S. Korean cement industry poised to raise prices by 14% in July
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According to sources on Wednesday, Ssangyong C&E Co., the largest cement manufacturer in the country, recently sent a letter to concrete suppliers stating its intention to raise the price of bulk cement from 104,800 won ($80) per ton to 119,600 won, representing a 14.1 percent increase.
The remaining six cement manufacturers will likely soon join the price hike by the industry leader. Cement companies had previously implemented price increases twice in February and November of last year. Consequently, the average selling price of cement rose from 78,800 won per ton in July 2021 to 92,400 won in February last year and to 105,000 won in the second half of the year.
“Although the import cost of Australian Newcastle coal, the main fuel for manufacture of cement fell decreased from $344.7 per ton between January and August last year to an average of $296.1 from October last year to April this year, the high exchange rate partially offset the price decrease. Additionally, the cumulative increase in electricity rates, which account for 20 percent of cement manufacturing costs, reached 44 percent in the first half,” said a Ssangyong C&E spokesperson.
The ready-mix concrete and construction companies are opposing the cement price hike plan. With the real estate market experiencing a slowdown, the rising cost of raw materials and labor has already increased construction expenses.
According to the Korea Institute of Civil Engineering and Building Technology (KICT), the construction cost index in April was 151.26, up 18 percent from 128.65 two years ago.
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