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In November, President Biden signed the Infrastructure Investment and Jobs Act into law. Of $1.2 trillion in infrastructure spending provided by the bill, some $850 billion is for steel-containing infrastructure investment. The American Iron and Steel Institute (AISI) has estimated that for every $100 million in infrastructure investment, demand for domestic steel might rise as much as 5 million tons.
Given this backdrop, Wall Street analysts expect fundamentally solid steel stocks Ternium S.A. (TX) and United States Steel Corporation (X) to rally by more than 25% in price in the near term.
