b'JULY 26 -AUGUST 22, 2021BREAKBULK QUARTERLY 9US infrastructure spending should boost steel demandThetrilliondollarinfrastructureplancouldstimulatedemand for 50 million tons. But it would also add complexity to a volatile global demand and pricing picture.By Peter Buxbaum, AJOTItsnotquiteaslamto reach 2019 levels in 2022,of government infrastructure dunk,butrecentdevelop- according to Worldsteel. Theinvestments. mentsinWashington,D.C.,Bidenadministrationsinfra- The company also reported point toward the passage of astructureinvestmentsmaythatmarketimprovements nationalinfrastructurepack- have upside potential for steelinNorthAmericawereup age in the coming weeks. In ademandinthelongerterm,7%inthefirstquarterof deal struck between Presidentsaid Al Remeithi.2021duetopositivecus-JoeBidenandabipartisanCompanieslikeVolvotomer sentiment from expected group of Senators, CongressConstructionEquipmentaregovernmentinfrastructure willconsidera$1.2trillionalreadyexperiencingrobustinvestments,althoughthat infrastructure plan focused onyear-over-year sales increases,figurewasanemiccompared traditional projects like roadswith first-quarter sales up 23%to growth in some other global and bridges, as well as ruraland orders up 73% comparedregions.OxfordEconom-broadband internet access, astolastyear.Thecompanyicsanticipatesgrowthinthe a first step toward taking upattributedthoseincreasestoU.S.constructionmachinery a second bill that would passdemand in China which was(BOOSTcontinued on with Democratic votes only.particularlystrongbecausepage 10)On July 13, Senate Dem-ocrats revealed a framework forthesecondbill,which would pour $3.5 trillion over ten years into climate change initiatives,Medicareexpan-sion, education benefits, and family-service programs. The first measure received a boost in early July when it received theendorsementofabipar- LINER SERVICE tisangroupintheHouseof Representatives.50 M illionT onS ofS TeelBETWEEN EUROPE AND One-trilliondollarsin infrastructurespendingwould stimulate demand for about 50 THE GREAT LAKESmillion tons of steel, according toFastmarkets,acommodi-ties data provider. The second bills climate provisions, which reportedly include energy effi-ciencyandweatherresiliency measures,couldalsoaddto steel demand. Theprospectofmassive infrastructurespendingis partly responsible for a surge insteelprices.Futurescon-tracts for hot-rolled coil steel, akeyinputforconstruction andautomobiles,rosetoan all-time high of $1,800 per ton rightafterBidenannounced thebipartisaninfrastructure deal, reflecting an expectation ofincreaseddemand.Steel pricesarealsobeinginflu-encedbytheimporttariffs introduced during the Trump administration.Bidenfaces conflictingconsiderationsThe first and only year-over what to do about Trump-era trade restrictions on steel. round liner service between WorldsteelhasprojectedEurope and the Great lakesglobal growth in steel demand of 5.8% this year and another 2.7%in2022.GovernmentQuick transit time | Through bills of lading | Onward connections using recoveryprograms,espe- Spliethoffs European and American logistic network | Line-cially in the U.S. and China,supplied containers, project, heavy lift, steel, forest products and bulk| will account for much of theCalling various Great Lake ports, including: forecastedgrowth,according- Valleyfield QU - Cleveland OH - Duluth MNto Saeed Al Remeithi, chair- - Rameys Bend ON - Chicago IL - Monroe MImanoftheWorldsteeleco- www.spliethoff.com or [email protected] nomicscommittee.Demand willbeaidedbyastrong recovery in auto manufactur-ing,whereproductionlevels in 2021 are expected to exceed 2019 levels, and global con-struction,whichisexpected'