July Nymex Midwest Domestic Hot-Rolled Coil Steel Futures hit a record high of $1,801 Monday, rising nearly 1%, after more than doubling from the virus pandemic low in 1Q20. 

Hot rolled steel is used in agriculture and heavy machinery equipment because of its high strength and formability. With the Biden team in damage control last weekend, admitting they will sign the roughly $1 trillion bipartisan infrastructure, prices have been on a tear. Base metal prices, such as copper, iron ore, and other metals, have also surged, as bets that infrastructure spending to revamp and expand railroads, highways, and bridges will boost demand. 

Chief Investment Officer Americas at UBS Global Wealth Management said the total amount of infrastructure spending could be greater than the bipartisan compromise. 

"This is a scenario that we do not think markets are fully pricing for yet, and thus could provide a tailwind for the reflation trade if the momentum for a two-bill track builds," Marcelli said. 

S&P Global Platts noted the continued tightness throughout the steel supply chain in the US and elsewhere could result in higher prices if infrastructure spending is passed. 

With the infrastructure deal risking to fuel more persistent inflation, the likes of former Clinton Treasury Secretary and erstwhile Harvard President Larry Summers, fellow Democrats, are warning the firehose of COVID-inspired fiscal and monetary stimulus would likely cause runaway inflation.