In the U.S., Reuters commented on the decrees signed by trump
9 February 2017
Authoritative analytical Internet Agency dispelled the joy of metallurgists. Earlier, many had hoped that a series of decrees signed by trump, will be able to restore the metallurgical industry of the country. However, according to Reuters, this will not happen. The Agency reports that the resumption of work on the project, Keystone will not lead to large orders. Since, most of the materials for the project have already been previously purchased.
Thus, the main profit from the purchased products, received the Russian, Chinese and Indian companies.
The total cost of Keystone is estimated at approximately eight billion dollars. Of this amount, more than half received a foreign company, put the main part of the pipe.
Factories of foreign companies located in North America. The largest supplier was the company Welspun located in Arkansas. Its headquarters are located in India. Approximately a quarter of purchased pipes from a canadian plant owned by Russian. Other products were imported from Italy and India.
Experts do not deny that after a long stay in the open air some pipes need to be replaced. However, Reuters denied the possibility of a significant effect of this fact on the metallurgical market.
Moreover, Internet Agency, talking about the possible financial losses of American steel companies abroad. It is connected with the decree, which refers to the procurement for Keystone exclusively from American factories. And this, contrary to the basic rules of the world trade organization.
In addition, at present, it remains in force the North American free trade agreement. And decrees trump pipelines do not meet his standards.
But even this is not the Agency believes the main challenge to benefit the American metallurgists. In Reuters are confident that during the crisis of the industry, companies have forgotten how to make a quality product. According to the forecast, the orders for the project will be foreign companies with factories in the United States. Because the largest American companies not able to produce the pipes required for the project characteristics. Most likely, orders will receive the Russian Evraz, Indian JSW and Welspun. Because only these plants are the technology of production for this type of projects like Keystone.
