South Korean cement producers to withdraw price hikes

Major cement producers in South Korea have withdrawn price rises announced earlier in 2013 and will maintain current prices for a year.

Manufacturers such as Tongyang Cement, Hanil Cement and Sungshin have sent official notices to ready-mix concrete companies and construction contractors stating that they would freeze prices for a year, according to reports by the Korea Economic Daily.

Since February, cement producers have been planning to initiate a 9-10 per cent price increase due to a rise in the price of raw material costs.

Earlier this month, seven South Korean cement producers were facing a probe by the country’s Fair Trade Commission for alleged price collusion. The commission had reportedly sent its investigators to the sites of Ssangyong Cement Industrial, Hanil Cement Tongyang Cement, Sungshin Cement, Lafarge Halla, Asia Cement, and Hyundai Cement in order to conduct the probe.