Cement Price Increase Starting Today... Ready-Mix Concrete Industry Discusses 'Strike'

Ready-mix concrete trucks are moving at a ready-mix concrete factory in Seoul. Major cement companies, including Sampyo Cement, raised the price of cement by about 15% per ton starting from the 1st.
[Photo by Yonhap News]

[Asia Economy Reporter Kim Jong-hwa] The cement industry has raised cement prices by about 15% starting today, prompting backlash from the ready-mixed concrete (Remicon) industry.

According to the cement and Remicon industries on the 1st, companies such as Sampyo Cement (11.7%), Hanil Cement (15%), Halla Cement (14.5%), and Sungshin Cement (13.5%) will increase cement prices as scheduled starting with shipments this month.

The cement industry raised cement prices from 75,000 KRW per ton to 78,800 KRW per ton (a 5.1% increase) in July last year, and also increased prices by about 15% earlier this year. With the additional increase this month, cement prices have surpassed 100,000 KRW per ton.

The cement industry states that the price hike is inevitable due to worsening business conditions caused by the sharp rise in the price of bituminous coal, a key raw material, as well as increases in electricity costs, logistics expenses, environmental charges, and labor costs.

A cement industry official said, "This year alone, freight rates have risen 24%, along with increases in electricity bills, interest rates, and exchange rates, creating overlapping adverse factors that make it difficult to absorb losses internally," adding, "There is no other way to overcome the domestic and international crisis situations except to secure appropriate product prices."

However, the Remicon industry finds it difficult to accept another price increase just seven months after the last one in February, citing reasons such as the rise in bituminous coal prices.

The Emergency Countermeasure Committee of Small and Medium Remicon Companies (Remicon ECC) held a protest rally on the 25th of last month, demanding the withdrawal of the price increase or engagement in dialogue by the 31st. They also stated they would consider a factory 'shutdown' if their demands were not met. However, rather than immediately resorting to collective action, they intend to monitor the situation a bit longer and discuss response measures.

As cement companies push ahead with the price hike, the Remicon ECC plans to hold an emergency meeting on the 2nd to discuss the possibility of a strike. A Remicon industry official said, "Remicon companies are suffering caught between cement companies and construction firms," adding, "We will discuss whether to take collective action and future plans." This is seen as a preparatory move to protest the cement price increase and to seek higher Remicon prices from construction companies in the future.

The government has also stepped in to mediate. The Ministry of Land, Infrastructure and Transport, the Ministry of Trade, Industry and Energy, and the Ministry of Economy and Finance are reportedly meeting with stakeholders from the cement and Remicon industries to hear their positions and discuss countermeasures.

If the Remicon industry proceeds with a strike, damage to construction sites will be inevitable, so construction companies are also remaining vigilant.

A construction industry official said, "If Remicon suppliers stop supplying, damage to construction sites will be unavoidable, so we are closely monitoring the situation," adding, "It is unfortunate that various adverse factors are converging amid a sluggish housing market."

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