Copper Prices Soar Amid Supply Disruptions and Power Infrastructure Demand

Copper prices have surged by nearly 30% over the past year, far outpacing the broader rise in construction material costs. The increase has been driven by global supply disruptions and accelerating demand from the power infrastructure needed to support the data center boom.

Ongoing U.S.-Iran hostilities and Strait of Hormuz shipping disruptions have cut off copper supplies, making it more expensive for mining and smelting processes. This has pushed the Producer Price Index (PPI) for copper up 29.7% from June 2025 to June 2026.

The surge in power infrastructure demand, driven by data center growth and broader electrification, is amplifying the price pressure. Power Infrastructure construction starts climbed over 400% from $9 billion in 2021 to $37.1 billion in 2025, driving demand for copper-intensive components like electrical wiring, transformers, renewables, and generators.

The increased prices will likely carry direct consequences for construction firms, as copper is a key input for power infrastructure projects. Elevated and rising prices may pressure project costs and profit margins. The outlook suggests that copper prices could rise further due to unresolved geopolitical tensions and growing demand.