12-11-2021 US passes USD 1 trillion infrastructure bill set to significantly boost domestic demand for steel, Maersk Brokers
President Joe Biden will sign off the largest federal investment infrastructure bill in more than a decade this Monday. The bill would raise USD 1 trillion to be spent on roads, bridges, ports, rail transit, safe water, the power grid, broadband internet and more. The American Iron and Steel Institute (AISI) has expressed a positive outlook as the bill moves to upgrade existing infrastructure and expand infrastructure capacity to much needed areas. Among the steel-intensive funding in the legislation; USD 100 billion is for roads, bridges, and major projects, USD 66 billion for passengers and freight rail, USD 39 billion for public transit and USD 7.5 billion for electric vehicles. The AISI estimates that for every USD 100 billion of new investment in infrastructure, it could increase demand for steel by as much as 4.5 MMT. Other steel organizations have shared a similar figure. Notably, the bill stipulates provisions to encourage steel used in federal-funded projects to be melted and poured in the US. The Biden administration has stated that the bill would boost domestic industries and create millions of jobs in the US.