Cement Association Visits National Assembly: "Burden of Rising Thermal Coal Prices... Seeking Solutions for Sustainable Development"

Chairman Lee Hyun-jun of the Korea Cement Association (left) and Yoon Kwan-seok, Chairman of the National Assembly Industry, Trade, Energy, Small and Medium Venture Business Committee.
[Photo by Korea Cement Association]

[Asia Economy Reporter Kwak Minjae] The Korea Cement Association announced on the 7th that on the 6th, it visited Yoon Kwan-seok, Chairman of the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee, to explain pressing issues and jointly seek solutions for sustainable development.

During the meeting, the Cement Association explained that the annual recurring cement supply and demand crisis and the rise in international thermal coal prices triggered by the Russia-Ukraine war are the main causes of various crises facing the cement industry. They also discussed solutions through mutual growth among related industries.

The Cement Association explained that research and development (R&D), institutional improvements, and expansion of recycled resources necessary for efforts to promote carbon neutrality and a circular economy in line with government environmental policies are urgent key tasks. They expressed concerns that excessive strengthening of standards for cement products would lead to increased costs for the industry, which could deteriorate the competitiveness of the domestic cement industry and ultimately negatively impact related industries such as ready-mixed concrete and construction.

In particular, Lee Hyun-jun, Chairman of the Korea Cement Association, appealed that the price of thermal coal, the most essential fuel for cement manufacturing, has rapidly increased since the second half of last year and has surged more than sevenfold over the past two years. Coupled with the soaring won-dollar exchange rate, the increased cost burden has already exceeded the limit that cement companies can bear.

Furthermore, he emphasized that the global cement industry is also leading the way in reflecting the rise in manufacturing costs such as thermal coal in cement prices. The domestic cement industry’s price increase of about 25,000 won per ton in two rounds this year is only about half of the price increases seen in the United States, Japan, and Europe.

He also explained the inevitability of the recent cement price increase and stated that regarding the opposition from the ready-mixed concrete and construction industries, they will work closely with the National Assembly, government, and related industries to find mutually agreeable solutions.

Yoon Kwan-seok, Chairman of the Industry, Trade, Energy, Small and Medium Enterprises Committee, expressed concern over the ongoing global resource crisis caused by the Ukraine war and the prolonged COVID-19 pandemic, and listened attentively to the difficulties faced by the cement industry, which imports all of its thermal coal.

He said, “As carbon neutrality emerges as a global agenda, it has become an important issue for the cement industry as well. I have heard that strategies and goals are being set and implemented to achieve carbon neutrality,” and urged, “Please spare no effort and preparation to ensure smooth progress going forward.”

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