Steppe Cement records strong sales in 1Q19

Steppe Cement reports that in the 1Q19 the cement producer sold 266,393t of cement for KZT4455m (US$11.76m), compared to 197,179t of cement for KZT2313m in the 1Q18, an increase of 35 and 93 per cent, respectively.

Steppe Cement reports that higher transport tariffs and rental expenses have been offset by savings due to better utilisation of the wagon fleet and increased sales in markets close to the factory.

Kazakhstan’s cement market grew by 3.6 per cent in the 1Q19 and Steppe Cement increased its market share to 17.4 per cent in the 1Q19 from 14 per cent in 1Q18.

The average cement price for delivered cement rose to KZT16,723/t (ex VAT) compared to KZT11732/t in 1Q18, a rise of 43 per cent. The ex-factory price of cement in the 1Q19 surged 64 per cent YoY to KZT13,614/t, compared to KZT8304/t in the 1Q18.

The company forecasts that the domestic cement market will see demand rise to 9Mt in 2018 from 8.6Mt in 2018. Exports from Kazakhstan fell in 2018, but there is still substantial trade with Uzbekistan.