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The United States’ infrastructure sector is looking at a potential trillion-dollar investment over the next eight years. The steel industry, which is currently witnessing soaring prices given the high global demand, should hit fresh highs soon. Section 232 tariffs placed on steel imports by the previous administration have led to nearly $15.70 billion in new capacity investments, allowing the domestic steel industry to improve. On the global front, steel production had increased 23% year-over-year in April.
The steel industry boom is expected to increase if an infrastructure bill is passed, given steel’s use in construction. Given this backdrop, we think small-cap steel stocks Usinas Siderúrgicas de Minas Gerais S.A. (USNZY), Schnitzer Steel Industries, Inc. (NASDAQ:SCHN), and Insteel Industries, Inc. (IIIN) could be attractive additions to one’s portfolio, based on their immense growth potential.
