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AUGUST 2026
CONSTRUCTION MARKET UPDATE

COPPER

Copper is trading near $6.50-$6.60/lb, remaining close to historic highs. This is driven by a larger increase in AI and Data Center demand than originally projected and limited supply growth. The mine supply growth for 2026 is expected to only be about 1-2%, while demand continues to outpace production growth.

In addition, stockpiling of copper continues due to the unknown effects of tariffs. 

Forecast Possibilities:

Bullish - could move toward $7.00/lb.
Factors that would create this:

  • Additional mine disruptions occur
  • Chinese stimulus accelerates demand
  • Another round of U.S. copper tariffs emerges
  • AI and data center projects continue at current pace
  • Investor money continues rotating into copper

Bearish- could retreat in the $5.50-$6.00/lb range.
Factors that would create this:

    •    Global economic growth slows

    •    China demand underperforms

    •    Existing copper inventories are released into the market

    •    Large-scale speculative positions unwind

ALUMINUM

Aluminum prices remain at a multi-year high, with no detraction in sight. Major factors impacting the cost:

  • High energy costs (aluminum production is extremely power-intensive)
  • Tight global inventories
  • Supply constraints in China
  • Continued demand from utilities, renewable energy, EVs, and data centers
  • U.S. tariff impacts on imported aluminum products
  • Additional factors driving up prices:
    •  Aluminum being used as a substitute for copper amid high prices
    • Slowdown in imports due to tariffs

STEEL

  • Steel prices continue to climb: hot-rolled coil (HRC) prices increased $30/week to $1,199 per short ton, the largest weekly gain in a month.
  • Lead times are currently at multi-year highs. HRC, cold-rolled, and galvanized products all have extended lead times. About two-thirds of buyers expect no improvement within the next two months.
  • Supply constraints: Mills are operating at 81% capacity utilization but still cannot satisfy spot demand.
  • Planned outages, maintenance, and upgrade projects are limiting available supply.
  • July import licenses reached 2.294 million short tons, the highest level in 14 months.
  • Section 232 tariffs remain at 50%, preserving a domestic price premium of about $112/ton over imports.


Overall Steel Market Outlook

  • Currently experiencing a bullish steel market with tight supply conditions.
  • Prices and lead times are increasing across most flat-rolled products.
  • Strong buyer sentiment and energy-sector demand continue to support higher pricing.
  • Limited near-term relief expected despite higher import volumes.

AUGUST 2026 KEY TAKEAWAYS 

Copper prices remain near all-time highs, while steel costs continue to trend upward, creating ongoing pressure across the industry. At the same time, medium-voltage cable lead times remain challenging despite manufacturers investing in additional production capacity. To avoid project delays and cost impacts, it's more important than ever to plan ahead. Van Meter can help you proactively procure materials and secure the products you need, ensuring your projects stay on schedule and within contract requirements.

LEAD TIMES

Medium Voltage Cable - 35kv  Plan for up to 52 weeks on some items
Medium Voltage Cable - 15kv Could be as long as 36+ weeks
Armored CablesCopper and Aluminum Feeder MC is getting hit hard by the data center sector, expect 30+ week lead times
Tray Cable6-8 weeks
PVC  Stock - 6 weeks
Feeder CUXHHW  Potential lead times on large feeder quantities

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