The Biden Administration's push for infrastructure could be stifled by skyrocketing steel prices, as domestic production idles and Trump-era tariffs preclude cheap imports from entering the US, according to a new analysis from S&P Global Market Intelligence.
While steel companies have ramped up and recovered from early pandemic-era production cuts, analysts told S&P Global that domestic supply is simply not keeping up with demand, pushing the price of steel on an upward trajectory since September 2020. Share prices of major steel companies are also trading at more than 200% higher than their prices a year ago, the firm's analysts say.
The 25% tariffs on steel imports put into place in 2018 are partly to blame, says Ronald Cecil, principal Market Intelligence iron ore and steel analyst.
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