Sri Lanka’s total cement volumes is forecasted to recover in 2022 financial year after an anticipated dip in 2021 financial year due to COVID-19 induced economic crisis, according to First Capital Research.
In a latest report, the Colombo-based Research House forecasted a potential 8 percent Year-on-Year (YOY) dip in cement volumes during current financial year.
However, it forecasted a 12 percent YoY growth in cement volumes in 2022 financial year with the demand stemming from the residential segment and commencement of infrastructure projects.
In particular, the listed cement manufacturer, Tokyo Cement is expected to benefit from the recovery of the local demand driven by mega projects such as Colombo Port City and Ruwanpura Express.
“We expect construction of Port City to resume relatively faster, amidst the already made investment commitment by the Chinese investors. Tokyo is the primary concrete supplier with its customized ready-mix designs supplied by Tokyo Super Mix,” it noted.
It also expects Tokyo Cement to increase its market share amidst the pickup in volumes and due to grasp of market share from importers, with the government increasing para-tariff on cement imports.