US steel groups praise House passage of infrastructure bill

US steel industry groups are applauding the House of Representative's passage of a $1 trillion bipartisan infrastructure bill, seen as a boost for domestic steel demand, and are encouraging President Joe Biden to sign off on the legislation as soon as possible.

"Funding roads and bridges, ports and waterways, water infrastructure, the electric grid and investing in electric vehicle systems, all will require a lot of steel — and our industry is ready to provide that steel," Kevin Dempsey, CEO of the American Iron and Steel Association, said in a statement.

It's been a long road to get the bipartisan infrastructure bill over the finish line, with the House voting to pass the legislation late in the evening of Nov. 5 by a vote of 288-206 largely along party lines — with 13 Republicans joining Democrats to vote in favor of the bill. The Senate previously passed the Infrastructure Investment and Jobs Act Aug. 10.

Among the steel-intensive funding in the legislation are $100 billion for roads, bridges, and major projects, $66 billion for passenger and freight rail, $39 billion for public transit, and $7.5 billion for electric vehicles.

The AISI estimates that for every $100 billion of new investment in infrastructure it could increase demand for domestic steel by as much as 5 million st. The Steel Manufacturers Association shared a similar estimate, stating that every $100 billion of investment can incrementally increase steel demand by 4 million st to 6 million st.

Passage of the bill provides a "tremendous boost" to the US steel industry, Dempsey said.

"We applaud the bill because it focuses on steel-intensive, traditional infrastructure," Philip Bell, president of the SMA said in a statement. "Having modern, efficient and safe roads, bridges, seaports, airports, waterways, and energy distribution systems is essential to keep the wheels of commerce turning."

The United Steelworkers praised the bill for including provisions to encourage steel used in federal-funded projects to be melted and poured in the US.

"Robust investment, coupled with strong domestic procurement provisions, will help American workers, including hundreds of thousands of USW members, not only by making their communities safer but by promoting widespread job growth and economic opportunity," USW president Tom Conway said in a statement.

SMA's Bell also commended the bill for including elements that emphasize sustainable steelmaking and green energy, along with domestic procurement preferences.

"This helps ensure that the steel used to improve our nation's economic competitiveness will be made by Americans and for Americans," Bell said. "SMA members produce steel with the lowest carbon intensity in the world. We are poised to help our country build back better with the cleanest steel available."