Metals market to benefit from US infrastructure bill

16 August 2021

The metals market is set to benefit from President Biden’s signature $1 trillion infrastructure bill that will invest in everything from roads and bridges to electric cars and power systems across the US.

Investor education firm NTree International said the approval of the bill marked good news for metals such as copper, nickel and silver which will be instrumental in achieving the US’s President’s plan.

Key elements of the new bill include modernising 20,000 miles of highways, roads and main streets, fixing bridges, replacing or repairing buses, rail cars, stations and thousands of miles of track, signals and power systems. In addition, the US will develop and roll out electric vehicles and charging networks, including building half a million EV chargers by 2040 and replacing 50,000 diesel transit vehicles.

Replacing lead pipes and service lines, investing in the electric grid network and rolling out high-speed broadband across the country are also part of the new bill.

Hamad Ebrahim, head of research at NTree International, said: “The approval of Biden’s infrastructure plan is good news for those investing in metals, with copper and nickel required in huge quantities as power systems and vehicle fleets are upgraded and electrified.”

Copper will be one of the leading beneficiaries of Biden’s US infrastructure bill, with the annual increase in demand for infrastructure-driven refined copper over the next five years expected to grow 2% per year.

NTree International said both copper and nickel will be boosted by the government’s electrification spending and replacement of combustion-powdered federal fleets with electric battery-powered fleets.

According to NTree International,  nickel demand from replacing the entire federal fleet is expected to reach around 55kt.

Silver will also see increased demand as a result of the bill’s commitment to roll out high-speed internet, 5G and IoT connectivity.

Ebrahim added: “The US infrastructure bill is expected to increase productivity and while estimates may vary, a 2014 University of Maryland study found that every $1 of infrastructure investment adds as much as $3 to GDP growth.”

[Main image: scottsdale-mint-unsplash]

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