Biden calls on lawmakers to reach bipartisan infrastructure agreement

Pittsburgh — US President Joe Biden met with a bipartisan group of lawmakers Feb. 11 to discuss the US need to invest in infrastructure, with Biden urging the two parties to come together to reach a long-sought deal to modernize and improve infrastructure in the US.

"I've been around long enough...that it used to be that infrastructure wasn't a Democrat or Republican issue," Biden said ahead of the meeting, according to a White House transcript.

Attendees at the Oval Office meeting included Vice President Kamala Harris, a bipartisan group of Senators from the Environment and Public Works (EPW) Committee, and Transportation Secretary Pete Buttigieg, according to the White House.

The meeting is one of several the administration plans to conduct on infrastructure with members of Congress and stakeholders, it said.

Following a two-hour conversation with Chinese President Xi Jinping Feb. 10, Biden said the US risks falling behind if investments in infrastructure are not made.

"If we don't get moving, they're going to eat our lunch," Biden said about China. "They have major, major new initiatives on rail. And they already have rail that goes 225 miles an hour with ease. They're working — they're working very hard to do what I think we're going to have to do."

The US steel industry has long been an advocate for increased federal spending for infrastructure. In its most recent infrastructure report card issued in 2017, the American Society of Civil Engineers issued a D+ grade for US infrastructure, on par with results in 2013, the last time ASCE issued its assessment. The report, which is updated every four years, provides a review of the nation's 16 major infrastructure categories and rates each based on investment, capacity and the need for projects to be completed.

The direct impact on steel demand will depend heavily on what types of projects are pursued in any potential infrastructure package.

Speaking at the Tampa Steel Conference Feb. 2, Timna Tanners, managing director of equity research for the metals and mining sectors for Bank of America, said she expects steel demand in 2021 to be bearish in the oil and gas and non-residential construction markets, even with talks of large infrastructure spending occurring under Biden.

"We think infrastructure stimulus is going to be less materials intensive," Tanners said, adding that such spending may be focused instead on clean energy initiatives.

Conversely, American Iron and Steel Institute CEO Kevin Dempsey said he was bullish on the prospects of infrastructure spending for the steel industry.

"A major infrastructure bill will help boost overall spending in the construction sector, will boost the economy and will be good for steel," he said.