Steppe Cement trades well in first quarter

Steppe Cement said on Tuesday that it sold 265,556 tonnes of cement for KZT 4.88bn (£8.2m) in the first quarter, representing increases of 13% and 22% respectively.

The AIM-traded firm said the Kazakh cement market in the first three months of 2021 increased by 12% year-on-year, while its market share rose to 13.2% from 12.6% a year earlier.

It said the average price for delivered cement in the period was KZT 18,384 per tonne excluding VAT, up 8% over the prior year.

The ex-factory price for the current quarter was KZT 14,568 per tonne, up 11% year-on-year, with transport tariffs and rental expenses maintained in line.

Steppe said exports from Kazakhstan decreased 9% from 2020, adding that it was “difficult” to have visibility over output in the coming months.

“The company estimates Kazakhstan's cement market demand will increase due to infrastructure and housing projects initiated by the government,” the board said in its statement.

“We continue to operate the factory at capacity, and we do not anticipate any liquidity problems with sufficient clinker in store and credit lines from the main banks in Kazakhstan.”

At 1056 BST, shares in Steppe Cement were up 3.39% at 39.29p.