No Respite for Cement Industry... Seosomun Collapse Shakes Supply in Greater Seoul Area

Inventory Falls to Less Than Half of Normal Levels Due to Railway Suspension

Reserve Stocks Only Last a Day or Two

Extended Disruptions Would Inevitably Impact Construction Sites

Alternative Supply Plans Also Face 'Soaring Transportation Costs'

Due to the aftermath of the Seosomun overpass collapse, the access route to the Susaek distribution base, the largest cement storage facility in the northwestern part of Seoul, has been severed, making concerns over disruptions in cement supply to the greater Seoul area a reality. The government plans to normalize railway operations within this week. The industry is on high alert, as any delays in restoration would inevitably lead to damage at construction sites.

On the 28th, the area around the Seosomun Overpass collapse site in Seodaemun-gu, Seoul is under control. Photo by Yonhap News.

According to industry sources on the 29th, railway operations have been disrupted since the Seosomun overpass collapse, causing cement inventories at the distribution base (silo) near Susaek Station in Eunpyeong-gu, Seoul, to fall to less than half of normal levels. The Susaek area serves as the largest storage base in the metropolitan region, supplying cement to northwestern Seoul and northeastern Gyeonggi Province.

Major domestic cement companies, including Hanil Cement, Ssangyong C&E, and Sungshin Cement, operate silos in this area. Cement produced at inland plants in Danyang and Jecheon in North Chungcheong Province, and Yeongwol in Gangwon Province, is transported by rail to the Susaek base, and then shipped to ready-mix concrete plants and construction sites across the metropolitan area. The silos in the Susaek area have a maximum storage capacity of about 19,000 tons, with an average daily shipment of approximately 8,000 tons.

For now, the industry is using reserve stocks to meet urgent demand. However, these reserves are only sufficient to last a day or two, and industry experts explain that if the situation drags on, supply disruptions will be unavoidable. An official from the Korea Cement Association said, "We see this week as the practical limit for relying on reserve stock," adding, "As government authorities have stated their intention to normalize railway operations by the weekend, we are waiting and trusting that the situation will be resolved."

If railway operations are not normalized early as the government envisions, the industry is considering using the silo in Uiwang, Gyeonggi Province, as an alternative supply base. However, the Uiwang base alone cannot handle the entire volume previously supplied from Susaek, and some shipments may need to be transported directly from production plants in North Chungcheong and Gangwon Provinces to metropolitan sites, which could worsen the situation. There are also concerns that the recent rise in international oil prices will further increase transportation costs, sharply raising the logistics burden for the cement industry.

With the construction industry already experiencing a prolonged downturn, the unexpected logistics disruption is adding to their woes. According to the Korea Cement Association, domestic cement shipments last year totaled about 38.1 million tons, falling below 40 million tons for the first time in 34 years since 1991. This year, shipments are expected to drop further to around 36 million tons.

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