Insight
Is the Inflation Reduction Act a game-changer for the US steel industry?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The Inflation Reduction Act (IRA), the largest climate and energy spending package in US history, is expected to boost clean energy supply through more than US$350 billion in funding dedicated to renewable power buildout and climate change over the next 10 years. From a steel demand perspective, this will accelerate growth from construction segment in sync with the push coming in from Infrastructure Investment and Jobs Act (IIJA). The question that remains is: will IRA be a game changer for the industry. While we foresee US apparent finished steel demand to rise at a CAGR of 2% until 2032, how much of this is coming in from the new bill?
Table of contents
- IRA to curb emissions but also energy prices
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IRA impact
- Solar and wind power
- Carbon Capture Utilization and Storage (CCUS)
- Clean hydrogen
- The bottom line: 1% incremental demand by 2032 is good, but should not stir up a frenzy
Tables and charts
This report includes the following images and tables:
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Total carbon emissions by countryIRA-related incremental steel demand in construction by 2032US steel demand growth by sector
What's included
This report contains:
