The price of cement - a key construction material -- has come down in the range of Rs 25-30 per sack (50 kg) from the third week of July.

A snap survey conducted by Republica shows that almost all the manufacturers have reduced the price citing low demand in the market.
Cement producers say they reduced the price mid-July to mid-October is considered off season for construction in both Nepal and India. They also said price of clinker also goes down during the period due to low demand.

“We reduced the price of cement here as the price of clinker - a major raw material for of cement -- has gone down in India,” said Aatma Ram Murarka, president of Cement Producers Association and proprietor of Shaktiman Cement. “Most of the manufacturers are totally dependent on India for clinker.”

Dhruba Thapa, proprietor of Tej Cement, said demand for cement normally goes down during rainy season due to slowdown in construction works. “It is natural for the prices to go down when demand falls,” he added.

With the fresh adjustment in prices, cement is available in the market in range of Rs 711 to Rs 725 per sack, depending on brand and strength. Prices of Tej Cement and Ambe Cement have gone down by Rs 30 per sack each and are selling at Rs 711 and Rs 680 per sack respectively. Similarly, RMC Cement has become cheaper by Rs 25 per sack and is selling at Rs 625 per sack. Prices of Jagadamba Cement and Ultra Cement have come down by Rs 30 per sack each to Rs 660 and Rs 725 per sack respectively. Shaktiman Cement has cheaper by Rs 25 per sack, making it Rs 680 per sack.

There are 36 cement manufacturing companies in the country and only six of them produce clinkers on their own. As most of the companies import clinker from India, any change in prices in the southern neighbor directly affects cement prices in Nepal. Nepal is a huge importer of readymade Indian cement and clinker.

According to the association, annual demand for cement in Nepal hovers around 3 million tons. Nepali companies meet around 25 percent of the demand.

However, the association said that the Nepali companies have lately increased their production capacity and around half a dozen of new cement industries have been established lately.

source: republica, 6 August 2012