Kazakhstani Steppe Cement company has formed enough clinker reserves and $6 million in capital reserves to run at its full capacity during the COVID-19 pandemic. For the first quarter of 2020, demand for cement in Kazakhstan increased by 15 %.
Since March 16, Kazakhstan has had a state of emergency related to the pandemic. The three largest cities (Nur-Sultan, Almaty and Shymkent) have been shut down. The quarantine measures have been eased in Nur-Sultan and Almaty since April 20 and the construction industry has resumed activity.
Steppe Cement resumed operations of both of its plants in the Aktau village of the Karaganda region at full capacity. Steppe’s Central Asia Cement is back at 1.1 million tpa, and Karcement runs at its capacity of 0.8 million tpa. The company has active credit lines at several major banks in Kazakhstan. All debt obligations are currently deferred.
Steppe Cement sold 235,896 tons of cement in Q1 2020 ($ 9.2 million worth), indicating a YoY decrease of about 10 %.
Cement consumption in Kazakhstan in Q1 2020 increased by 15 % YoY, up to 1.8 million tons. The cement demand in the coming months is hardly a foreseeable indicator as per Steppe Cement’s representatives.
