SsangYong C&E factory in Yeongwol-gun, Gangwon Province, South Korea [Photo provided by SsangYong C&E]
Concerns are growing in the construction and ready-mixed concrete industries that supply of cement may fall short in the peak season in March.
According to multiple industry sources on Tuesday, Korea’s leading cement maker SsangYong C&E Co. has started to control shipments as demand has become higher than the production this month. The company is the latest to join 6 other cement manufacturers that have already limited shipments.
The move comes as demand for cement is high but the supply is not enough to meet that demand.
According to cement industry sources, 7 million tons of cement were shipped in January and February, which is up by more than 15 percent from the same period a year ago. It is also the largest shipment for the two months since 2000.
“Demand rose due to the carry-over volume due to the truckers strike at the end of last year and also early launches of construction projects,” said an unnamed official from the cement industry.
Production, however, is short of demand, as cement makers engage in their regular maintenance to resolve heady-load of the production lines and invest in environmentally-friendly facilities to meet the government’s carbon-neutral goals.
Cement stock is running out faster than expected. Inventory halved to 600,000 tons from the average of 120,000 tons.
By Yang Yeon-ho and Chang Iou-chung
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]