Nepal’s one of the largest Cement maker – Sidhartha Group has entered into steel making business and has set up a new rolling mill with an annual installed capacity of about 250,000 MT pa. The mill is based in Sidharthanagar, Nepal with the name of Shree Steels Pvt Ltd.
Mr. Rajesh Kumar Agrawal, MD of Arghakhachi cement/Siddhartha group shared with SteelMint that “the trial productions of rebars/Billet had started since mid of Oct’18 and commercial production/sale is likely to be made by end of Nov’18”.
As per him, with the investment of INR 125 crore they have made to set up this fully automatic mill upto bundling and weighing with block mill of Japanese technology. Hence, it will be change the supply dynamic of finished steel in the country.
Company profile – Siddhartha Group is one of the largest private industrial and commercial establishments in Nepal. Group’s turnover has crossed to 1,500 cr.
Rising steel capacities in Nepal – Nepal’s other renowned steel makers have being raising their steel making facilities in line with growing steel demand following rapid constructions after the earthquake of 2015.
Recently to the media, Mr. Kiran Saakh, vice chairman of NSRMA (Nepal Steel Rolling Mills Association), said that the annual demand for iron and steel currently stood at around 2 MnT and domestic producers are supplying the required quantity in the market.
In Nov’16, he had also stated that, the market share of Indian iron and steel has gone up in Nepal following excessive demand. Otherwise, the domestic production in the country is sufficient to meet the normal demand of the commodities.
Another steel producer, Shalimar Steel recently expanded its production capacity to 25,000 MT with an investment of INR 500 million (INR 50 cr). Panchakanya Group is now capable of producing 100,000 MT of TMT steel bars annually by expanding its production capacity recently with an investment of INR 700 million (INR 70 cr).
Narayani Strips has been producing 150,000 tonnes of TMT bar annually and a new steel company in Birgunj is expected to come online within six months.
Nepal’s Billet imports on the upside – According to data maintained with SteelMint, Nepal imported 1.08 MnT Billet in CY17. So far in CY18 (till Oct’18) the figure has reached 0.99 MnT. Country’s Billet imports have moved up in line with increasing rolling steel capacities.
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