Steppe Cement 1Q20 cement sales fall by 11%

In the 1Q20 Steppe Cement Ltd sold 235,896t of cement for KZT4003m (US$9.4m) compared to 266,393t in the 1Q19, a decline of 11 per cent.

Kazakhstan's cement market increased in 1Q20 by 15 per cent over the corresponding period of the previous year. The company maintained pricing over volumes in the 1Q20 but saw its market share decrease to 13.3 per cent from 17.4 per cent in the 1Q19.

The average price for delivered cement in the 1Q20 was KZT16,970/t, compared with KZT16,723/t in the 1Q19, a fall of three per cent. Exports from Kazakhstan rose by 34 per cent YoY.

The company estimates that Kazakhstan's cement demand will decrease due to the uncertainty of the oil market and the effects of COVID-19. The factory continues to operate at capacity and no liquidity issues are foreseen with US$6m in cash reserves, sufficient clinker in store and credit lines from the main banks in Kazakhstan, and postponement of principal debt payments where possible.