"Withdraw Cement Price Increase"... Angry Ready-Mix Concrete Industry "Utilizing All Means" (Comprehensive)

Over 700 Small and Medium Ready-Mix Concrete Companies Attend Protest Rally
Raise Issues of Cement Industry Monopoly and Supply Control
"Concerns Over Negative Impact on Construction Market and Price Stability Policies"
Chairman Kim Ki-moon: "Efforts to Legislate Delivery Price Linkage System"

On the 25th, the 'Cement Price Increase Protest Rally' was held at the Korea Federation of Small and Medium Business in Yeouido, Seoul.

# Last January, a sales representative from cement company A visited concrete company B in Chungbuk and notified them that "cement prices will increase starting February." He pressured them by saying, "Cement stock is insufficient," warning that if they do not agree to the price hike, supply may not be properly maintained.

# The representative of C Concrete in Jeonnam stated, "The 19% cement price increase implemented in February this year was finally reflected in the concrete cost from May after many difficulties," adding, "Even then, only a portion was reflected." He lamented, "If cement prices rise another 10%, small businesses in provincial small cities will find it hard to survive."

Small and medium-sized concrete companies nationwide have expressed dissatisfaction with the cement industry's successive price hikes and have begun collective action. If the cement price increase materializes next month, they are prepared to even consider a shutdown (business suspension).

The Korea Ready-Mixed Concrete Industrial Cooperative Federation, a group representing small and medium concrete companies, held a protest rally on the morning of the 25th at the Korea Federation of SMEs in Yeouido, Seoul, demanding the withdrawal of the cement price increase.

About 700 people from the concrete industry gathered at the event to criticize the cement industry's price hike notifications and pointed out issues of market monopoly and unfair trade practices.

The emergency response committee formed by the Concrete Cooperative Federation issued a resolution demanding △ withdrawal of the cement price increase △ cessation of threats and coercion using cement supply as leverage △ disclosure of cement manufacturing costs and factors behind the price hikes. They also urged the government to conduct continuous monitoring of the cement market's monopoly and investigate cases of unfair trade.

The cement industry reportedly notified concrete companies that after a 5.1% increase in July last year and a 17-19% increase in February this year, cement prices will be further raised by 12-15% starting next month. This amounts to a total increase of about 33-35% this year alone. Since cement is a raw material for concrete, the industry is inevitably sensitive to cement price hikes.

On this day, the concrete industry also appealed that they are facing the worst crisis not only due to cement price increases but also because of the Cargo Solidarity Union strike, concrete transporters' strike, and soaring prices of raw materials such as sand and gravel, as well as fuel and transportation costs.

[Image source=Yonhap News]

An industry insider said, "We worry that if prices are not raised, cement supply might be stopped or reduced." The cement industry is currently dominated by five companies controlling 94% of the market after Hanil Cement acquired Hyundai Cement in 2017 and Asia Cement acquired Halla Cement in 2018. Because the cement industry is close to a monopoly market, if they control supply volume, small and medium concrete companies have no choice but to be dragged along.

Small and medium concrete companies also find it difficult to demand price increases from construction companies. This is because rising concrete prices can affect housing construction costs and sale prices. The concrete industry expects that additional cement price hikes will negatively impact the construction market in the second half of the year and the government's price stabilization policies.

Jowong Bae, chairman of the Concrete Cooperative Federation, said, "We have suffered from cement price increases and supply shortages, and now we are frustrated and bewildered by the notification of another increase starting in September," emphasizing, "We will fight to the end to assert our position."

The industry is prepared to carry out a shutdown if the additional cement price increase is realized next month. Youngseok Kim, co-chairman of the emergency committee, said, "We will demand withdrawal until the end of August and wait," adding, "We will comment on the situation later." However, he hinted that a shutdown is possible by saying, "We will use all available methods. There will be various means and ways."

They delivered the resolution to Kim Kiwon, president of the Korea Federation of SMEs, requesting joint response to the difficulties faced by small and medium enterprises.

President Kim said, "We will provide full support, including government mediation requests, along with preparing win-win measures between large cement companies and small and medium concrete industries." He added, "We will also strive to legislate a delivery price linkage system to fundamentally resolve the industrial ecosystem issues among cement, concrete, and construction companies."

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