Price of iron rods becomes expensive in Nepal
13th Sep, 2021 | Tourism Mail Crew
KATHMANDU, Sep 13: Due to the budget brought by the government through an ordinance, the price of iron rods has become expensive. According to the Nepal Steel Rolling Mills Association, the price of iron bars will go up as the government has increased customs duty and excise duty while importing billets.
According to the association, only six of the 30 small and large iron rod industries in the country are currently producing sheet metal rods. A statement issued by the association said that the customs duty on sponge iron mixed with petrochemicals would be levied at 0 percent but the customs duty on imported billets would be increased.
According to the association, this will create a situation where most of the pole industries will not be able to compete and will incur losses. The association said that zero tariffs on raw materials were against the policy of the World Trade Organization (WTO). Sponge iron and billet are both raw materials made from iron ore, according to the association. Sponge Iron has a tariff rate of 0 percent and billet has a tariff rate of 4.75 percent.
According to the association, there is a demand for world-renowned 500D grade iron rods, which are currently the most popular among consumers, and only 500D grade in accordance with international standards is required for large projects and projects of national pride. Therefore, when producing iron rods from sponge iron, the quality cannot be equal to 500D grade, only imported prime billet is required for that quality. According to the association, even though Nepal is a country of seismic risk, there is no minimum grade option for strong and quality construction.