Huge support rendered by US Infrastructure package in 2021.

Joe Biden announced a $2 trillion infrastructure package bolstering the much-needed revamp in US across ports, roads, etc. This will translate into a huge support to US and world economy

As per the observations and trends, the spent by US in last many years out of their budget in Infrastructure has been low and with the rise of china as an infrastructure and a manufacturing hub of the world, US turn was long awaited.

This was taken up by current US President, Joe Biden on 31’st Mar’21.

This is significantly positive for steel which is a ferrous metal. It is estimated that for every billion-dollar spent on infrastructure, proportionate requirement for steel is 50,000 ton.

Also looking at the current unemployment levels, infrastructure package also addresses it. Every trillion-dollar spent on infrastructure ends up creating 11 million jobs.

Going by the announcements, there will be a greater focus on energy and electrification too and it will be hugely positive for Nickel, Copper, Silver, etc.

Some of the plans are for 500 thousand new charging stations and similar number for conversion of school buses to zero emission. This will alone require close to 200 thousand tons of copper. Also, renewable sources of energy require an estimated 5 times more copper than conventional sources.

All in all, positive for base metals and steel.