The prices of major construction materials — cement and steel in particular — have soared sharply, pushing the cost of constructions up by as much as 20 per cent. Referring to supply bottlenecks at the time of main construction time, cement dealers have jacked up cement prices in a range of 18 to 32 per cent as compared to prices recorded few months ago. Price of steel rod too has jumped by more than 25 per cent than last month. The prices of the construction materials fell down during January to February with the difference of some Rs 20-30, whereas, with the start of March the prices started soaring as high as Rs 20-30.
Retailers say the price of popular domestic cements like Hetauda and Udaypur cement has jumped up to Rs 650 per sack (50 kgs). The increase is still sharper in case of Indian cement, according to the contractors. Latest pricing in the market shows that the price of Indian cement like Ultra-Tech has jumped to as high as Rs 725 per sack. Since cement occupies 29 per cent in the overall construction cost, such a sharp rise in cement has made new constructions expensive by about 10 per cent than what it was a month ago, said Roshan Dahal, a contractor and also the past president of Nepal Construction Materials Dealers´ Association. Dahal elaborated that the rolling mill association — an umbrella association of steel manufacturers — too has raised the prices of steel rod to Rs 72 per kg. A month ago, it was priced Rs 62 per kg. The association has attributed the rise to increment in prices of raw materials in international market and also the increasing load shedding hours, which has added in the cost of pro duction. The jump in prices of steel rod, another crucial construction material that contributes 29 per cent in overall construction cost, has further added financial burden of about seven per cent.
Apart from these two materials, contractors said the price of sand too has jumped to about Rs 50 per cubic feet. The rate is two-fold of what was this season last year. It is also a rise of about 18 per cent than the price recorded a month ago. Dealers, moreover, informed that brick manufacturers, who earlier booked supplies ahead of the manufacturing season at Rs 7,000 per thousand units, have again refused to lower the prices. “Buyers, who booked the supply a month ago, are getting the supplies at lowered rates. But if you want to place order to retailers or manufacturers now, you will still need to pay about Rs 8,000 per thousand units,” said Ananga Pal Shrestha — director of A S hardware and construction companies.
source: THT