FORM 10-Q
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549


(Mark One)
[X]  Quarterly report pursuant to Section 13 or 15(d) of the
       Securities Exchange Act of 1934

     For the quarterly period ended September 30, 2004, or

[ ]  Transition report pursuant to Section 13 or 15(d) of the
       Securities Exchange Act of 1934

     For the transition period from _________________ to ___________________.

Commission file number:  0-2757

                          THE MONARCH CEMENT COMPANY
            (Exact name of registrant as specified in its charter)

            KANSAS                                      48-0340590___
(state or other jurisdiction of                     (I.R.S. employer
 incorporation or organization)                    identification no.)

    P.O. BOX 1000, HUMBOLDT, KANSAS                     66748-0900
(address of principal executive offices)                (zip code)

Registrant's telephone number, including area code:  (620) 473-2222


             (former name, former address and former fiscal year,
                        if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  YES [X]   NO [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).  YES [ ]   NO [X}

As of November 9, 2004, there were 2,403,322 shares of Capital Stock, par
value $2.50 per share outstanding and 1,623,636 shares of Class B Capital
Stock, par value $2.50 per share outstanding.


PART  I - FINANCIAL INFORMATION

The condensed consolidated financial statements included in this report have
been prepared by our Company without audit.  Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
Our Company believes that the disclosures are adequate to make the information
presented not misleading. The accompanying consolidated financial statements
reflect all adjustments that are, in the opinion of management, necessary for
a fair statement of the results of operations for the interim periods
presented.  Those adjustments consist only of normal, recurring adjustments.
The condensed consolidated balance sheet of the Company as of December 31,
2003 has been derived from the audited consolidated balance sheet of the
Company as of that date.  These condensed consolidated financial statements
should be read in conjunction with the consolidated financial statements and
notes thereto included in our Company's most recent annual report on Form 10-K
for 2003 filed with the Securities & Exchange Commission.  The results of
operations for the period are not necessarily indicative of the results to be
expected for the full year.

<Page>
Item 1.  Financial Statements

<Table>
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
September 30, 2004 and December 31, 2003

<Caption>
ASSETS                                                2 0 0 4      2 0 0 3
                                                   (Unaudited)
<S>                                                <C>           <C>
CURRENT ASSETS:
  Cash and cash equivalents                        $  3,553,499  $  5,438,018
  Receivables, less allowances of $624,000 in 2004
    and $591,000 in 2003 for doubtful accounts       23,685,093    13,852,596
  Inventories, priced at cost which is not in
    excess of market-
      Finished cement                              $  1,097,490  $  2,553,258
      Work in process                                 1,661,707       919,646
      Building products                               1,767,528     1,559,424
      Fuel, gypsum, paper sacks and other             4,736,273     4,022,894
      Operating and maintenance supplies              8,711,526     7,063,030
          Total inventories                        $ 17,974,524  $ 16,118,252
  Deferred income taxes                                 572,225       573,000
  Prepaid expenses                                      450,775       155,011
          Total current assets                     $ 46,236,116  $ 36,136,877

PROPERTY, PLANT AND EQUIPMENT, at cost, less
  accumulated depreciation and depletion of
  $111,182,281 in 2004 and $105,703,279 in 2003      80,625,299    77,884,890
DEFERRED INCOME TAXES                                 1,374,750     2,447,000
INVESTMENTS                                          14,355,547    11,502,902
OTHER ASSETS                                          1,624,534     1,860,762
                                                   $144,216,246  $129,832,431


LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
  Accounts payable                                 $ 11,634,390  $  6,435,292
  Bank loan payable                                   8,898,814         -
  Current portion of advancing term loan              3,432,496     3,353,778
  Accrued liabilities                                 3,722,205     5,284,474
          Total current liabilities                $ 27,687,905  $ 15,073,544

LONG-TERM DEBT                                       16,910,002    19,694,501
ACCRUED POSTRETIREMENT BENEFITS                      10,237,588     9,554,920
ACCRUED PENSION EXPENSE                                 651,191       385,543
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES        1,887,946     1,915,605

