Steel prices to shoot up

Kathmandu, May 12:

Steel and iron prices in the local markets are going to shoot up by about Rs 10 per kg, due to India’s decision of imposing five to 15 per cent export tax.

Indian finance minister P Chidambaram today announced a series of measures to cool down the surge in steel prices by imposing export tax on steel in the range of five to 15 per cent.

According to today’s notification of the Indian finance ministry, India has imposed export tax on all major raw materials including 15 per cent on hot rolled (HR), 10 per cent on cold rolled and tubes as well as five per cent on hot dip galvanised (HDG) iron.

“The new export tax will increase the prices of steel and iron raw materials by about $160 per metric tonne,” Kiran Prakash Saakha of Saakha Iron and Steel Industry, said, adding that the price per kg of iron and steel would shoot up by Rs 10.

According to him, Nepal imports steel and iron raw materials at an average rate of $900 per metric tonne. “The option for the Nepali industries would be seeking special preferences on imports from India or find new import partner,” he said, adding that otherwise the price surge would be passed on to the customers.

Meanwhile, India has announced duty cuts on raw and finished materials, citing that steel prices contribute over 21 per cent in the inflation rate and with a view to controlling prices exports would be dis-incentivised with levy of export duty. India has also abolished countervailing duty on re-bar imports.

The price of construction materials have seen a rise hitting the construction in the recent days.