Shares of Steppe Cement slipped on Wednesday as the Kazakhstan-focused cement manufacturer reported a decrease in sales volumes and turnover during the first half of the year.
At 07:22 GMT, shares were down 4.5 pence or 12%, reaching 33.0 pence.
Steppe Cement sold 749,034 tons of cement, equivalent to 16.98 billion tenge ($38.5 million), in comparison to 837,063 tons of cement worth KZT19.58 billion in the first half of 2022.
The average price for delivered cement dropped from KZT23,391 to KZT22,665 per ton.
The company mentioned that inflationary pressures have started to ease in June, with the inflation rate reaching 15% and the Kazakhstan National Bank rate standing at 16.75%. Nevertheless, costs of logistics, utilities, and food items have witnessed significant increases which will affect the overall production costs at the factory.
Steppe explained that the cement market in the country contracted by 5.6% in the first half of the year. After maintaining prices at the expense of volumes in the first quarter, the company decided to regain its market share by adjusting its pricing strategy.
Currently, as of June 30, Steppe Cement holds a market share of 14.1%, and its overall volumes remain consistent.
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