Ukraine and Russia are the top suppliers of pig-iron ore, a crucial component in steel production, to the United States. The war between the two countries and consequent import sanctions on Russia have caused a supply shortage in the steel market and fueled an increase in the price of pig-iron ore by 50%. According to a December U.S. Chamber of Commerce survey, the commercial construction industry found that the high price of steel combined with product shortages could stall the post-pandemic commercial construction recovery.
Despite these headwinds, the Biden administration's initiative to help the domestic steel industry by mandating American steel be used in infrastructure projects receiving federal funding could benefit the steel industry. Also, according to The World Steel Association, steel demand will grow by 0.4% in 2022 to 1,840.2 Mt. The iron and steel market are projected to reach $1883.88 billion by 2026, growing at a 2.9% CAGR.
