New cement price rises expected in South Korea

South Korea’s cement industry is likely to increase cement prices by 14 per cent from July, citing the impact of sharply rising electricity prices and currency exchange rate as the main drivers.

Ssangyong C&E Co, one of South Korea’s key cement producers, recently sent a letter to concrete suppliers stating its intention to increase bulk prices by 14.1 per cent to KRW119,600/t (US$90.36/t )from KRW104,800/t, according to local reports.

The country’s other six cement producers are now expected to follow suit despite two rounds of price hikes in February and November 2022 that saw the price of cement increase by a combined 33 per cent from KRW78,800/t in July 2021.

“Although the import cost of Australian Newcastle coal, the main fuel for manufacture of cement, fell 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 per cent of cement manufacturing costs, reached 44 per cent in the first half,” said a Ssangyong C&E spokesperson.