Is Chinese Cement the Right Choice for Your Dream Flat? Separating Fact from Fiction in the Import Debate
Government Considers Importing Chinese Cement Amid Domestic Price Hike
Last month, the Ministry of Lands, Infrastructure and Transport met with relevant public organizations to discuss revenue. The ministry claims that construction costs have increased due to the rise in cement prices.
The government is considering importing Chinese cement as the domestic cement and construction industries clash over prices. The Ministry of Land, Infrastructure and Transport announced that it would review imports to put pressure on the cement industry to lower prices.
Domestic Cement Industry Faces Challenges
The domestic cement industry has raised prices over the past three years, from 78,800 won per tonne in 2021 to 112,000 won in November last year. The industry attributes the price hike to the increased cost of bituminous coal and the installation of environmental facilities.
However, the Ministry of Land, Infrastructure and Transport argues that the price of bituminous coal has fallen, and the cement industry should lower its prices accordingly. The cement industry counters that electricity rates continue to rise, making it difficult to reduce prices.
Importing Chinese Cement: A Viable Solution?
The expected import price of Chinese cement is around 95,400 won per ton. However, the cement industry opposes the import of Chinese cement, citing concerns that it could destroy the domestic industry. An official from the cement industry argued that if the domestic industry collapses, imported products will end up being sold at higher prices.
Public Sentiment and Environmental Concerns
The introduction of Chinese cement raises concerns about public sentiment and environmental impact. The Chinese cement industry uses waste as fuel during the manufacturing process, which has led some environmental groups to label it as ‘junk cement’. The cement industry notes that the price of cement traded on-site is not much different from the price of Chinese imports.
The cement industry is also facing a decline in shipments, with cement shipments in the first half of this year falling by around 12% to 22.84 million tonnes. Inventory increased by around 16% due to the reduction in shipments.
Representative Park Yong-bwlch stated that the decline in the housing construction market is the result of multiple factors and cannot be solved by importing cheap Chinese cement alone. He added that it appears to be an attempt to increase dependence on foreign countries for important building materials and ultimately destroy domestic cement companies.