Steppe Cement's quarter sales volumes slip 2%

Kazakhstan-based producer Steppe Cement reported a two per cent drop in sales volumes for the first three months of the year.

In a recent trading statement, the company said it sold 166,121t of cement in 1Q13 compared to 170,080t in the 1Q12. However, revenue rose 13 per cent YoY to KZT2272m (EUR11.6m).

The company said it chose to maintain high cement prices during the quarter due to production constraints in the last quarter as a result of an exceptionally harsh winter. “We expect to recover the volumes during the coming two quarters, having built up a larger inventory than last year.”

The average price for delivered cement was KZT13,677/t compared with KZT11,483/t in the corresponding quarter of 2012, an increase of 19 per cent. The ex-factory price for the current quarter stood at KZT10,850/t US$72/t an increase of 18 per cent over the same period in the previous year.

Cement consumption in Kazakhstan during 1Q13 rose by 17 per cent YoY. However, the company reported a drop in market share from 18 per cent in 1Q12 to 15 per cent in 1Q13. Steppe Cement estimates Kazakhstan's cement demand to be around 7.7Mt for 2013, representing an increase of 10 per cent from 2012. Its Line 5 project remains on schedule for October 2013 completion.