Steppe Cement Ltd on Friday said it grew market share, though revenue in the first half was impacted by lower average cement prices.

The Malaysian-incorporated company is the operator of two cement production facilities in Kazakhstan.

In the first six months of 2024, sales of cement fell 4.0% to 719,294 tonnes from 749,034 tonnes the previous year.

From the sales the company generated KZT15.34 billion, approximately £25.0 million, down 9.6% from KZT16.98 billion.

The revenue differences can be explained by increased competition which has driven down the average price for delivered cement by 5.9% to KZT21,331 per tonne from KZT22,665.

‘The cost of transport and some utilities, particularly electricity, have significantly increased year-on-year. However, sales focus in local markets, better production levels and higher productivity have partially compensated for these increased costs,’ Steppe said.

During the first half, the cement market in Kazakhstan shrank 1.6% from the year before, with much of the decline concentrated in the first quarter. Since May, the market has seen a recovery.

Overall demand in the Kazakh cement market is expected to be similar this year, to 11 million tonnes in 2023.

Steppe’s increased its market share in the half to 17% from 14% year-on-year.

Looking ahead, the company anticipates further growth and increased sales in 2024 ahead of last year.

Steppe Cement shares down 6.1% to 14.56 pence each in London on Friday afternoon.

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