Q2 Cement Production Up 36%... Ministry of Land, Infrastructure and Transport "Weekly Supply and Demand Monitoring"

Joint Meeting Held with the Ministry of Industry on the 8th

[Asia Economy Reporter Jo Gang-wook] The government has decided to increase cement production by 36% in the second quarter compared to the previous quarter to prevent a material shortage crisis in the construction industry.

On the 8th, the Ministry of Land, Infrastructure and Transport held a joint meeting with the Ministry of Trade, Industry and Energy, the Korea Institute of Building Energy, the Cement Association, the Ready-Mixed Concrete Association, and the Construction Association to discuss this plan.

This meeting was organized to review the supply and demand trends of cement and ready-mixed concrete and to minimize the impact on construction sites.

They also listened to the difficulties faced by the manufacturing industry due to the recent rise in global raw material prices and discussed measures to improve the system, as well as ways to minimize damage to the construction industry and consumers caused by instability in construction material supply and price increases.

After checking the supply and demand trends of construction materials such as raw materials like bituminous coal and aggregates, as well as cement and ready-mixed concrete production, demand, and inventory, the Ministry of Land, Infrastructure and Transport concluded that there is no problem with raw material supply and that the possibility of cement and ready-mixed concrete shortages at sites is low.

However, with the peak construction season starting in April, there is a possibility of temporary surges in material demand causing market instability, so the ministry requested the cement and ready-mixed concrete manufacturing industry to expand production for stable material supply management.

The government and industry agreed to increase cement production by 36% in the second quarter compared to the previous quarter through additional operation of cement production facilities, converting export volumes to domestic sales, and diversifying import countries to manage bituminous coal supply. They also decided to promote measures to facilitate cement logistics, such as expanding railway transportation. Accordingly, cement production will increase from 10.55 million tons in the first quarter to 14.32 million tons in the second quarter.

The government plans to support smooth information sharing among industries regarding production and inventory volumes by material to ensure no disruption in cement and ready-mixed concrete production.

Additionally, by expanding aggregate supply sources and strengthening quality standards, they will respond to ensure sufficient supply of high-quality aggregates, which are raw materials for ready-mixed concrete, and actively support contract adjustments through associations to minimize damage to the construction industry caused by material supply instability.

In particular, they plan to monitor supply and demand trends weekly and review system improvement measures such as contract adjustments in response to price fluctuations in the medium to long term.

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