"Cement Prices to Rise Again"... Ready-Mix Concrete Industry Protests, Rally Held Today

Cement Industry "Steam Coal Prices and Logistics Costs Soar... Reaching Limits"
Ready-Mix Concrete Companies Collective Action... "Cannot Understand Price Increase"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] As major cement companies continue to raise prices, the ready-mixed concrete (Remicon) industry is pushing back. Small and medium-sized Remicon companies plan to hold a protest rally on the morning of the 25th to demand the withdrawal of the cement price hike.

According to the cement industry, Hanla Cement, a subsidiary of Asia Cement, sent a notice to Remicon companies stating that from the 5th of next month, the supply price per ton of cement will be raised from the current 92,600 won to 106,000 won, a 14.5% increase.

Hanla Cement is the fourth major cement company to push for a price increase next month. Previously, Sampyo Cement, Hanil Cement & Hanil Hyundai Cement, and Sungshin Cement had announced plans to raise prices.

Cement companies argue that the price hike is inevitable due to the sharp rise in the price of thermal coal (high-efficiency coal) and the increase in the won-dollar exchange rate. Thermal coal accounts for about 40% of the cement manufacturing cost.

A cement industry official emphasized, "This is not a situation unique to Korea, as overseas cement industries have also raised cement prices by an average of about 35% compared to the previous year due to cost pressure from the surge in international thermal coal prices."

He added, "This year alone, freight costs have increased by 24%, logistics costs have risen by 120 billion won over three years, electricity rates have increased by 5%, and interest rate hikes are putting pressure on soaring costs, reaching the limit of internal absorption."

Small and medium-sized Remicon companies are strongly opposing and preparing for collective action. About 900 members of the Korea Remicon Industrial Cooperative Federation will hold a protest rally against the cement price hike in front of the Korea Federation of SMEs in Yeouido, Seoul, on the 25th.

If cement prices are raised this time, it will be the third increase in just over a year, and they have even expressed their intention to initiate a "shutdown" if the cement price is raised next month. Since cement is a raw material for Remicon, the industry is inevitably sensitive to cement price hikes.

A Remicon industry official criticized, "Considering the recent decline in the price of Russian thermal coal, the cement companies' price increase is an incomprehensible act."

Chairman Bae Jo-ung of the federation lamented, "Not only the price of cement, the raw material for Remicon, but also the prices of auxiliary materials have risen simultaneously, so the production cost of Remicon is expected to increase by more than 30% in real terms."

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