Steppe Cement sales improve as group increases market share

Steppe sold 266,393 tonnes of cement in the three months ended 31 March, representing an increase of 35% year-on-year. Revenues improved 93% to ₸4.45bn (£8.95m).

The AIM-listed outfit increased its market share in Kazakhstan to 17.4% in the first quarter of 2019, marking a further improvement on the 14% it held in the first quarter of 2018. In parallel, the local cement market expanded by 3.6% during the first quarter.

Steppe also expects demand in Kazakhstan's cement market will increase to 9m tonnes in 2019, just ahead of the 8.6m tonnes recorded in 2018. Exports from Kazakhstan reduced from their 2018 figure but Steppe stated its outlook continued to be "optimistic" across the border in Uzbekistan.

Given the international spread, Steppe also highlighted that higher transport tariffs and rental expenses had been offset by savings due to better utilisation of its wagon fleet and increased sales in markets close to its factory.

As of 1020 BST, Steppe shares had hardened 4.48% to 35p.