STOCKHOLDERS' INVESTMENT:
Capital stock, par value $2.50 per share,
  1 vote per share - Authorized 10,000,000
  shares, Issued 2,403,197 shares at 9/30/2004
  and 2,389,381 shares at 12/31/2003               $  6,007,993  $  5,973,453
Class B capital stock, par value $2.50 per share,
  supervoting rights of ten votes per share,
  restricted transferability, convertible at all
  times into Capital Stock on a share-for-share
  basis - Authorized 10,000,000 shares, Issued
  1,623,761 shares at 9/30/2004 and 1,637,577
  shares at 12/31/2003                                4,059,402     4,093,942
Retained earnings                                    73,264,219    71,180,923
Accumulated other comprehensive income                3,510,000     1,960,000
          Total stockholders' investment           $ 86,841,614  $ 83,208,318
                                                   $144,216,246  $129,832,431

See notes to condensed consolidated financial statements
</Table>

<Page>

<Table>
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Three Months and the Nine Months Ended September 30, 2004 and 2003
(Unaudited)

<Caption>


                                For the Three Months Ended    For the Nine Months Ended
                                September 30, September 30, September 30, September 30,
                                    2004         2003            2004         2003
<S>                              <C>          <C>             <C>          <C>
NET SALES                        $44,365,950  $40,762,569    $112,745,787  $89,325,949

COST OF SALES                     38,331,126   33,766,360      98,693,562   76,206,489

   Gross profit from operations  $ 6,034,824  $ 6,996,209     $14,052,225 $ 13,119,460

SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES          2,799,342    3,102,130       8,926,379    8,929,313

   Income from operations        $ 3,235,482  $ 3,894,079     $ 5,125,846  $ 4,190,147

OTHER INCOME (EXPENSE):
  Interest income                $   109,861  $   110,037     $   249,728  $   287,141
  Interest expense                  (227,597)    (255,900)       (628,265)    (786,221)
  Other, net                         122,403       84,372         521,770      815,727

                                 $     4,667  $   (61,491)    $   143,233  $   316,647

   Income before taxes on income $ 3,240,149  $ 3,832,588     $ 5,269,079  $ 4,506,794

PROVISION FOR TAXES ON INCOME        975,000    1,240,000       1,575,000    1,440,000

NET INCOME                       $ 2,265,149  $ 2,592,588     $ 3,694,079  $ 3,066,794

RETAINED EARNINGS, beg. of period 71,804,461   70,250,858      71,180,923   70,582,044

Less cash dividends                  805,391      805,391       1,610,783    1,610,783

RETAINED EARNINGS, end of period $73,264,219  $72,038,055     $73,264,219  $72,038,055

Basic earnings per share                $.56         $.64            $.92         $.76

Cash dividends per share                $.20         $.20            $.40         $.40
</Table>
<Table>
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months and the Nine Months Ended September 30, 2004 and 2003 (Unaudited)

<Caption>
                                For the Three Months Ended    For the Nine Months Ended
                               September 30, September 30,  September 30, September 30,
                                    2004         2003            2004          2003
<S>                              <C>          <C>             <C>          <C>
NET INCOME                       $ 2,265,149  $ 2,592,588     $ 3,694,079  $ 3,066,794
UNREALIZED APPRECIATION
  ON AVAILABLE FOR SALE
  SECURITIES (Net of
  deferred tax expense
  of $200,000, $180,000,
  $1,000,000 and $460,000,
  respectively)                      250,000      280,000       1,550,000      700,000
COMPREHENSIVE INCOME             $ 2,515,149  $ 2,872,588     $ 5,244,079  $ 3,766,794

See notes to condensed consolidated financial statements
</Table>
<Page>

<Table>
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2004 and 2003 (Unaudited)
<Caption>
                                                         2004          2003
<S>                                                  <C>           <C>
OPERATING ACTIVITIES:
 Net income                                          $  3,694,079  $  3,066,794
 Adjustments to reconcile net income to
  net cash provided by operating activities:
   Depreciation and depletion                           7,549,649     8,214,200
   Minority interest in earnings (losses) of
    subsidiaries                                          (19,955)     (278,490)
   Deferred income taxes, long-term                            25           415
   Gain on disposal of assets                            (278,708)     (377,577)
   Realized gain on sale of other investments             (33,741)     (404,616)
   Change in assets and liabilities, net of
    acquisitions:
     Receivables, net                                  (9,832,497)   (1,741,283)
     Inventories                                       (1,856,272)   (1,729,156)
     Refundable federal and state income taxes               -          562,496
     Prepaid expenses                                    (295,764)     (860,905)
     Other assets                                          13,317        11,909
     Accounts payable and accrued liabilities           5,247,612     1,683,762
     Accrued postretirement benefits                      682,668       297,031
     Accrued pension expense                              265,648       (32,638)

