Cement Industry Demands Temporary Additional Allocation of Greenhouse Gas Emission Permits

Some Export Cement Products Converted for Domestic Use to Stabilize Supply
Plan to Restart 7 Idled Kilns Early through Regular Overhaul and Eco-Friendly Facility Investment

Kiln and cement manufacturing equipment. [Photo by Ssangyong C&E]

[Asia Economy Reporter Kim Jong-hwa] The cement industry has called on the government to temporarily ease environmental regulations, including "a temporary increase in greenhouse gas emission allowance quotas and a temporary suspension of the nitrogen oxide emission charge system," to stabilize domestic cement supply and demand.

The Korea Cement Association stated on the 30th, "The cement industry is making various efforts to ensure stable supply and demand of products, but government support is urgently needed to quickly realize supply stability," adding, "We request active support to resolve confusion at construction sites."

An association official said, "To increase cement production, the greenhouse gas emission allowance quotas must be raised," and added, "The payment period for nitrogen oxide emission charges should also be deferred by about one to two months to alleviate the management shock caused by the surge in international thermal coal prices."

They also emphasized the need to review mid- to long-term policies for improving logistics infrastructure, such as the prompt resumption of processes halted due to safety accidents during current facility renovation work, improvement of the logistics environment to address recurring supply disruptions every year, abolition of the safety freight system (sunset system), establishment of alternative logistics bases, and expansion of cement-dedicated trains during peak seasons.

Recently, housing permit performance increased by 51.3% compared to the previous year, causing cement demand at construction sites nationwide (estimated about 10.36 million tons in Q1) to exceed production scale (estimated about 9.98 million tons in Q1). As of the 27th, cement inventory is only about 720,000 tons, equivalent to roughly three days' supply.

The cement industry plans to convert some export products to domestic use to stabilize domestic supply and demand. Coastal companies such as Sampyo Cement, Ssangyong C&E, and Halla Cement have already reduced their March export volume by 52%. They plan to respond flexibly according to domestic market demand going forward.

Kilns temporarily halted due to regular major maintenance and eco-friendly facility investments will also be restarted early. Starting in April, seven out of fifteen kilns currently under maintenance will be reactivated.

The association stated, "The cement industry will continue to make every effort to minimize supply disruptions so that construction sites can operate smoothly and contribute to the revitalization of the national economy."

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