Following Ssangyong C&E, Hanil Cement Also... Cement Industry Grapples with Price Increase Rates

It Seems Likely to Be Adjusted at a Similar Level After All
Possibility of Increase Remains Due to Environmental Facility Installation

On the 5th, Hanil and Hanil Hyundai Cement notified ready-mix concrete companies that they would supply Type 1 bulk cement at a price increased by 6.8% (7,100 KRW) to 112,100 KRW per ton. This is a significant reduction compared to the 12.8% increase proposed in July. The price of slag cement is also planned to be supplied at 101,500 KRW per ton, up 6.8% (6,500 KRW) from 95,000 KRW. The timing of the price increase has been delayed by two months. Initially, the price hike was to take effect from the September shipments, but with the revised increase rate, the new prices will be applied starting from shipments next month.

A cement factory located on the outskirts of Seoul. Photo by Dongju Yoon doso7@

On the 25th of last month, Ssangyong C&E, after discussions with the Korea Construction Materials Workers' Council and the Korea Ready-Mix Concrete Industry Cooperative Federation, decided to raise the supply price of Type 1 bulk cement by 6.9% (7,200 KRW) to 112,000 KRW per ton starting from the 16th. The price of slag cement was agreed upon at 102,500 KRW per ton, up 6,700 KRW. This is about half the 14.1% increase proposed by Ssangyong C&E on July 1.

An industry insider stated, "As these two companies adjust their price increase rates, it is highly likely that other companies will also revise their increase rates to similar levels." Another cement industry source explained, "Since B2B (business-to-business) contracts involve large quantities at once, even a difference of a few hundred to a thousand KRW per ton can result in a significant overall difference, making ready-mix concrete companies and others sensitive to price changes," adding, "It does not seem easy to insist on the previously proposed increase rates exceeding 10% alone." Sampyo Cement announced a 13% increase, Halla Cement 12.8%, and Asia Cement 12.1%, respectively.

The burden of investment in environmental facilities to reduce air pollutant emissions remains. An industry representative said, "Installing selective catalytic reduction (SCR) facilities, which are pollution reduction systems, requires enormous costs, making cement price increases inevitable," adding, "Although it is regrettable this time, when further investments are needed to comply with environmental regulations, discussions about price increases may arise again." According to the Cement Association, over the past five years, more than 2 trillion KRW has been invested solely in environmental facilities, and operating costs for SCR installation are expected to exceed approximately 700 billion KRW annually.

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