    Net cash provided by operating activities        $  5,136,061  $  8,411,942

INVESTING ACTIVITIES:
 Acquisition of property, plant and equipment        $(10,183,300) $ (4,521,127)
 Proceeds from disposals of property, plant
  and equipment                                           579,157       447,824
 Payment for purchases of equity investments             (589,871)     (240,849)
 Proceeds from disposals of equity investments            320,967       657,726
 Net purchases of subsidiaries' stock                    (119,000)         -

    Net cash used for investing activities           $ (9,992,047) $ (3,656,426)

FINANCING ACTIVITIES:
 Proceeds from (retirement of) bank loans            $  6,193,033  $ (2,086,707)
 Cash dividends paid                                   (3,221,566)   (3,221,566)

    Net cash provided by (used for) financing
     activities                                      $  2,971,467  $ (5,308,273)

Net increase (decrease) in cash and cash equivalents $ (1,884,519) $   (552,757)

CASH AND CASH EQUIVALENTS, beginning of year            5,438,018     3,909,215

CASH AND CASH EQUIVALENTS, end of period             $  3,553,499  $  3,356,458


Interest paid, net of amount capitalized                 $644,995      $807,497
Income taxes paid, net of refunds                      $1,915,998      $335,649

See notes to condensed consolidated financial statements

</Table>


<Page>



THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004 and 2003 (Unaudited), and December 31, 2003


1.	For a summary of accounting policies, the reader should refer to Note 1 of
the consolidated financial statements included in our Company's most recent
annual report on Form 10-K.
2.	Basic earnings per share of capital stock has been calculated based on the
weighted average shares outstanding during each of the reporting periods.
The weighted average number of shares outstanding was 4,026,958 in the
third quarter of 2004 and 2003 and in the first nine months of 2004 and
2003.  The Company has no common stock equivalents and therefore, does not
report diluted earnings per share.
3.	Our Company groups its operations into two lines of business - Cement
Business and Ready-Mixed Concrete Business.  The "Cement Business" refers
to our manufacture and sale of cement and "Ready-Mixed Concrete Business"
refers to our ready-mixed concrete, concrete products and sundry building
materials business.  Following is condensed information for each segment
for the periods indicated (in thousands):
<Table>


<Caption>
                                         Three Months Ended Nine Months Ended
                                   9/30/04  9/30/03   9/30/04  9/30/03
       <S>                                <C>      <C>       <C>      <C>
       Sales to Unaffiliated Customers-
         Cement Business                  $17,709  $17,722   $39,805  $35,581
         Ready-Mixed Concrete Business     26,657   23,041    72,941   53,745
       Intersegment Sales-
         Cement Business                    3,224    3,387     8,254    8,256
         Ready-Mixed Concrete Business        -        -         -        -
       Operating Profit-
         Cement Business                    2,921    3,008     5,957    5,228
         Ready-Mixed Concrete Business        315      886      (831)  (1,038)
       Capital Expenditures-
         Cement Business                    2,610      391     5,274    1,002
         Ready-Mixed Concrete Business      1,699      965     4,909    3,519
                                                              Balance as of
                                                      9/30/04 12/31/03
       Identifiable Assets-
         Cement Business                                     $78,292  $70,212
         Ready-Mixed Concrete Business                        44,444   37,798
       Corporate Assets-                                      21,480   21,822
</Table>

