Ssangyong C&E to Increase Cement Prices by 15.4% Starting November

Cement manufacturing equipment at Ssangyong C&E Donghae Plant. [Photo by Ssangyong C&E]

[Asia Economy Reporter Kim Jong-hwa] Ssangyong C&E has also joined the cement price hike. On the 5th, Ssangyong C&E announced that it sent an official letter to the ready-mixed concrete industry on the 4th, stating that from November, the cement price will be raised from 90,800 KRW per ton to 104,800 KRW per ton, a 15.4% (14,000 KRW) increase.

This is the second increase this year, following the 15.2% hike from 78,800 KRW to 90,800 KRW per ton in April.

Following Sampyo Cement's 11.7% increase from September, Hanil Cement (15%), Sungshin Cement (13.5%), and Halla Cement (14.5%) also notified price hikes, and now Ssangyong C&E has joined them.

Ssangyong C&E cited the rise in thermal coal prices, high exchange rates, and increased electricity costs as reasons for the cement price hike. According to the UK thermal coal price assessment agency GCI, the price of Newcastle thermal coal averaged 134 USD last year but exceeded 260 USD in January this year and even reached an all-time high of 465 USD in September, more than tripling. The soaring exchange rate is also exacerbating difficulties. As of the 30th of last month, the KRW-USD exchange rate surpassed 1,434 KRW per dollar. Compared to last year's average of 1,140.4 KRW per dollar, this is a 26% increase.

Electricity costs, which account for about 25% of manufacturing costs, are also a burden. The government raised electricity rates twice this year, in April and July, and increased them by about 17% again in October, bringing the cumulative increase this year to nearly 30%, according to industry explanations.

A Ssangyong C&E official said, "The rise in thermal coal prices, sharp exchange rate increases, higher electricity costs, and increased logistics expenses have all become major risk factors for management. We understand that the construction and ready-mixed concrete industries are also facing growing difficulties across their operations, but it has become impossible to bear the cost increases solely through internal efforts, making this price hike unavoidable."

Meanwhile, the ready-mixed concrete industry is opposing the cement companies' price increases. The Korea Ready-Mixed Concrete Industry Cooperative Federation, composed of small and medium-sized ready-mixed concrete companies, declared an indefinite work stoppage starting from the 10th.

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