Steppe 3Q volumes increase as domestic demand rises

Steppe 3Q volumes increase as domestic demand rises
Published: 12 October 2011

Steppe Cement reported a 40 per cent YoY increase in 3Q11 revenue of KZT5646m as it sees a steady rise in its domestic market of Kazakhstan. For the 9 months ended 30 September 2011, revenue was KZT11,933m compared to KZT8,741m in the corresponding nine month period of 2010, representing a 37 per cent improvement.

Sales reached 447,022t during the third quarter, which is five per cent higher than 3Q10. Sales for the nine months to September 20011, volumes rose by 11 per cent to 1.05Mt from 0.95Mt in 9M10.

The average price (ex-VAT) for delivered cement was KZT11,385/t for the first nine months of 2011 against KZT9221/t in the corresponding period of 2010. Ex-factory prices stod at KZT9712/t (US$66).

The Kazakhstan cement market saw a 11 per cent YoY increase for the first nine months of this year and Steppe estimates that full-year demand will reach 6.3Mt. Imports into Kazakhstan declined to 15 per cent from 20 per cent in the corresponding nine-month period in 2010.