Obama’s Jobs Plan Could Give Steel ETFs Strength

The Obama Administration is hard at work to stimulate the economy and add more jobs. As many as 2 million Americans could benefit, but they’re not the only ones. The U.S. steel industry and exchange traded funds (ETFs) could be getting a boost, too.

President Barack Obama’s National Export Initiative (NEI), a federal program designed to double U.S. exports over the next five years to support 2 million American jobs, is highly regarded by The North American Steel Industry. Steel Works says the U.S. steel industry has been a rough one for years, and has been dependent upon the strength of the U.S. dollar. [China's Role in the U.S. Steel Industry.]

Global demand has dipped, but watchers expect the declines to reverse as economies rebuild. The North American industry typically exports about 8 million tons of steel per year, according to Thomas A. Danjczek, president of the Steel Manufacturers Association. This figure could grow by 20% or more by the time the recovery is in full swing. [Coal and Steel ETFs in 2010.]

The NEI is targeting three main points to ensure growth:

• Improving access to credit, with a focus on small= and medium-sized businesses that want to export.
• Expand trade advocacy for all business sizes, which includes educating U.S. companies about opportunities overseas, directly connecting them with new customers and advocating more forcefully for their interests.
• Keep international trade markets regulated so all U.S. businesses can get free and fair access to foreign markets.

[For more stories about steel, visit our steel category.

• Market Vectors Steel (NYSEArca: SLX)

• PowerShares Global Steel (NYSEArca: PSTL)