KATHMANDU, Dec 21: The prices of steel rod and cement -- two major construction materials -- have started to go upward in the market. The prices of bricks, on the other hand, is set to go down, as manufacturers have started taking orders at lowered rates for the upcoming production season.

However, contractors say the net impact of the changes would still put consumers in unfavorable situation because of higher weightage of rod and cement (29 percent each) in the overall construction cost, compared to bricks (12 percent).

According to Nepal Construction Materials Dealers Association, the prices of steel and cement -- both Nepali as well as Indian -- have already inched up in the market. Compared to a fortnight ago, the prices of steel have already gone up in the range of Rs 2 to 3 per kg now. Steel rod is presently retailed at Rs 62 to Rs 63 per kg.

“Local manufacturers say this is just a start of upward jump in prices,” said Ajit Chalise, a construction materials retailer in Kaushaltar, adding that the prices would jump further up in the days ahead.

The manufacturers have mainly hinted about the rise because of the rise in the prices of steel in international market. Indian manufacturers too increased steel prices recently.

“Apart from this, increasing load shedding hours will also have its impact on the prices, raising it further compared to normal power supply situation,” said Chalise.

Likewise, the prices of Nepali as well as Indian cements have inched up by Rs 10 per sack (of 50 kgs) in the market over the period. Nepali cement is presently traded at Rs 550 per sack, while Indian cement is priced Rs 600.

Cement dealers told myrepublica.com that the prices might rise further, referring to start of construction season, which would widen demand-supply gap, and also other factors like load shedding and transportation problems due to political instability.

The prices of sand and aggregates, meanwhile, have remained constant at Rs 40 and Rs 42 per square feet respectively.

However, prices of bricks have gone down substantially in the market with the onset of fresh manufacturing season starting in a month. Dealers even indicated that the price of bricks could drop to Rs 6,000 per 1000 units.

“Manufacturers have already started accepting orders for supplying bricks at Rs 6 per unit. They might accept orders for fresh supplies at still lower price,” said Chalise, indicating that consumers over the next couple of months will mainly find relief in terms of bricks prices.

At present, prices of grade B bricks, which also includes broken pieces, stands at Rs 7,500 per 1000 units. Grade A bricks, on the other hand, still costs as high as Rs 9,000 per thousand units.

[Courtesy: MyRepublica.com]