Could the infrastructure bill add roughly 45 million tons of steel to the market over the next five years? Which sectors will see the most influx of activity because of the infrastructure bill? Will the infrastructure bill ultimately help or hinder steel consumption rates?

These are just some of the questions on the collective minds of the market when it comes to the Infrastructure Investment and Jobs Act, which was signed into law by President Joe Biden on Nov. 15, 2021. 

Looking for answers on these questions and more, we sat down with Ben Pickett, General Manager & Counsel - Public Affairs & Government Relations with Nucor, to discuss.  

In addition to his role at Nucor, Ben serves on the International Trade Policy Committee of the National Association of Manufacturers, the World Economic Committee of the World Steel Association, and on the Government Affairs Committee of the American Institute of Steel Construction. He is also currently Co-Chairman of the Rebar Trade Action Coalition and is a member of the North Carolina Chamber of Commerce Board of Directors.

What is the infrastructure bill?

What is the total spend allocated from the bill? Which sectors will see the most investment? In this clip, Pickett provides an overview of what is involved in the bill and which sectors could see the biggest benefit. 
 

 

Will the infrastructure bill help the steel industry?

By some estimates, the infrastructure bill could add 40-45 million tons of steel-intensive work to the market over the next five years (e.g., physical infrastructure projects). In addition, it could require another 20-25 million tons for non-steel-intensive work, which includes the manufacturing of equipment that will ultimately perform the work.

In this clip, Pickett provides more detail on the direct impact to the steel industry.

 

What might the infrastructure bill do to steel prices?

When thinking about the anticipated steel requirements of the infrastructure bill, Pickett outlines the impact on Nucor, and thus consumption rates. 

 

What industries will benefit from the infrastructure bill?

Of the roughly $284 billion planned for infrastructure investment, which projects will be prioritized? Pickett outlines the approach here:

 

And what is the potential impact on the market for electric vehicles and the supporting infrastructure?

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