SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/0a839ae26b22fcd1393db6c7e4cc653c.jpg)
SMU Market Trends: Mixed Reaction to Infrastructure Bill
Written by Tim Triplett
August 19, 2021
Roughly half of the steel executives responding to Steel Market Update’s market trends questionnaire this week believe the infrastructure legislation now working its way through Congress will have a significant impact on steel demand in the next year or two. The other half are unsure if the two parties in Washington can reach agreement even on such a feel-good issue as fixing the nation’s crumbling roads and bridges.
The Senate passed a $1-trillion infrastructure bill last week that included $550 billion in new federal spending. Of that amount, $110 billion is for highways, $25 billion for airports and $65 billion for high-speed internet access. The House is now considering a similar measure.
Most survey respondents agree the biggest impact will not be felt among producers and distributors of sheet products. Long products, such as rebar, as well as plate and beams, are expected to see the greatest benefit. Any real boost to the steel market is probably a few years away, they said, after projects are planned and bid – assuming the House and Senate can even agree on new funding.
Here’s What Some of Them Had to Say:
“Without a doubt, it’ll be a nice boon. Obviously, for some sectors more than others. But anyone tied into construction equipment or rental companies will have a very fun run.”
“It certainly won’t hurt the market.”
“This will be more help to structural products than flat rolled.”
“Most impact will be seen for long products, which have been running at well under mill capacity levels.”
“Planning for this will take years, and governments – state and federal – don’t move fast. Engineers alone will take many months to plan and get approved way before implementation.”
“It will only kick-in in earnest in three years’ time. If infrastructure focuses heavily on renewables, such as solar, that could be a positive for flat rolled.”
“Most of the new demand will be for plate or shapes, and there is plenty of capacity to handle that. Flat-rolled will be minimal. And there will be no impact until 2023 when most of it is needed.”
“There’s quite a bit of apprehension among long products mills regarding potential infrastructure-related demand, but it doesn’t seem to be impacting flat products mills at this time.”
“Obviously steel shortages will continue if this package passes.”
“The reported 3% increase in steel demand from the infrastructure package does not seem significant to me.”
“Actually, I don’t think it will pass the House.”
“Not sure if it will ever get through Congress. We’ll cross that bridge (no pun intended) when we get to it.”
By Tim Triplett, Tim@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/tim-triplett.jpeg)
Tim Triplett
Read more from Tim TriplettLatest in SMU Data and Models
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
Steelmaking raw material prices ease in July
The majority of steelmaking raw material prices declined in June, following the same trend seen in May, according to SMU’s latest analysis.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU price ranges: HR declines moderate. Are we near a bottom?
SMU’s sheet price ranges slid again this week. But the declines were more pronounced on tandem products whereas prices for hot-rolled coil held roughly steady.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
Some SMU Key Market Indicators improve, others remain near historic lows
SMU’s Key Market Indicators include data on the economy, raw materials, manufacturing, construction, and steel sheet and long products. They offer a snapshot of current sentiment and the near-term expected trajectory of the economy. All told, nine key indicators point lower, 16 are neutral, and 13 point higher. One thing worth noting: The nine indicators pointing lower are all lagging indicators. Many of those pointing upward are leading indicators.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU survey: Steel Buyers’ Sentiment Indices rebound
SMU’s Steel Buyers’ Sentiment Indices both saw improvement this week. Current sentiment ticked higher but remains near the four-year low seen earlier this month. Future Sentiment continues to indicate that buyers are optimistic for future business conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Premium1.png)
SMU market survey results now available
The latest SMU market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Historical survey results are also available under that selection. If you need help accessing the survey results, or if your […]