Prices of Iron Rods and Cement Go Up

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Prices of Iron Rods and Cement Go Up

October 31: With the construction season about to begin, the prices of construction materials, especially iron rods and cement have gone up. The infrastructure development in Nepal starts after the Dashain, Tihar, and Chhath festivals. The prices of construction materials and cement have risen with the onset of the construction season and rising prices of coal in the international market.

At present, the price of an iron rod has gone up by Rs 6 to 10 while the price of cement is expected to rise by 20 percent. Ravi Singh, president of the Federation of Contractors Association of Nepal, said that the price hike of iron-based construction materials would hit the country at the start of the construction season. He said that the government's policy on the import of sponge iron and billet was estimated to reduce the price of iron ore but it has gone reverse resulting in a price hike.

According to Singh, the market price of rods made from sponge iron and prime billet were Rs 79 and Rs 83 respectively before the Replacement Bill was announced. But now, the cost price of iron rods is anything between Rs 102 to Rs 106, he added.

Singh said that the price has been hiked due to carteling at a time when the rolling mills have almost stopped production.

He added that large cement industries have not shown any interest in reducing prices despite tough competition among themselves. 

Meanwhile, the President of Nepal Cement Producers Association Dhurba Thapa confirmed that the price of cement has also gone up by 20 percent.

Thapa said that the price of coal has also gone up in Nepal due to the price hike in the international market and the price of cement has also gone up in India. Thapa said that all the cement industries are likely to increase the prices within a month even though some industries have already hiked the prices. "There is a fear that the price of coal in the world market will go up and there will be a shortage of coal," he said.

Similarly, Chairman of Saurabh Group Bishnu Prasad Neupane also said that the price of coal has gone up in the international market.

Industries that produce iron rods by producing billets within the country have increased the price by Rs 6 while industries producing rods by importing the billets have hiked the price by Rs 10. The industries have to pay Rs 34 per kg for importing coal compared to Rs 15 in the past, so the price of cement has gone up, informed Neupane.  

Earlier, the price of the rod was Rs 84, but it has now gone up by Rs 6 to 10. 



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