South Korea’s cement industry is accelerating exports as it grapples with soaring raw material costs and a sharp downturn in domestic construction. While exporting offers only limited profitability due to high transport costs, many producers see it as the only way to keep plants running and cover fixed expenses amid a steep collapse in local demand.
The Korea Cement Association, representing major firms including SAMPYO Cement, Ssangyong C&E, Hanil Cement, Asia Cement, Halla Cement Corp, and Sungshin Cement, forecasts exports will reach 4.5Mt this year—an increase of 52 per cent from 2023. The surge comes as domestic shipments are expected to fall 16.5 per cent to 36.5Mt, the lowest level in 34 years.
At Ssangyong C&E, the industry’s largest exporter, domestic sales continue to slide, dropping from KRW1.3887trn (US$945m) in 2023 to KRW1.2884trn in 2024, with KRW804.2bn recorded through the third quarter. Yet its export revenues have grown steadily, rising from KRW100.2bn in 2023 to KRW106bn through the third quarter of this year.
Halla Cement is also shifting strategies, expanding beyond its traditional Latin American markets into Africa, boosting exports by 63 per cent. SAMPYO Cement has taken similar steps, securing new contracts in South America to offset weak domestic demand.
