Iron & Steel News0
Iron & steel industry is a largtest construction material manufecturing industry,provides large numbers of eploymoyment oppertunities in Nepal.This industry produce mainly
iron rods,TMT bar ,wire rods,galvanised sheets,roofings sheets,GI wires,nails,nutbolts,steel pipes,GI pipes,gavion wires,wire mesh, & metal products.
Raw materials : ,like billet,wire rods,HR sheets ,CR sheets are mainly imported from India.
According to prducers demand is 200000 MT permonth,domestic industr can meet by 70%
“Construction works — from houses to big projects — have picked up significantly across the country at present which has swelled the demand for construction materials, including that of iron and steel,” said Dhurba Kumar Shrestha, former president of Nepal Steel Rolling Mills Association (NSRMA), adding that a large number of steel and rods was imported in the market from India following production constraint from domestic manufacturers due to rise in load-shedding.
|Four months’ data|
|2015-2016||Rs 13.03 billion||Rs 1.1 billion|
|2016-2017||Rs 29.63 billion||Rs 1.2 billion|
Domestic manufacturers have also said that the current surge in import is of temporary nature and would come down once reconstruction works of houses, heritages and projects affected by the earthquake last year draws to an end.
“The demand for construction materials suddenly skyrocketed after the government lifted ban on construction of new buildings and houses that was imposed after the earthquake,” said Kiran Sakhwa, vice president of NSRMA, adding that the market share of Indian iron and steel has gone up following excessive demand. Otherwise, Sakha said that domestic production is sufficient to meet the normal demand of the commodities.
There are 16 iron and steel mills operating in the country. According to Sakha, the annual domestic demand of iron and steels is around 700,000 metric tonnes and domestic manufacturers are able to meet this demand.
“Manufacturers can now run their factories in full-fledged manner as the government has reduced the power cut drastically. This will directly increase our production and contribute towards substituting imports from India,” Sakha said.
According to entrepreneurs, the demand for iron and steel is increasing by 20 per cent annually.
PROBLEMS & CHALLENGES :There are many problems in this industry .politicals inestability & intereferences ,iregular & low quality Power supply ,lack of skilled manpowers,strikes,old technology,transportation problems .our industry couldnot comepete in pricing with Indian industry,due to tax subisdy on imports on raw materials & export of finished materials like in India.The cost of productions is less in India due to tax subsidy & large scale productions.Industry should have productions friendly labour act & propers supply of raw materials.
Quality & developments:Nepali producers are accepting advance technology .only plains bar was produced before,Now TMT bar being produced in 500 grade through water pressure & thermomechanically treated.TOR steel of 415 grade was widely used in Nepal ,some years ago.now it is widely used 500 grade.Big consstruction projects & hydro power projects need 32 mm iron rod,These rods are imported from India by big constructions company.
Nepal can make 30-40 mm iron rods ,if the actual demands & time is fixed.