South Korea: Cement exports are expected to reach 4.5Mt in 2025, up by 52% year-on-year, according to the Korea Cement Association, as producers seek to offset weak domestic demand and rising raw material costs. Domestic shipments are projected to fall by 16.5% to 36.5Mt, the lowest level in 34 years.
Despite high transport costs and limited profitability, producers including Ssangyong C&E, Halla Cement and SAMPYO Cement are increasing exports to cover fixed costs and maintain kiln operations to retain carbon emission allowances.
A cement industry official said “The domestic economy is as bad as during the global financial crisis, but we cannot stop the plants, so we are sending the cement piling up overseas. On top of that, we need to keep the plant kilns running to maintain a minimum allocation of carbon emission allowances, so the goal is also to secure at least fixed costs.”
Another official said “Ssangyong C&E, Halla Cement and SAMPYO Cement have plants on the coast, so their transportation expenses are lower than those of corporations located inland. For inland companies, transportation costs double when you add ocean freight to land shipping, so it is difficult even to choose exports as a stopgap measure.”
Halla Cement increased exports by 63% year-on-year, expanding sales beyond Latin America into African markets including Cameroon and Guinea. SAMPYO Cement also signed new export contracts with South America in the second quarter of 2025. The Korea Cement Association forecasts 2026 demand will fall further to 36Mt, down by 1.3% from 2025, citing continued stagnation in the domestic construction sector.
