International Steel Prices
CRU: The American Jobs Plan – What Does it Mean for Metals Demand?
Written by CRU Americas
April 29, 2021
By CRU’s Economics Team
The Biden administration has recently announced a $2.2 trillion American Jobs Plan (AJP) spending package, which includes around $1 trillion of spending on infrastructure. In this slidepack, we set out what this could mean for metals demand and the wider U.S. economy.
Our analysis suggests that the AJP could boost demand for steel and copper by around 5% over a five-year period, and aluminium by around 1.6%. However, the exact impact will depend on the details of the spending, which will take time to become clear.
The impact of the AJP on the U.S. economy as a whole will be more modest. Unlike the recent stimulus packages, the spending will be spread over a number of years and financed mainly through tax increases–although this may change during political negotiations.
Click here to view the presentation from the CRU Economics team.
Request more information about this topic.
Learn more about CRU’s services at www.crugroup.com
CRU Americas
Read more from CRU AmericasLatest in International Steel Prices
Gap between US HR and landed import prices starts to narrow
The price gap between stateside hot band and landed offshore product narrowed this week. Still, with the 50% Section 232 tariff, most imports remain much more expensive than domestic material.
Little change in price gap between US HR, imports
SMU’s average price for domestic hot-rolled (HR) coil held at $785 per short ton (st) this week, unchanged week on week (w/w). A similar dynamic was seen in offshore markets last week as well.
Price gap between US CR, most imports narrows
Cold-rolled (CR) coil prices ticked up in the US this week, matching a similar trend seen in offshore markets as well.
Domestic HR and offshore import prices continue to diverge
With only a modest decline in US prices, HR imports, on a landed basis, remain much more expensive than domestic hot band.
Price gap between US CR, most imports widens
Cold-rolled (CR) coil prices ticked lower in the US this week, while prices in offshore markets mostly diverged and ticked higher.