Kazakhstan’s Steppe Cement sees surge in clinker production in 2025

Kazakhstan's Steppe Cement expects 2025 clinker production to increase 5% to 1.55 million metric tons from 1.47 million mt last year amid a moderate growth in domestic demand and stable market conditions, the company said in a statement on June 26.

"We anticipate a stable 2025, with limited capex ($2.5 million planned) focusing on reliability and emissions compliance. We have started to work on a multiyear strategic investment in Line 6 to increase the production to 2.2 million tons, if market conditions allow," the company said. "The cement market remains competitive and we expect moderate growth supported by domestic demand."

Cement consumption in Kazakhstan increased to 11.9 million mt in 2024 from 11.5 million mt in 2023 due to an increase in demand for housing and infrastructure caused by population growth and government initiatives. The company's cement sales also increased by 5% to 1.71 million metric tons in 2024 from 1.63 million metric tons in 2023. In 2025, the company expects cement production to reach 1.85 million mt.

The Kazakhstan cement market demonstrated 'heightened competition' as overall, cement imports declined to 510,000 mt in 2024 from 700,000 mt in 2023.

Exports declined to 900,000 mt from 1.2 million mt, despite Uzbekistan entering the market and applying pressure to the southern regions.

Uzbekistan's cement production is expected to continue growing due to a capacity that has more than doubled in the last five years, with factories running below 60% capacity.

The pressure from Uzbek supply and the reduction in export volumes are expected to continue affecting the southern Kazakhstan market, which is the biggest cement consumption region in Kazakhstan, and will have implications for the broader Kazakh market, the company said.

The company's cement sales also increased by 5% to 1.71 million mt in 2024 from 1.63 million mt in 2023.

The company's clinker production cost per metric ton was 16% higher than in 2023 due to a 42% rise in electricity costs, and is forecast to reach 1.55 million metric tons in 2025, exceeding the 1.47 million metric tons in 2024, with cement production expected to reach 1.85 million metric tons.

Platts last assessed CEMDEX Turkey at $55/mt FOB on June 19.