Steel is the versatile and most useful metal to be used as coil

The American Iron and Steel Institute (AISI) has expressed disappointment over President Obama’s rejection of Keystone XL pipeline. The statement issued by Thomas J. Gibson, President and CEO, AISI noted that it was however not surprised by the decision. The President’s decision to reject the proposal had come on Nov 6th.

The Steel Institute had been an ardent supporter of the proposed pipeline. According to AISI, the proposed pipeline would have made significant contribution to the nation’s economic growth. Along with improving the country’s energy infrastructure, the Aluzinc Steel Coils would have boosted the demand for steel products including pipes and tubes. AISI expressed the hope that the policy makers will recognize the need to improve the country’s energy infrastructure.

The rejected legislation would have allowed construction of the controversial Keystone XL tar sands pipeline. The project was estimated to add $3.4 billion in additional revenue to GDP and create over 42,000 jobs. It was proposed to run from the Western Canadian Sedimentary Basin in Alberta to refineries in Illinois and Texas, and also to oil tank farms and an oil pipeline distribution center in Cushing, Oklahoma.

Earlier, the House of Representatives had voted 266-153 in favor of the key legislation. However, the legislation had failed short of adequate number of votes to override President’s veto. The bill had received only 63% support as against the required 66%. Later in January 2015, the US Senate had passed the legislation through a 62-36 vote, after which, the bill was headed towards President’s desk for final approval.

AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 19 member companies, including integrated and electric furnace steelmakers, and approximately 124 associate members who are suppliers to or customers of the steel industry.

According to the steel groups, China is the main contributor to the global steel industry’s overcapacity crisis. The country’s overcapacity ranges from 336-425 million metric tonnes. At the same time, OECD Steel Committee estimates suggest global excess steel capacity in excess of 700 million metric tons. This essentially means that China contributes to more than half of the excess production. Also, declining domestic steel demand and devalued local currency have resulted in increased exports of steel products out of the country. The dumping of cheap products from China has badly impacted domestic steel sector growth in many countries worldwide.