U.S.-made steel must be used in infrastructure bill projects, Biden says (NYSE:CLF)

U.S.-made steel must be used in infrastructure bill projects, Biden says (NYSE:CLF)

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The Biden administration issued guidance to federal agencies on Monday requiring the material purchased for projects funded by the infrastructure spending package passed in 2021 must be produced within the U.S., while also setting up a process to waive the requirements in case there are not enough domestic producers or the material costs too much.

Agencies must ensure that all iron and steel products purchased for a project have been fully produced in the U.S. from the initial melting process to the final application of coatings, the guidance says.

Stocks of potentially related steel producers such as U.S. Steel (X), Cleveland-Cliffs (NYSE:CLF), Nucor (NUE), Commercial Metals (CMC) and Steel Dynamics (STLD) were little changed Monday by the announcement.

It is not clear what percentage of construction material for existing infrastructure projects is U.S.-made, even though the federal government already is spending $350B on construction this year; the new guidelines would enable government officials to know how many dollars go to U.S. workers and factories.

Cleveland-Cliffs (CLF) is increasing its share of fixed contracts with large suppliers, and booking effects have understated FY 2021 EBITDA, Valkyrie Trading Society writes in a bullish analysis posted recently on Seeking Alpha.

Originally Posted on: https://seekingalpha.com/news/3824098-us-made-steel-must-be-used-in-infrastructure-bill-projects-biden-says?source=feed_tag_commodities
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