Construction Market Update

COPPER

This chart indicates futures only. Click here for a daily COMEX chart.

• Copper hit a 3-month low last week and seems to be sticking around the $5.50 level to kick off the week.
• The conflict in the Middle East continues to push oil and gas prices up and adds to the concern of global inflation and slower economic growth.
• Chinese slowdown on copper demand remains the narrative.
• Copper inventories are at the highest level since 2003.
• In contrast to the above, mine supply constraints remain a real concern around future demand and AI/Data Center growth looks strong into 2027 and beyond.

Bottom line: in the near term, pricing is likely to remain capped until inventories draw down or demand strengthens. Over the long term, the market is primed for more consistent price peaks as electrification and AI-driven demand stay elevated, while future supply faces growing risk from aging mines and constrained production capacity.

ALUMINUM

• Increases are expected on both wire and conduit. The Middle East is a considerable supplier of primary aluminum production, and their supply chain has been significantly impacted due to the current conflict.
• Increased energy costs disproportionately affects aluminum due to the overall cost.
• Inventories on aluminum are already thin.
• Plan to see increases from 4-15% in the coming weeks/months.