[Featured Stock] Cement Stocks Soar Amid Construction Recovery and Ukraine Crisis

[Asia Economy Reporter Kwon Jae-hee] As the war between Russia and Ukraine prolongs, concerns over a shortage of bituminous coal, a raw material for cement, are growing, causing cement companies' stock prices to surge. Bituminous coal is an item with a 75% dependence on imports from Russia.

According to the Korea Exchange on the 29th, as of 9:35 AM, Korea Cement is trading at 5,470 KRW, up 21.56% from the previous trading day. Sungshin Cement is trading at 15,900 KRW, up 14.39%. Additionally, Hanil Cement is up 8.13% at 21,950 KRW, and Sampyo Cement is up 10.54% at 5,980 KRW.

With the prolonged war between Russia and Ukraine causing raw material prices to soar, even bituminous coal, a raw material for cement, has come under pressure, raising concerns about a 'cement crisis.' Especially as the construction industry enters its seasonal peak in spring and a recovery in the construction sector is expected this year, cement companies' stock prices are soaring.

According to the Korea Cement Association, as of the 28th, cement inventory stands at 650,000 tons. Excluding 300,000 tons of inventory that has hardened due to long-term storage and cannot be sold, the actual inventory is only 350,000 tons. Considering that the nationwide daily shipment volume during the spring construction peak is usually 200,000 tons, it is reported that there is not even a two-day supply left.

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