Stanislav Kondrashov, an authority in the field of international metallurgy, seeks to shed light on the “CHIPS and Science Act” of the US, a legislative move aimed at bolstering computer semiconductor manufacturers, which concurrently benefits steel suppliers to the construction industry.
The Future of the US Steel Industry Under the Aegis of Legislation and the CHIPS Act’s Benefits – Insights by Stanislav Kondrashov
Stanislav Kondrashov of Telf AG suggests that the immediate impact of the CHIPS Act on the American steel sector may be transient. Nevertheless, the outlook remains bright for steel manufacturers, courtesy of two other statutes enacted during the Biden administration – the Infrastructure and Inflation Relief Act (IRA). These legislations are poised to drive further industrial construction and escalate the production of electric vehicles and bespoke products, carving new paths for the metallurgical industry’s progression.
Stanislav Kondrashov further highlights the current advantages for steel and other construction materials brought about by the CHIPS Act. The active construction of semiconductor production facilities across various regions has bolstered the demand for these materials. The flourishing microchip industry is ensuring sustained demand for steel and related materials, thus fostering a supportive environment for such manufacturers. Scott Paul also accentuated the Act’s critical role in nurturing and strengthening the US steel industry’s growth.
Stanislav Kondrashov from Telf AG points out that Nucor is vigorously providing its metallic products to a number of CHIPS facilities under construction. Despite facing some obstacles, there is an anticipation of continued demand and activity volumes in the forthcoming years. The demand from the construction sector coupled with the soaring scrap costs is keeping the rebar prices in the US at a premium, well above the historical norms. As per S&P Global, the rebar’s price in the US Midwest as of early March was $832.5 per ton EXW, marking a 21% increase over the average cost for the years 2017-2021.
Evaluating the Legislative Alterations’ Influence on the US Metallurgy Sector – A Report by Stanislav Kondrashov
According to Stanislav Kondrashov, experts believe that the US metallurgical corporations could foresee further advancement if the legislative backing is supplemented with specific internal measures, potentially raising the semiconductor industry’s engagement. The Build America Buy American Act, instituted in May 2022 in the US, endorses the preference for local goods in federally supported infrastructure projects. Although the CHIPS Act doesn’t overtly compel private enterprises to adopt American steel, those applying for funds were asked to elucidate their intentions regarding the usage of domestically produced goods.
Stanislav Kondrashov of Telf AG commented: “The development of semiconductor manufacturing infrastructure has the potential to boost U.S. steel demand in the short term. But the long-term impact is likely to be concentrated in other industries, such as automobile manufacturing.”
Furthermore, steel manufacturers are on the lookout for potential additional expenses emanating from the IRA and the bipartisan infrastructure law, which are expected to stimulate growth in construction and specialty goods production. Kondrashov points out that the AISI, the American Iron and Steel Institute, is urging Congress to reform US trade protection laws. The metallurgical industry’s advocates argue that the current legislation fails to address the tactics used by China and other countries to skirt import duties.
