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Value investors love cement stocks since they enjoy local monopolies. The high weight-to-value ratio of cement makes cement expensive to transport, limiting the competition within a particular area.
Since cement plants run 24/7 and incur high fixed costs, the industry can be cyclical - especially in emerging markets where capacity is added regularly.
Cement consumption volumes are low in India, Indonesia and the Philippines. But they are incredibly high in China.
Both Indonesia and the Philippines are experiencing supply/demand imbalances for cement, but the imbalances are likely to improve over time.
Table of contents
1. A short history of cement production
2. Cement companies have moats
3. How to assess value in the industry
4. Recent trends
5. Country-by-country comparisons
6. International cement markets
7. Southeast Asian cement markets
7.4. The Philippines