Steppe Cement sales rise as Kazakh real estate investment grows

Kazakhstan-focussed Steppe Cement updated the market on its first half on Wednesday, reporting sales of 840,661 tonnes of cement for KZT 16.66bn (£20m), compared with 764,752 tonnes of cement for KZT 13.68bn a year earlier.

The AIM-traded firm said that represented an increase of 10% in volume and 22% in turnover over the same period in 2020.

It said the average price for the current period for delivered cement was KZT 19,814 per tonne, up from KZT 17,884 per tonne 12 months prior.

The ex-factory price for the current period was KZT 16,571 per tonne, compared with KZT 14,727 per tonne in the corresponding period of 2020.

“The cement market in Kazakhstan increased by 25% during the first half of 2021, compared with the same period last year,” the board said in its statement.

“This significant increase can be partly justified as the government has allowed partial withdrawals from individual's pension funds to be invested in real estate.”

It said imports represented 5.2% of the local market, remaining stable, while exports from Kazakhstan increased by 12% to 0.96 million tonnes.

“Steppe Cement's local market share was 14.3% in the first half of 2021, and the company exported 8.5% of its sales.”

At 1108 BST, shares in Steppe Cement were up 0.2% at 51.1p.