en.Wedoany.com Reported - Kazakhstan-based cement producer Steppe Cement Ltd (LSE: STCM) released its first-half 2026 results on July 7, 2026. The data shows that the company sold 978,950 tonnes of cement in the first half, up 15% year-on-year (compared to 850,424 tonnes in the same period of 2025), achieving operating revenue of KZT 29.588 billion (approximately $61 million), an increase of 43% (compared to KZT 20.717 billion, or approximately $40 million, in the same period of 2025).
Steppe Cement Ltd is a cement producer listed on the Alternative Investment Market (AIM) of the London Stock Exchange, headquartered in Malaysia, with its core assets located in Aktau Village, approximately 40 kilometers north of Karaganda, Kazakhstan. The company operates two dry-process cement kiln lines and is one of the key suppliers in the Kazakhstan cement market.
The revenue growth was primarily driven by an increase in average selling prices and the appreciation of the Kazakhstani tenge against the US dollar. In the first half of 2026, the company's average delivered cement price (excluding VAT) was KZT 30,224 per tonne (approximately $62.1), significantly higher than KZT 24,361 per tonne (approximately $47.6) in the same period of 2025. The ex-factory price rose from KZT 21,126 per tonne (approximately $41.3) in the first half of 2025 to KZT 27,747 per tonne (approximately $57.1). The appreciation of the tenge against the US dollar by approximately 7% contributed significantly to the revenue growth measured in US dollars.
Against the backdrop of a flat total domestic cement market volume in Kazakhstan and stable imports and exports, Steppe Cement's market share increased by 2 percentage points to 15%. The company expects full-year 2026 sales volume to be approximately 1.95 million tonnes, lower than the 2025 level, mainly due to low clinker inventories at the beginning of the year.
Regarding capacity expansion, the company's project to increase annual production capacity to 2.5 million tonnes is 90% contracted. Preliminary demolition and foundation work are nearing completion, with multiple areas entering the structural construction phase and over 150 workers on site. The project is currently funded by the company's own cash flow and is expected to commence production on schedule in the summer of 2027. The company stated that most contracts are denominated in US dollars and plans to hedge against exchange rate risks.
On the macroeconomic front, Kazakhstan's inflation rate fell to 10.3% in the first half of 2026 (compared to 11.3% in the same period of 2025), with the central bank's benchmark interest rate at 17%. Transportation and electricity costs continue to rise, and the company is focusing on markets near its plant to control logistics costs. This revenue growth reflects Steppe Cement's continuously strengthening competitive position in the Kazakhstan cement market, and the progress of its capacity expansion project as planned lays the foundation for its future growth.