4.	The Company records revenue from the sale of cement, ready-mixed concrete,
concrete products and sundry building materials when the products are
delivered to the customers.  Concrete products are also sold through long-
term construction contracts.  Revenues for those contracts are recognized
on the percentage-of-completion method based on the costs incurred relative
to total estimated costs.  Full provision is made for any anticipated
losses. Billings for long-term construction contracts are rendered monthly,
including the amount of retainage withheld by the customer until contract
completion.  Retainages are included in accounts receivable and are
generally due within one year.
5.	Capital expenditures for property, plant and equipment were approximately
$10,183,300 during the first nine months of 2004.  These funds were
primarily used for the installation of the coal mill in the Cement Business
and to upgrade equipment in the Ready-Mixed Concrete Business.
6.	The following table presents the components of net periodic costs for the
nine months ended September 30, 2004 and 2003:
<Table>
<Caption>
                                       Pension Benefits      Other Benefits
                                        2004      2003       2004       2003
   <S>                                <C>        <C>        <C>       <C>
   Service cost                       $343,290  $199,716  $  319,570  $133,082
   Interest cost                     1,221,443   809,678     876,397   684,410
   Expected return on plan assets   (1,373,429) (743,523)      -         -
   Amortization of prior
    service costs                       56,069    36,195       -         -
   Recognized net actuarial gain        18,274    66,056       -         -
   Unrecognized net loss                 -         -         321,112   138,507
     Net periodic pension expense     $265,647  $368,122  $1,517,079  $955,999
</Table>



The following table presents the components of net periodic costs for the
three months ended September 30, 2004 and 2003:
<Table>
<Caption>
                                       Pension Benefits      Other Benefits
                                        2004      2003       2004       2003
   <S>                                <C>        <C>        <C>       <C>
   Service cost                       $113,312  $ 55,309    $106,531  $ 46,299
   Interest cost                       402,322   224,229     292,167   238,106
   Expected return on plan assets     (453,337) (205,908)      -          -
   Amortization of prior
    service costs                       18,507    10,024       -          -
   Recognized net actuarial gain         6,033    18,293       -          -
   Unrecognized net loss                  -         -        107,045    48,186
     Net periodic pension expense     $ 86,837  $101,947    $505,743  $332,591
</Table>


     As previously reported in our financial statements for the year ended
December 31, 2003, we do not expect to contribute to the pension plan
in 2004.  The other benefits consist of postretirement benefits that are self-
insured by Monarch and are paid out of Monarch's general assets.  As
previously disclosed in our financial statements for the year ended December
31, 2003, Monarch expects to contribute $1,000,000 to this plan in 2004.  As
of September 30, 2004, we have contributed $834,411 and anticipate
contributing an additional $225,000 to this plan in 2004 for a total of
approximately $1,060,000.

<Page>

THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


FORWARD-LOOKING STATEMENTS

     Certain statements under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations," and elsewhere in
this Form 10-Q report filed with the Securities and Exchange Commission,
constitute "forward-looking statements".  Except for historical information,
the statements made in this report are forward-looking statements that involve
risks and uncertainties.  You can identify these statements by forward-looking
words such as "should", "expect", "anticipate", "believe", "intend", "may",
"hope", "forecast" or similar words.  In particular, statements with respect
to variations in future demand for our products in our market area, the
timing, scope, cost and benefits of our proposed and recently completed
capital improvements and expansion plans, including the resulting increase in
production capacity, our forecasted cement sales, the timing and source of
funds for the repayment of our line of credit, and our anticipated increase in
solid fuels and electricity required to operate our facilities and equipment
are all forward-looking statements.  You should be aware that forward-looking
statements involve known and unknown risks, uncertainties, and other factors
that may affect the actual results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among
others:

*	general economic and business conditions;
*	competition;
*	raw material and other operating costs;
*	costs of capital equipment;
*	changes in business strategy or expansion plans;
*	demand for our Company's products;
*	cyclical and seasonal nature of our business;
*	the affect weather has on our business;
*	the affect of environmental and other government regulation; and
*	the affect of federal and state funding on demand for our products.

RESULTS OF OPERATIONS

     Our products are used in residential, commercial and governmental
construction.  For several years we experienced continued increases in the
demand for our products. The combination of residential, commercial and
governmental construction activities resulted in the need for increased
production to meet our customers' needs. In response to those needs, we made
investments in our plant and equipment to increase production and improve
efficiencies.  We are confident that we will benefit from these investments as
the economy continues to improve.

