[Special Report] Geopolitical Risks Drive Thermal Coal Prices Up Sharply... Cement Stocks Rally

[Asia Economy Reporter Kwon Jae-hee] As the supply disruption of thermal coal caused by geopolitical risks in Ukraine raises concerns about a cement shortage, cement companies are showing a strong performance on the 12th.

As of 1:43 PM on the same day in the KOSPI market, Seongsin Cement Preferred shares are trading at 21,900 KRW, up 29.97% from the previous day.

Korea Cement (10.83%), Seongsin Cement (5.60%), and Asia Cement (3.24%) are also rising together.

Recently, due to the Russia-Ukraine war, thermal coal prices have surged, increasing anxiety about the cement supply and demand situation. Thermal coal is a key raw material accounting for 30-40% of cement production costs.

Accordingly, cement companies' stock prices are rising with expectations of sales price increases. In fact, if the cement price rises by about 10,000 KRW per ton, average sales are expected to increase by approximately 15%.

Earlier, when concerns about cement supply arose, the government took measures such as monitoring the thermal coal supply situation and ready-mix concrete production and shipment volumes.

The Ministry of Land, Infrastructure and Transport also requested the cement and ready-mix concrete manufacturing industries to expand production for stable material supply management.

Accordingly, on the 8th, the cement industry decided to expand second-quarter cement production by 36% compared to the first quarter through measures such as additional operation of production facilities, converting export volumes to domestic sales, and diversifying import countries to manage thermal coal supply.

This content was produced with the assistance of AI translation services.