Displaying items by tag: Cement Manufacturer's Association Nepal

Nepal: Dhruba Raj Thapa, president of Cement Manufacturer Association of Nepal (CMAN), has warned that the industry is worried about new investments in cement production given that the country has become self sufficient in the commodity. Clinker imports have stopped due to increased domestic production, according to the Republica newspaper. He added that cement produced locally is sufficient to meet local demand until 2029. He then warned that if investment in the sector continues producers might have to reduce their production capacity by half.

Data from the Department of Industries shows that 114 cement factories, both government-owned and private, have been registered so far with an estimated investment of over US$1.8bn. However, Tara Prasad Pokharel, the general secretary of CMAN, said that only 68 registered industries are currently in operation.

Nepal: Cement producers have suggested that consumers wait for cement prices to fall before they build new homes. Bishnu Prasd Neupane, managing director of Jagadamba Cement, made the comment at a forum organised and reported upon by Nepal Republic Media. He said that end users could benefit from the fall in the international price of crude oil. A drop in fuel prices is expected to cut transport and production costs. Overall, the price of construction materials could drop by 20%.

Tara Prasad Pokharel, general secretary of Cement Manufacturer's Association Nepal (CMAN), asked customers not to pay more than a transportation cost of more than US$1.4/bag or more than 20% dealer costs on top of factory prices. The retail price of cement has increased by more than 50% due to high transportation costs caused by fuels shortages.

"The price of diesel is expected to come down to US$0.55/litre from US$0.69/litre. It will obviously lower our cost of production," said Pashupati Murarka, promoter of Arghakhanchi Cement and also the president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Use of diesel-run generators increases the price of cement by around US$0.74/bag at current oil prices. Use of the country's national grid increases is also expected to cut the cost of production significantly.