Remicon supply and demand war at every site… Construction site closure crisis due to half-cut cement production

Recently, the construction industry in Gangwon-do has entered full peak season, but construction progress is being hampered by a shortage of cement supply. As even 50% of ready-mixed concrete, which is needed immediately, is not being supplied, the sense of ‘shut down’ crisis is growing in various parts of the site.

On the 29th, Gangwon Northern Remicon Business Cooperative sent an official notice to 215 organizations requesting information about delays in the supply of remicon. The situation was repeated where ready mixed concrete companies were unable to deliver products on time due to supply and demand constraints of cement companies, and conflicts arose even with large consuming establishments, and countermeasures were drawn up.

According to the industry, the average daily inventory of cement companies in March is only 600,000 tons, half of the normal (1 million to 1.2 million tons). As a result, ready-mixed concrete companies in the province only receive 50% of their cement orders. If you order cement for 6 BCT (Bulk Cement Trailer) vehicles, only 2 or 3 will be delivered.

There is a lack of cement inventory due to a drop in production and an increase in demand. Cement companies usually do regular maintenance every winter season, but this time, according to government policy, there was not enough time to build up inventory due to the conversion of overlapping eco-friendly facilities. Another reason is that the construction site, which suffered construction delays due to the cargo workers’ union strike at the end of last year, has recently reopened all at once, and that demand has increased enormously.

The problem is that as the temperature rises, the number of construction sites increases, and the precast concrete supply and demand war becomes visible. The new construction site of the Chuncheon National Hospital, ordered by the Armed Forces Medical Command, is struggling to find a company to supply 500 Ruby (㎥) of ready-mixed concrete ahead of the final pour in three days. . Considering the situation of cement supply and demand constraints, three companies decided to supply a certain amount each, but all but one company failed to secure cement, making it difficult to proceed with the work.

The local river disaster recovery construction site in Hoengseong also requires a supplier of 500 Ruby (㎥) of ready-mixed concrete. We are considering a method of receiving half the supply from two companies, but the future work is uncertain due to a lack of supply. In the case of Cheorwon, where the supply of cement has fallen early, another supply is applied to a company that can supply it regardless of which company was assigned to the organization using it.

This situation is expected to worsen over time. This is because the demand for ready-mixed concrete tends to increase until May, when the first half of the ordering establishments are usually underway. From the first half of last year, the supply of ready mixed concrete in the province showed an increasing trend, recording 460,000 lubes in March, 670,000 lubes in April, and 700,000 lubes in May.

An official from the Gangwon Do Remicon Industry Cooperative said, “If the supply delay is long, delays in the construction phase will be inevitable.”