How to start a lucrative Iron rod Business in Nigeria

Iron rods are a fundamental component in the construction industry in Nigeria. They are used in building structures such as homes, offices, and bridges. Their strength and durability make them ideal for reinforcing concrete, ensuring the stability and longevity of the structures.

Iron rods are used in the construction business sector to build factories, residential homes, industries, commercial outlets, markets buildings and large worship centers. It is a major equipment in the real estate sector that cannot be downplayed due to the major works it is used for in casting, erecting and in correcting structural defects of buildings in Nigeria.

Get a Warehouse: Your warehouse for storing the iron rods should be accessible to your customers. It should be large enough to store your iron rods. Locate your warehouse where people can see it.

Purchase Iron Rods

Now it is time to buy the rods and fill your warehouse. It is better to buy from the companies that produce the steel in large quantities. However you can still buy from other places in large quantities.

25mm rods- a length is around N7000, 20mm rods- costs round N8000 for each length,16mm rods- is around N4000 for a length, among others.

Join Partnership with Steel Making Company

Go to suppliers and major producers of indigenous steel making companies and partner with them to enable you buy from them at a fair price if the steelmaking companies are not close to you. This will enable you to cut down on cost and risk of buying substandard equipment and tools

Locate Real Estate & Devt Expert Sometimes your clients may not have to locate your warehouse before they buy from you, you have to go out and meet them. Your potential clients are mostly industrialist, realtors and property development experts in the Construction sector. Find out where they are and sell your service offerings to them.

Marketing

You may have to get someone who is honest and accountable to stay in your warehouse as the storekeeper or you are the person staying.

Bring out the rods to be visible to those passing by. You can start a website where you talk about your iron rods and how you supply them.

You may buy a truck for moving these rods to your clients when they ask it. However you can hire if you don’t have a truck yet, but you will always need a vehicle for moving the rods to site or elsewhere.

Irons of 16mm and lesser in diameter are more common in the market and are in more demand because of their common use.

Promptness in supply

This is crucial in this iron rod supply business. Ensure that the products get to the clients on time. Remember to buy safety kits and equipments. Maintain the vehicles and service them to be ready to supply.

Prospects

Iron rod supply business is one of the businesses you can do in Nigeria that will flourish because it entails everything responsible for construction business. It is capital intensive and largely profitable. You need a business guide to overcome the risk and expected losses in the business.

Starting this business is really not difficult at all and anyone can do it. Likewise other worthy businesses, steel rods supply business has good returns on investment. For instance, one length of 16mm – Iron Rod could be sold at about N3, 000 retail price. If you buy it at N120,000 per tonne and get 52 pieces, you will get N36,000 profit after selling them off. The returns could be much higher or lower depending on how much you buy.

There are different prices of iron in the market. At the same time, the price for imported is not the same with Nigerian made. The breakdown above is to furnish you with idea of what the profit in the business looks like. Ensure that YOUR target will always be to get product at the best price possible, Going directly to the steel companies to buy would be considered more profitable.

Iron rod and steel selling business

Sample Price Estimates of Iron and SteelRods in The Nigerian Market Today

Some of the available Irons in the market and their estimated prices listed below:

25mm – About N7, 000 per length. 21 pieces make a tonne. It cost N120,000 per tonne

20mm – About N4,000 per length. 33 pieces make a tome. N120,000 per tonne

16mm – Around N2, 200 per length. 52 pieces N120,000 per tonne

12mm – About N1, 200 per length. 93 pieces. N120,000 per tonne

10mm – Cost around N1,200 per length. 133 pieces. N120,000 per tonne

8mm – N700 per length. You get 210 pieces per tonne at N120,000 per tonne.

Exchange rates

Exchange rates also play an important role in determining the price of iron rods in Nigeria. Since iron is often imported, a weaker Nigerian Naira against the US Dollar or other major currencies can make imports more expensive, leading to higher prices for iron rods.

Level of competition in the market

Lastly, the level of competition in the market can influence the price of iron rods. In a market with many suppliers, competition can drive prices down. However, in a market with few suppliers, or the case of a monopoly, prices can be higher as suppliers have more control over pricing.

To understand the number of iron rods in a ton, it’s important to first comprehend the weight of a single iron rod. The weight of an iron rod can vary depending on its length and diameter. Commonly used iron rods for construction in Nigeria are typically 12 meters in length and come in various diameters such as 8mm, 10mm, 12mm, 16mm, 20mm, and 25mm.

The weight of an iron rod can be calculated using the formula: Weight = Volume x Density. Here, the volume is the cross-sectional area of the rod (πr², where r is the radius) multiplied by its length, and the density of iron is approximately 7.85 g/cm³. For example, a 12-meter iron rod with a diameter of 16mm would weigh around 14.13 kg.

Once we know the weight of a single rod, we can determine the number of rods in a ton. A metric ton is equivalent to 1,000 kilograms. So, if a 16mm diameter rod weighs 14.13 kg, then approximately 71 rods of this size would make up a metric ton.

Cost of production: One of the major determinants is the cost of production. This includes the cost of raw materials, labor, and energy required to produce the iron rods. If these costs increase, manufacturers may pass on the additional expenses to consumers in the form of higher prices. Similarly, if production costs decrease, manufacturers may be able to reduce prices.

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