NEPAL: Cement, steel dearer

Prices of major construction materials like cement and steel continue to increase despite low demand in the market. Price of bricks, however, has come down due to low demand and increased supplies from Tarai districts.

Cement has become dearer by Rs 50 to Rs 60 per sack (50 kg) depending on brands. Similarly, price of steel has increased by as much as Rs 22 per kg.

Dhurba Thapa, vice-president of Cement Manufacturer´s Association of Nepal, said price of cement is increasing despite falling demand in the market due to rise in prices of raw materials and high transportation costs. 

Price of clinker - the major raw material for cement - has increased to Rs 4,200 per tons from less than Rs 3,000 per tons recorded a few months ago. At present, cement is available in range of Rs 550 to Rs 710 per sack depending on strength.

Bal Krishna Shrestha, immediate past president of Nepal Steel Rolling Mills Association, said price of steel is increasing despite falling demand in the market due to heavy rise in price of fuel, furnace oil and iron billets. While price of furnace oil has increased by Rs 10 per liter, price of billets has increased by almost $50 per tons. 

Rise in labor cost is also one of the key factors behind rise in steel prices, according to Shrestha.

“Our Indian suppliers are reluctant to export billets because there is high demand for construction materials in India itself. This is affecting steel prices in the domestic market,” he added.

Shrestha, who is also the managing director of Hama Steels, also informed that his company raised price of Hama brand of steel by Rs 2 per kg effective from Tuesday.

Price of steel in the market ranges from Rs 72 to Rs 80 per kg, excluding Rs 1 per kg excise duty and 13 percent VAT.

However, price of bricks have gone down by Rs 500 to Rs 700 per 1,000 units. Price of ´A´ grade bricks has dropped to Rs 8,000 per 1,000 units from Rs 8,700 for the same quantity recorded a month ago. Similarly, price of ´B´ grade bricks has come down to Rs 7,000 per 1,000 units from last month´s Rs 7,500 per 1,000 units.

Tirtha Man Damaru, proprietor of Choma Ganesh Itta Bhatta Udhyog, attributes the drop in prices to decline in construction activities and steady rise in supply of bricks from Tarai districts.