     For the first nine months of 2004, we are encouraged with the level of
construction activity in our market area.  Although intermittent rains have
hampered construction projects and reduced efficiencies in our ready-mixed
concrete operations, sales continue to exceed last year's year-to-date levels.
For the balance of the year, we anticipate continued strong demand for our
products in both the Cement Business and Ready-Mixed Concrete Business
although sales could be adversely affected by wetter conditions or an early
onset of winter.

3RD QUARTER

     Consolidated net sales for the quarter ended September 30, 2004,
increased by $3,603,381 when compared to the quarter ended September 30, 2003.
Sales in our Cement Business were lower by $12,864 while sales of Ready-Mixed
Concrete Business increased $3,616,245.  The Ready-Mixed Concrete Business
benefited from higher concrete sales volumes and increased billings for
construction contracts.

     The overall gross profit rate for the three months ended September 30,
2004 was 13.6% versus 17.2% for the three months ended September 30, 2003
primarily due to increased production costs associated with construction
contracts.

     Selling, general, and administrative expenses decreased by 9.8% during
the third quarter of 2004 compared to the third quarter of 2003.  These costs
are normally considered fixed costs that do not vary significantly with
changes in sales volume.  The decrease is primarily due to a reduction in
workers' compensation cost.

     The effective tax rates for the third quarter of 2004 and 2003 were 30.1%
and 32.4%, respectively.  The Company's effective tax rate differs from the
federal and state statutory income tax rate primarily due to the effects of
percentage depletion and minority interest in consolidated income.

YEAR-TO-DATE

     Consolidated net sales for the nine months ended September 30, 2004 were
$112,745,787, an increase of $23,419,838 as compared to the nine months ended
September 30, 2003.  Sales in our Cement Business were higher by $4,223,962
while sales in our Ready-Mixed Concrete Business increased by $19,195,876.
Improved economic conditions resulted in higher sales volumes in both the
Cement Business and Ready-Mixed Concrete Business.  The Cement Business also
benefited from modest price increases while billings for construction
contracts added to the Ready-Mixed Concrete Business sales.

     Our overall gross profit rate for the nine months ended September 30,
2004 was 12.5% versus 14.7% for the nine months ended September 30, 2003.
Gross profit rate in the Cement Business decreased 1.0% and gross profit rate
in the Ready-Mixed Concrete Business decreased by 1.6%.

     Selling, general, and administrative expenses decreased less than 1.0%
for the first nine months of 2004 compared to the first nine months of 2003.

     Interest expense decreased $157,956 for the first nine months of 2004 as
compared to the first nine months of 2003 primarily due to a reduction in the
average amount of bank loans outstanding during the first nine months of 2004
compared to the first nine months of 2003 and the capitalization of interest
during 2004.

     Other, net decreased $293,957 during the first nine months of 2004 as
compared to the first nine months of 2003 primarily due to a gain on the sale
of equity investments in 2003.

     The effective tax rates for the nine months ended September 30, 2004 and
2003 were 29.9% and 31.9%, respectively.  The Company's effective tax rate
differs from the federal and state statutory income tax rate primarily due to
the effects of percentage depletion and minority interest in consolidated
income.


LIQUIDITY

     We are able to meet our cash needs primarily from a combination of
operations and bank loans.  Cash decreased during the first nine months of
2004 primarily due to increases in receivables and inventories, the purchase
of equipment and the payment of dividends.

     In December 2003, we renewed our line of credit with our current lender
for another year.  Our current unsecured credit commitment consists of a
$25,000,000 advancing term loan maturing December 31, 2005 and a $10,000,000
line of credit maturing December 31, 2004. These loans each bear floating
interest rates based on JP Morgan Chase prime rate less 1.25% and .75%,
respectively.  The loan agreement contains a financial covenant related to net
worth which the Company was in compliance with at the end of the first nine
months of 2004.  As of September 30, 2004, we had borrowed $19,194,355 on the
advancing term loan and $8,898,814 on the line of credit leaving a balance
available on the line of credit of $1,101,186.  The average daily interest
rate we paid on the advancing term loan during the third quarter of 2004 and
2003 was 3.16% and 2.75%, respectively, and for the first nine months of 2004
and 2003 was 2.89% and 2.91%, respectively.  The average daily interest rate
we paid on the line of credit during the third quarter of 2004 and 2003 was
3.66% and 3.25%, respectively, and the first nine months of 2004 and 2003 was
3.39% and 3.41%, respectively.  As of September 30, 2004, the applicable
interest rate was 3.50% on the advancing term loan and 4.00% on the line of
credit.  The advancing term loan was used to help finance the expansion
project at our cement manufacturing facility.  The line of credit was used to
cover operating expenses primarily during the first half of the year when the
company was building inventory due to the seasonality of our business (see
Seasonality below).  We anticipate that the line of credit maturing December
31, 2004 will be paid using funds from operations or replacement bank
financing.  Our board of directors has given management the authority to
borrow a maximum of $50,000,000.


