Tulachermet can fall the victim of the shale revolution in the United States

The shale revolution in the United States allows local metallurgical companies to increase the production of steel using the technology of direct restoration of iron DRI, abandoning imported cast iron.

Last year, Russian metallurgical enterprises exported in the United States about 4 million 500 thousand tons of red -hot cast iron of which about half were delivered by Tulachermet OJSC. The drop in exports in 2013 will be, according to experts, 17 percent or 1 million tons, up to 3 million 500 thousand tons, and in 2014 the United States import less than 3 million tons of cast iron from Russia.

The reduction in consumption by American metallurgists of Russian cast iron extremely negatively affects the financial condition of Tulachermet. According to the results of the six months of 2013, the company announced a decrease in sales of its products in the foreign market and the incurred losses instead of the profit expected.

Further reduction in sales can lead to a partial stop of the enterprise and reduce part of the personnel. True, so far there have been no official statements from management Tulachermet.

Recall that steel production using DRI technology in the United States over the past year has almost doubled to 2 million 600 thousand tons, and in 2013 an increase of another 50 percent is predicted, up to 4 million 500 thousand tons.