The federal government imposes new requirements on infrastructure projects that will prioritize domestic manufacturing, and the U.S. steel industry is poised to see an increase in demand.
Beginning May 14, the Biden administration will require all federally funded infrastructure projects to be built with iron and steel made in the United States.
In April, the White House issued separate guidance on the new Buy America requirements. The guidance also said that these requirements can be waived if the purchase would be inconsistent with the public interest, if the materials needed aren't produced in sufficient and reasonably available quantities or of a satisfactory quality, or if U.S. materials increase a project's cost by more than 25%.
A provision of the $1 trillion, bipartisan infrastructure plan signed into law in November could be a welcome boost to the American steel industry.
The American Iron and Steel Institute AISA applauded the Buy America guidance and praised the Biden administration's commitment to ensuring all federally-funded infrastructure and public works projects use iron, steel and other products made in America. Todd Leebow, CEO of Ohio-based steel distributor Majestic Steel USA, told Fox Business that the company is ready to deliver on Biden's domestic steel mandate.
There is a need for value in the supply chain and domestic production and distribution, according to Leebow.