Commodity prices for key industrial materials have surged significantly over the past year, driven by strong demand from large data center projects and supply chain disruptions. Copper prices climbed 35%, steel increased 31%, and PVC rose 21%, according to a report from electrical distributor Border States. The report highlighted that copper prices reached approximately $6.59 per pound in October, up 36% from the previous year, while steel suppliers implemented additional price hikes of 5% to 10% at the start of November.
The report attributed the price increases to factors such as reduced production at a major Chilean copper mine due to severe winter weather, ongoing trade negotiations between the United States and Mexico over steel and aluminum tariffs, and higher resin costs for PVC. Lead times for larger-diameter PVC products have extended to eight to 12 weeks, potentially impacting distributors and contractors working on electrical and infrastructure projects.
Aluminum prices also saw a 9% increase from October 2025 to October 2026, with production disruptions in the Middle East affecting global supplies. However, increased Chinese output and expanding production capacity in Indonesia are expected to help offset some shortages, potentially leading to a global aluminum surplus in 2027.
Border States noted that these pricing and supply pressures are complicating inventory planning and customer pricing decisions for electrical and industrial distributors. The continued demand from data center projects remains a significant factor influencing commodity prices and product availability.