Page 12 - Kazakh Outlook 2024

The sector is dominated by a few large companies that mainly produce steel and copper (other metals such as gold, silver and zinc make up a smaller share of the sector). Steel production might face uncertainties as the main steel producer in the country, ArcelorMittal Temirtau (subsidiary of ArcelorMittal), was sold to a state-run fund as of December 2023.
KazMinerals, the country’s main copper producer, is set to see a boost in output this year and likely next year thanks to a “ramp of a second concentrator” at its Aktogay mine.
Uranium
Kazakhstan's state-run uranium company, Kazatomprom, the world’s largest uranium producer, is poised for a substantial increase in uranium production, signalling a significant shift in the uranium market after years of limiting output to stabilise prices. The company has announced its intention to end production cuts by 2025. In 2024, Kazatomprom plans to maintain output at 10% below the contract maximum, targeting 25,000 to 25,500 tonnes. However, in 2025, production is projected to significantly increase without restrictions to 30,500 to 31,500 tonnes.
Manufacturing
The Tengri Partners Kazakhstan Manufacturing Purchasing Managers' Index (PMI) in November showed business conditions had declined for the first time in 14 months.
Anuar Ushbayev, managing partner and chief investment officer at Tengri Partners, said: "The sudden and marked drop in demand signalled by the latest PMI data suggests that the manufacturing sector in Kazakhstan is struggling towards the end of the year. With workloads falling, firms have been looking to retrench, lowering their output, employment, purchasing and inventories in the hope of better days to come in the new year."
Output, new orders, employment, purchasing and inventories experienced reductions or declines in the middle of November. Meanwhile, input costs continued to escalate, prompting companies to raise prices of their products at the quickest rate since February, the PMI report said.
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