International Steel Prices

CRU: The American Jobs Plan – What Does it Mean for Metals Demand?

April 29, 2021

By CRU’s Economics Team

The Biden administration has recently announced a $2.2 trillion American Jobs Plan (AJP) spending package, which includes around $1 trillion of spending on infrastructure. In this slidepack, we set out what this could mean for metals demand and the wider U.S. economy.

Our analysis suggests that the AJP could boost demand for steel and copper by around 5% over a five-year period, and aluminium by around 1.6%. However, the exact impact will depend on the details of the spending, which will take time to become clear.

The impact of the AJP on the U.S. economy as a whole will be more modest. Unlike the recent stimulus packages, the spending will be spread over a number of years and financed mainly through tax increases–although this may change during political negotiations.

Click here to view the presentation from the CRU Economics team.

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