Why This Matters to Distributors: Rising copper, steel and PVC prices are increasing purchasing costs for electrical and industrial distributors. Demand from large data center projects is also extending lead times for conduit and pipe, complicating inventory planning and customer pricing as suppliers announce additional increases.
Copper prices rose 35% over the past year, while steel increased 31% and PVC climbed 21%, according to a new report from electrical distributor Border States that cited strong data center demand, supply disruptions, and higher manufacturing costs.
The distributor’s Nov. 9 Commodity Update also reported a 9% increase in aluminum prices from October 2025 to October 2026. Steel suppliers began November with additional price increases of 5% to 10%, while PVC manufacturers announced increases tied to higher resin costs and continued demand.
The increases are affecting distributors supplying electrical contractors, industrial customers, and large construction projects, particularly those requiring copper wire, steel conduit, and PVC pipe.
Copper prices eased in October after reaching record highs in September, when suppliers implemented two price increases on copper wire.
The average October copper price on the London Metal Exchange reached approximately $6.59 per pound, up 36% from a year earlier, Border States reported.
The average price for the first 10 months of 2026 was $6.15 per pound, compared with $4.51 during the same period in 2025.
Border States said demand from large data center projects, mine disruptions and regional supply differences continued to support higher prices. Suppliers implemented another copper price increase in October.
The distributor also cited reduced production at a major Chilean copper mine following severe winter weather.
Steel suppliers began November with price increases ranging from 5% to 10%, according to Border States.
Prices for three-quarter-inch steel rose 31% from October 2025 to October 2026.
The report said demand from large data center projects continued to strain manufacturing capacity, contributing to order backlogs and longer lead times, particularly for larger diameter conduit.
Border States also cited lower import levels and steady domestic demand as factors supporting U.S. steel prices.
Trade negotiations between the United States and Mexico remained unresolved over potential reductions to steel and aluminum tariffs, which the report said stood at 50%.
Prices for 4-inch PVC increased 21% over the past year, with suppliers announcing additional increases in early November.
Border States attributed the increases to higher resin costs and continued demand from large data center projects.
The distributor reported lead times of two to four weeks for PVC pipe measuring 2 inches or less. Products measuring 3 inches or larger faced lead times of eight to 12 weeks.
The longer delivery schedules could affect distributors and contractors purchasing larger diameter conduit for electrical and infrastructure projects.
Aluminum prices rose 9% from October 2025 to October 2026, according to Border States.
The distributor said production disruptions in the Middle East continued to affect global supplies, although increased Chinese output helped offset some shortages.
Chinese aluminum exports rose 16% during the first eight months of 2026, according to the report.
Indonesia is also expanding production capacity, with aluminum output projected to increase from 619,000 tons in 2025 to 4 million tons by 2030.
Border States cited analysts who expect global aluminum supplies could move into a surplus in 2027 as Middle East production recovers and additional Indonesian capacity becomes available.
The report points to continued pricing and supply pressures across several product categories.
Copper prices remain elevated despite easing from September highs. Steel suppliers are implementing additional increases, while larger-diameter PVC products continue to face extended lead times.
For electrical and industrial distributors, those conditions could increase inventory costs and complicate purchasing and customer pricing decisions.
Border States said demand from large data center projects remains a significant factor affecting commodity prices and product availability.
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