South Korea's cement industry is mired in a double dilemma of shrinking demand and soaring costs. Affected by the long-term downturn in the construction market, coupled with the volatility of raw material prices caused by the Middle East war, major cement manufacturers are under unprecedented operating pressure, and the industry as a whole is facing severe survival challenges. The contraction trend of the
production side is shocking. Publicly disclosed data show that in 2025, the factory operating rate of major cement enterprises in South Korea collectively fell to a historic low of about 50%. Among them, the operating rate of Sanhe Cement was only 49.7%, down 11.9 percentage points year-on-year; Hanyi Cement and Asia Cement were 59.1% and 58.8% respectively, down 6.8 and 8.3 percentage points respectively from the same period last year. This level is not only much lower than last year's performance, but also significantly lower than average 72.6% operating rate of Korean manufacturing industry, reflecting the serious contradiction between overcapacity and insufficient demand. The direct cause of this situation is the continued depression in the construction industry, forcing companies to cut production sharply to cope with the shrinking market. In 2025, South Korea's domestic cement shipments were only 38.1 million tons, the lowest in 34 years. The decline in performance is fully reflected in the financial statements of enterprises, and Ssangyong C & & E's consolidated operating profit plunged 43.4% year-on-year to 106 billion won, while the profits of Hanyi Cement and Asia Cement also plunged 51.1% and 45% respectively, and the industry's profitability suffered a heavy blow.
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