Cement Net Report: South Korea's Cement Industry Encountered a Cold Winter, the Lowest in 35 Years

Recently, the cement industry in Korea is facing severe challenges. As the construction industry continues to be depressed, the demand for cement has dropped sharply, resulting in cement production enterprises have reduced production or even stopped production. At present, there are 35 cement production kilns in Korea, of which 10 have stopped operation, and 2 are expected to be added in April. This phenomenon is extremely rare in the history of Korean cement industry. The Assia Cement plant in Jichuan City, North Chungcheong Province,

South Korea, originally had four cement production kilns, but one of them has been shut down for a long time. According to Cui Bingjun, director of the plant, another kiln will be shut down this month, and only two kilns will be left in normal operation. Even though it is the peak season for cement demand, the factory's operating rate is only 70%, which forces them to make a decision to reduce production. Data from the

Korea Cement Association show that from January to February this year, domestic cement sales in Korea were only 4.45 million tons, down 24.8% from the same period last year, a new low in nearly five years. This figure has remained stable since 1991, when domestic cement shipments in Korea first exceeded 40 million tons. However, in 2025, domestic cement shipments are expected to fall below 40 million tons for the first time in 35 years. The continued downturn in the

construction industry is the main reason for the decline in cement demand. As new construction decreases, so does the demand for cement. Cement companies have tried to deal with this dilemma through self-financing measures, but the effect of these measures is limited because the industry structure is closely linked to the construction industry.

Faced with the continuing downturn in domestic demand, some cement enterprises began to focus on overseas markets. A cement company, for example, recently strengthened its overseas operations and offered its employees foreign language tuition to explore export opportunities in South America. While exporting cement to the other side of the world may be marginally profitable, companies still need to keep their factories running and cannot allow inventories to build up.

Although the Korean cement industry is facing many challenges, enterprises are still actively looking for solutions. By expanding overseas markets, optimizing production processes and exploring new business models, the cement industry is expected to find new growth points in the future. However, until the construction industry recovers, the difficulties of the cement industry will continue. This is a difficult period for the Korean cement industry, but it is also an opportunity to re-examine and adjust its own structure.