US steel industry expects to benefit from infrastructure investment

Kevin Dempsey, interim president and chief executive officer of the American Iron and Steel Institute (AISI), said the steel industry is likely to benefit if the new administration, under President-elect Joe Biden, decides to prioritize spending on infrastructure projects. He added that the infrastructure investment plan has bipartisan support along with trade enforcement measures.

The first meeting of the 117th US Congress is scheduled for January 3, 2021. The House of Representatives is likely to consider a major infrastructure bill in February itself. The bill is likely to focus on traditional initiatives such as roads and bridges.

AISI notes that the passage of the steel-intensive infrastructure law will improve the prospects for the entire steel industry. He called for expanding Buy America requirements from federal-funded infrastructure projects, from roads and bridges to other projects.

Dempsey said the administration's pending overhaul of Trump's tariffs gives the steel industry an opportunity to justify maintaining 232 tariffs. He rejected arguments for increasing imports due to long delivery times and high prices for some steel products. The Biden administration, in consultation with its traditional allies, must find a solution to the problem of global overcapacity, mainly in China.