulus packages in response to the Coronavirus pandemic, while demand for high grade products, such as iron ore pellets, also offered steelmakers the opportunity to lower carbon emissions, it said.
“Iron ore fines prices have remained strong throughout the majority of the global COVID-19 pandemic, which relates to a direct response by sovereign governments to stimulate economies and counter the financial effects of measures taken to stem the spread of COVID-19,” the company said.
“The group expects the influence of these fiscal policies to ease in the second half of the year, with demand for iron ore declining from the record levels being seen at present.”
Underlying earnings (EBITDA) soared 147% to US$868mln in the six months to end June as revenues rose 74% to US$1.35bn for the iron ore producer.