KATHMANDU, Nov 29: Manufacturers of iron rods have reduced the price of their products by up to Rs 15 per kg with the fall in the price of the raw materials in the international market.
Earlier, citing the government policy, the manufacturers had hiked the price of the construction material by a notable amount. According to Nepal Steel Rolling Mills Association (NSRMA), the price of iron bars has dropped to as low as Rs 98 per kg from Rs 113 per kg.
The government, citing the need to facilitate the domestic manufacturing industry, reduced the customs tax and excise duty on imported sponge iron to zero through the revised budget for the fiscal year 2021/22. Sponge iron is a crucial raw material for iron bars.
On the other hand, the government increased the taxes on the import of billet, another form of raw material to produce iron bars. A faction of the manufacturers of the construction materials have been protesting against the government’s move, stating that the government policy favors only a handful of entrepreneurs.
According to NSRMA, the manufacturers concerned have stepped up efforts to reduce the prices of their products mainly due to a drop in prices of coal and iron billet in the foreign market. Last week, the price of iron billet decreased by around USD 7 per ton to USD 625 per ton while that of coal also came down from USD 240 to USD 190 per ton, according to the traders.