FXStreet reports that strategists at ANZ Bank note that the U.S. infrastructure plan should, on the face of it, accelerate the country’s economic recovery. It is likely to boost demand for metals, but probably will not supercharge the commodity cycle in the way many have hoped. 

“A bipartisan group of senators has tentatively agreed to a package of nearly $1trn. We calculate approximately $500 B will be spent on infrastructure such as roads, bridges and highways. Overall this could lead to steel demand hitting 120m tonnes, compared with 105mt in 2019.”

“Construction has traditionally been the biggest contributor to demand for most metals. Therefore, this spending package should boost demand for copper and zinc, in particular. However, the real kicker will be the $7.5 B investment in electronic vehicle (EV) infrastructure.”