Cement Companies in South Korea to Increase Prices from July

Major South Korean cement manufacturers, including Ssangyong C&E and Sungshin Cement, announce price hikes starting July due to rising costs and government policies.

Cement Companies in South Korea to Increase Prices from July
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Ssangyong C&E and Sungshin Cement, two of South Korea's leading cement manufacturers, have announced plans to increase cement prices starting July. This decision is attributed to ongoing operational challenges and rising costs.

Ssangyong C&E reported operational losses in the first quarter of the year, citing stabilized coal prices but offset by rising exchange rates. Additionally, the company faces increased costs due to a 44% cumulative increase in electricity rates, which account for about 20% of the manufacturing cost.

The companies are also adjusting to the government's carbon-neutral policy, which necessitates significant investment in production facilities to reduce emissions of harmful substances such as nitrogen oxides. The introduction of higher-priced alternative fuels to reduce coal consumption is adding to the financial burden.

Ssangyong C&E plans to raise the price of Type 1 bulk cement from 104,800 won per ton to 119,600 won, a 14.1% increase. Sungshin Cement will increase its prices by 14.3%, from 105,000 won to 120,000 won per ton. The price adjustments are also expected to affect the ready-mix concrete (remicon) industry, with industry insiders expressing concerns about the impact on smaller companies caught between large cement and construction firms.

For more information, visit the original source at Chungnam Ilbo.