FINANCIAL CONDITION

     Total assets as of September 30, 2004 were $144,216,246, an increase of
$14,383,815 since December 31, 2003 due primarily to increases in receivables,
inventories, property, plant and equipment and investments.  Increases in
receivables and inventories are common during the first nine months of the
year due to the seasonality of our business (see Seasonality below).
Retainage associated with long-term construction projects also contributed to
the increase in receivables.  Property, plant and equipment increased due to
capital improvements (see Capital Resources below).  Investments increased
primarily as a result of unrealized gains on equity investments.

     Indebtedness increased $6,193,033 during the first nine months of 2004
primarily due to funding the increase in receivables and capital expenditures.

     Stockholders' investment increased 4.4% during the first nine months of
2004 primarily due to the net income.  Unrealized gain on equity investments
also contributed to the increase.

CAPITAL RESOURCES

     The Company regularly invests in miscellaneous equipment and facility
improvements in both the Cement Business and Ready-Mixed Concrete Business.
Capital expenditures during the first nine months of 2004 included
installation of a coal firing system to fuel our precalciner kiln.  This
installation was substantially complete by the end of the third quarter of
2004.  We also invested in routine equipment purchases during the first nine
months of 2004, primarily in the Ready-Mixed Concrete Business.  For the
balance of the year we do not anticipate any significant additional capital
investments.

     Plans are underway to install a new clinker cooler in early 2005 followed
by the conversion of our remaining preheater kiln to a precalciner kiln in
2006.  Additional bank financing will be required to complete these projects.
We do not anticipate any difficulty obtaining such financing based upon our
current financial position.


MARKET RISK

     Market risks relating to the Company's operations result primarily from
changes in demand for our products.  A significant increase in interest rates
could lead to a reduction in construction activities in both the residential
and commercial markets.  Budget shortfalls during economic slowdowns could
cause money to be diverted away from highway projects, schools, detention
facilities and other governmental construction projects.  Reduction in
construction activity lowers the demand for cement, ready-mixed concrete,
concrete products and sundry building materials.  As demand decreases,
competition to retain sales volume could create downward pressure on sales
prices.  The manufacture of cement requires a significant investment in
property, plant and equipment and a trained workforce to operate and maintain
this equipment.  These costs do not materially vary with the level of
production.  As a result, by operating at or near capacity, regardless of
demand, companies can reduce per unit production costs.  The continual need to
control production costs encourages overproduction during periods of reduced
demand.

     Interest rates on the Company's advancing term loan and line of credit
are variable and are based on the JP Morgan Chase prime rate less 1.25% and
..75%, respectively.


INFLATION

     Inflation directly affects the Company's operating costs.  Prices of the
specialized replacement parts and equipment the Company must continually
purchase tend to increase directly with the rate of inflation causing
manufacturing costs to increase.  The manufacture of cement requires the use
of a significant amount of energy.  The Company burns primarily solid fuels,
such as coal and petroleum coke, in its preheater kiln.  We do not anticipate
a significant increase above the rate of inflation in the cost of these solid
fuels, or in the electricity required to operate our cement manufacturing
equipment.  In 2001, the Company added a precalciner to one of its kilns to
increase production capacity.  This precalciner burns natural gas.  Increases
in natural gas prices exceeding the rate of inflation create an above average
increase in manufacturing costs.  The Company has substantially completed the
installation of a coal firing system to its precalciner kiln to minimize the
use of natural gas.


