In the Rebar Shortage, 'Cheolgeunmari' Is Also a Rare Commodity

High Prices of Scrap Rebar at Demolition Sites Continue to Soar

Rebar bundles are piled up at the demolition site in the Gwangmyeong redevelopment area.

"There is a huge shortage. Scrap metal dealers used to collect it at 300 won per kg, but these days they take it even at 500 won."

As steel prices soar, the construction industry's shortage of rebar is intensifying, and the price of so-called 'cheolgeunmari' (bundled scrap rebar) is also skyrocketing.

In reinforced concrete construction, rebar serves as the structural support of the building. At demolition sites for reconstruction and redevelopment, scrap rebar is collected separately after removing the concrete, leaving only the framework; this is called 'cheolgeunmari' because it is bundled. The price of scrap rebar is determined considering factors such as the thickness and quantity of the rebar and the amount of concrete residue.

On the 21st, a site official met at the Gwangmyeong New Town Redevelopment Zone 2, where demolition work is not yet complete, said, "As the shortage of rebar has become severe recently, the price of scrap rebar has nearly doubled these days."

The situation is no different in the provinces. A scrap metal buyer in Gangseo-gu, Busan, said, "The price of scrap metal itself has risen a lot, so the purchase price of scrap rebar has also soared," adding, "What used to be purchased at around 300 won is now being bought at about 430 to 450 won."

The surge in scrap rebar prices is due to the global spike in steel prices. As the global economy, which was stagnant due to COVID-19, is expected to recover rapidly, steel demand has surged, causing domestic rebar prices to rise accordingly. In the first week of May, the transaction price of rebar reached 930,000 won per ton (wholesale, cash payment basis), the highest price in 13 years since the rebar crisis in May 2008.

Across the country, construction delays are occurring due to rebar delivery delays. The government has identified that, as of June 3, an average construction delay of about 40 days has occurred at 369 construction sites nationwide this year. According to the Korea Construction Association, the proportion of rebar material costs in the average construction cost ratio is about 3%. If the current trend in rebar prices continues, the total construction cost could rise by about 2%.

Park Cheolhan, a research fellow at the Korea Construction Industry Research Institute, said, "The supply and demand issues of steel construction materials are likely to lead to delays in the supply of infrastructure and buildings," adding, "The government should respond step-by-step by expanding steel production and reviewing the construction production system."

This content was produced with the assistance of AI translation services.