LatAm Cement – Building the New Normal

We believe the impact of the Covid pandemic on the industry will not be as bad as feared by the market. We assess our names using a framework to evaluate the most attractive countries, end markets, and valuations.

We see two important impacts of the COVID-19 pandemic on the cement industry: 1) long-term, we think there may be a trend of people leaving urban centres driven by people’s ability to more easily work from home (WFH); and 2) a short-term impact caused by a large increase in the saving rates during the pandemic, which may more than offset the impact of the short-term GDP drop on cement demand.