SEASONALITY

     Portland cement is the basic material used in the production of ready-
mixed concrete that is used in highway, bridge and building construction.
These construction activities are seasonal in nature.  During winter months
when the ground is frozen, groundwork preparation cannot be completed.  Cold
temperatures affect concrete set-time, strength and durability, limiting its
use in winter months.  Dry ground conditions are also required for
construction activities to proceed.  During the summer, winds and warmer
temperatures tend to dry the ground quicker creating fewer delays in
construction projects.

     Variations in weather conditions from year-to-year significantly affect
the demand for our products during any particular quarter; however, our
Company's highest revenue and earnings historically occur in its second and
third fiscal quarters, April through September.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The Company has $14,355,547 of equity securities as of September 30,
2004. These investments are not hedged and are exposed to the risk of changing
market prices.  The Company classifies these securities as "available-for-
sale" for accounting purposes and marks them to market on the balance sheet at
the end of each period.  Management estimates that its investments will
generally be consistent with trends and movements of the overall stock market
excluding any unusual situations.  An immediate 10% change in the market price
of our equity securities would have a $860,000 effect on comprehensive income.

     The Company also has $28,093,169 of bank loans as of September 30, 2004.
Interest rates on the Company's advancing term loan and line of credit are
variable and are based on the JP Morgan Chase prime rate less 1.25% and .75%,
respectively.


ITEM 4.  CONTROLS AND PROCEDURES

     The Company maintains disclosure controls and procedures (as defined in
Rules 13a-5(e) and 15d-15(e) under the Exchange Act) that are designed to
ensure that information required to be disclosed in the Company's reports
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the rules and forms of the Securities and
Exchange Commission, and that such information is accumulated and communicated
to the Company's management, including its President and Chief Financial
Officer, as appropriate, to allow timely decisions regarding required
disclosures.  Any controls and procedures, no matter how well designed and
operated, can provide only reasonable assurance of achieving the desired
control objectives.

     The Company's management, including its President and Chairman of the
Board of Directors and Chief Financial Officer, evaluated the effectiveness of
the design and operation of its disclosure controls and procedures within 90
days of the filing date of this Quarterly Report on form 10-Q.  Based on this
evaluation, the Company's President and Chairman of the Board of Directors and
Chief Financial Officer have concluded that the design and operation of these
disclosure controls and procedures are effective.  There has been no change in
the Company's internal control over financial reporting during the quarter
ended September 30, 2004 that has materially affected, or is reasonably likely
to materially affect, the Company's internal control over financial reporting.




                         PART  II.   OTHER INFORMATION

Item 6.  Exhibits

              31.1  Certificate of the President and Chairman of the Board
              pursuant to Section 13a-14(a)/15d-14(a) of the Securities
              Exchange Act of 1934.

              31.2  Certificate of the Chief Financial Officer pursuant
              to Section 13a-14(a)/15d-14(a) of the Securities Exchange
              Act of 1934.

32.1  18 U.S.C. Section 1350 Certificate of the President and
Chairman of the Board dated November 12, 2004.

32.2  18 U.S.C. Section 1350 Certificate of the Chief Financial
Officer dated November 12, 2004.




                            S I G N A T U R E S

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                          THE MONARCH CEMENT COMPANY
                                                 (Registrant)



Date    November 12, 2004                  /s/ Walter H. Wulf, Jr.
                                          Walter H. Wulf, Jr.
                                          President and
                                          Chairman of the Board



Date    November 12, 2004                  /s/ Debra P. Roe
                                          Debra P. Roe, CPA
                                          Chief Financial Officer and
                                          Assistant Secretary-Treasurer




<Page>
                                 EXHIBIT INDEX


 Exhibit
 Number                            Description

 31.1            Certificate of the President and Chairman of the
                   Board pursuant to Section 13a-14(a)/15d-14(a)
                   of the Securities Exchange Act of 1934

 31.2            Certificate of the Chief Financial Officer
                   pursuant to Section 13a-14(a)/15d-14(a)
                   of the Securities Exchange Act of 1934

 32.1            18 U.S.C. Section 1350 Certificate of the President
                   and Chairman of the Board dated November 12, 2004.

 32.2            18 U.S.C. Section 1350 Certificate of the Chief
                   Financial Officer dated November 12, 2004.