Nepal construction material prices are climbing across the board, according to the latest official data from the National Statistics Office. The Input Price Index of Construction Materials for the third quarter of fiscal year 2082/83 shows bricks posting the sharpest annual increase in the entire basket, cement at its highest level in three years, and iron rod staging a strong quarterly rebound.
Bricks recorded the highest year-on-year increase of any material at 13.41 percent, with the index reaching 147.2, the highest level in the five-year dataset. The quarterly surge of 9.33 percent was also the steepest among all items. The report points to supply constraints in Nepal’s brick kiln sector combined with peak construction season demand as the main drivers.
Nepal construction material prices: cement and steel recover
Cement rose 5.04 percent quarter on quarter to reach 105.5, its highest level in three years. After a prolonged slump through fiscal years 2080/81 and 2081/82, when the index fell as low as 85.9, cement prices have recovered on stronger construction activity and tighter clinker supply.
Iron rod and billets bounced back 7.79 percent in the quarter to 125.8, recovering from multi-year lows. The year-on-year reading is still negative at minus 1.83 percent, which means prices are climbing back from depressed levels rather than hitting new highs. Firming steel markets in India and rising scrap prices are the key external drivers.
The most extreme annual move in the index came from electrical wire, up 24.89 percent year on year to 170.2, driven by the global copper price surge linked to energy transition demand.
What it means for builders
For anyone building now, the official data confirms what contractors have been warning: material inflation is back. FCAN has separately warned it may halt construction works if cement and steel price hikes persist, read our coverage at https://eve-construction.com/fcan-warns-construction-halt-price-hikes/. Our own monthly Kathmandu Valley tracker follows retail rates for rebar, cement, sand, aggregate, and bricks at https://eve-construction.com/material-prices/.
Source: National Statistics Office, Input Price Index of Construction Materials (IPICS), Q3 FY 2082/83.