Cement and Ready-Mix Concrete Supply Normalization on Track... "Export Volume Shifted to Domestic Market"

Minister Won Hee-ryong Checks Cement and Ready-Mix Concrete Supply Status
"Short-Term Supply, Structural Problem Resolution in Mid- to Long-Term"
Cement Association "Supply Possible at Peak Season Level Starting Next Week"

Supply of cement and ready-mixed concrete (Remicon) is expected to gradually recover starting this month. The government has decided to address short-term supply and demand issues and resolve structural problems such as facilities and distribution in the mid to long term. The cement industry plans to convert export volumes to domestic supply to respond to market demand.

Minister of Land, Infrastructure and Transport Won Hee-ryong (left) is inspecting the current status of cement supply instability at the construction site of Seoul Cinematheque in Jung-gu, Seoul, on the 6th. / Photo by Noh Kyung-jo

On the morning of the 6th, Won Hee-ryong, Minister of Land, Infrastructure and Transport, visited the Seoul Cinematheque construction site in Jung-gu, Seoul, to check the current status of cement supply instability. Recently, supply disruptions of Remicon have occurred at various construction sites due to regular maintenance of cement plant production facilities (kilns), eco-friendly facility modifications for carbon neutrality, and logistics issues. According to a recent survey conducted by the Korea Construction Association targeting the top 100 construction companies, 98 out of 154 sites (63.6%) experienced construction suspension or delays due to cement and Remicon supply instability since March.

This was also influenced by a surge in cement demand beyond expectations. After the Cargo Solidarity transport refusal incident at the end of last year, the backlog of construction projects increased, and early resumption of construction became active due to warm weather. According to the results of a cooperation meeting held the previous day by the Ministry of Land, Infrastructure and Transport with related ministries and agencies to stabilize cement and Remicon supply, the cumulative cement production from January to March this year was 10.61 million tons, an increase of 370,000 tons (3.6%) compared to the same period last year (10.24 million tons), but demand during the same period increased even more to 10.66 million tons (an increase of 790,000 tons, 8.0%).

At the Seoul Cinematheque site, concrete pouring was originally scheduled for the 31st of last month, but construction was temporarily halted due to Remicon supply issues and resumed on this day. A site official said at a meeting after the inspection, "Construction in the downtown area inside the Seoul Four Gates faces difficulties starting from the entry of Remicon trucks," adding, "Due to traffic congestion and other reasons, the daily pouring volume is limited to about 150㎥, and companies avoid the site because of reduced turnover, making it difficult to secure sufficient volume." They also mentioned that Remicon must be poured within 90 minutes after production, and the demolition of the Sampyo Remicon plant in Seongsu-dong in June last year has exacerbated the difficulties.

Lee Chang-gi, Executive Vice President of the Korea Cement Association, explained, "We were worried about Remicon supply from the end of last year through spring. We predicted the backlog of construction projects and weather conditions, but the cement mix ratio (cement content per unit) required at the site increased." This is because maintaining quality became important after the collapse accident at Hwajeong I-Park in Seo-gu, Gwangju. He added, "Regular maintenance of cement plant production facilities is conducted annually from January to March and was completed at the end of last month," and "Starting next week, supply at peak season levels will be possible, and we will adjust volumes mainly for domestic demand."

Participants in the meeting also pointed out structural issues related to logistics. Vice President Lee said, "Since this is a traditional domestic industry, it is not easy to drastically increase or decrease cement production, and connection with the site is important. However, many rail transport vehicles that replace land transportation have exceeded their service life," and requested, "Please review the total volume restrictions on Bulk Cement Trailers (BTC) and issues with freight trains."

In response, Minister Won said, "We will hold another meeting with the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance, the Public Procurement Service, and industry officials to discuss measures to stabilize cement and Remicon supply," adding, "There may be issues with cement exports and imports, but we will use all possible methods to overcome the immediate supply shortage, so we ask the industry to maximize production to prevent prolonged instability."

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