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Steppe Cement releases market update

Published by , Editorial Assistant
World Cement,

In 1Q19, Steppe Cement Ltd has sold 266 393 t of cement for KZT4.46 billion. This is compared to 197 179 t of cement for KZT2.31 billion in 1Q18, representing and increase of 35% and 93% respectively.

The cement market in 1Q19 increased by 3.6% compared to 1Q18. Steppe Cement increased its market share to 17.4% in 1Q19, from 14% in 1Q18.

The average price for 1Q19 for delivered cement was KZT16 723/t (excluding VAT), compared with KZT11 732/t in 1Q18. This is an increase of 43%. Prices have been maintained this winter at the same level as last year.

The ex-factory price for 1Q19 stood at KZT13 614/t, compared to KZT8304/t in 1Q18. This is an increase of 64%. The higher transport tariffs and rental expenses have been compensated with savings, due to improved utilisation of the wagon fleet (less idle wagons, more sublets) and increased sales in markets close to the factory.

The company has estimated that Kazakhstan’s cement demand will increase to 9 million t in 2019, from 8.6 million t in 2018. Exports from Kazakhstan have reduced from 2018, but the outlook continues to be optimistic in Uzbekistan.

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Cement news 2018