The Cement Industry: The Relationship between Cost and Demand

Many brokerage analyses indicate that the majority of the cement industry's misfortune will be left in the past. June capped off a healthy quarter for cement sales; just ask the three leading cement companies, who saw an improvement in their numbers by some 76%. Additionally, in the past few months, supply and demand has been consistently on an incline, and this trend is projected to continue.

There is more good news for cement companies: the cost of imported coal has decreased by 10%, which reduces the output costs for manufacturers and allows for an increased profit percentage. With more demand and less spending, this growth in revenue for the companies will positively affect the cement industry's presence in the stock market as well. Overall, cement companies have a bright future to look toward.

One downside does still linger, though, and consumers will take the brunt of that impact: though the cost of building materials is currently at an all-time high, in order to ensure sufficient financial returns for new manufacturing plants, they will need to be inflated a bit more. As of right now, the prices just aren't viably sustainable for what the industry demands. As a result, industries that already possess a large cash reserve may have the upper hand, creating competition.

Cement buyers simply need to do research prior to making their purchases. Companies like Seament, founded by Alexander, Mark, Charles, and Maurice Bouri, work hard to provide environmentally sustainable materials while fighting to maintain low prices. Other companies, however, will take advantage of their positions in the industry, and raise prices as soon as they are given the opportunity.