Cement daily average inventory 1.2 million → 600,000 tons
The supply of ready-mixed concrete at construction sites in the province is cut in half
Intensifying supply and demand conditions expected during peak construction season
Recently, the construction industry in Gangwon-do has entered a full-fledged peak season, but the construction progress is being disrupted due to the lack of cement supply. As even 50% of ready-mixed concrete, which is needed right away, is not supplied, the sense of crisis of ‘shutdown’ is growing in various parts of the site.
On the 29th, Gangwon Northern Remicon Business Cooperative sent an official notice to 215 demand organizations for information on delayed remicon supply. The situation in which ready-mixed concrete companies are unable to deliver products on time due to cement companies’ supply and demand restrictions has repeatedly occurred, and conflicts with consuming organizations have arisen.
According to the industry, the average daily inventory of cement companies in March is only 600,000 tons, half of the usual (1 million to 1.2 million tons). As a result, ready-mixed concrete companies in the province are only receiving 50% of their cement orders. If you order cement for 6 BCT (Bulk Cement Trailer) vehicles, only 2 or 3 will be delivered.
The lack of cement inventory is due to a decrease in production and an increase in demand. Cement companies usually carry out regular maintenance every winter season, but this time, according to government policy, there was not enough time to accumulate inventory due to overlapping eco-friendly facility conversion. Another reason is that the construction site, which suffered from construction delays due to the cargo union strike at the end of last year, recently reopened all at once, resulting in a surge in demand.
The problem is that as the temperature rises, the number of construction sites increases, and the ready-mixed concrete supply and demand war is becoming visible. The new construction site of the National Chuncheon Hospital, which was ordered by the Armed Forces Medical Command, is struggling to find a company to supply 500 Ruby (㎥) of ready-mixed concrete ahead of the pouring work that is coming up in three days. Considering the situation of cement supply and demand restrictions, three companies decided to divide the supply by a certain amount, but all but one company failed to secure cement, making it difficult to proceed with the work.
The local river disaster recovery construction site in Hoengseong is also asking for a supplier of 500 Ruby (㎥) of ready-mixed concrete. We are considering a method of receiving half of the supply from two companies, but the future work is uncertain due to a lack of supply. In the case of Cheorwon, where the supply of cement has fallen early, a measure is being applied to supply substitutes from a company that can supply it regardless of the company assigned to the consuming organization.
This situation is expected to worsen over time. This is because demand for ready-mixed concrete tends to increase until May, when the execution of the first half of the year by ordering organizations is usually in progress. As of the first half of last year, the supply of ready-mixed concrete in the province showed an increasing trend, recording 460,000 lubes in March, 670,000 lubes in April, and 700,000 lubes in May.
An official from the Gangwon Do Remicon Industry Cooperative said, “If the supply delay is prolonged, a delay in the construction period will be inevitable.”
