- Copper prices jumped over 30% in 2025, reaching the highest level since 2009.
- US tariffs on copper products are driving up costs on construction projects.
- Supply disruptions and robust demand signal long-term copper price pressures.
- Developers and contractors have limited options to offset increased copper costs.
Copper Prices Hit New Highs
Copper prices are soaring across global and US markets, with a year-to-date rise topping 30% and spot prices passing $12,000 per metric ton in December, per Bisnow. The rally represents copper’s sharpest annual growth in over a decade, fueled by mine supply problems and a wave of tariffs impacting the US construction market.
Tariffs Increase Builder Challenges
New US tariffs — introduced earlier this year — are directed at finished and semifinished copper such as pipes and wiring. While raw copper cathodes are exempt, the tariffs have heightened costs for essential building materials. Price data shows copper inputs for construction rising by 15% to 40% in just 12 months, according to industry sources.
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Supply Constraints Add to Pressure
Disruptions at major copper mines and delays in bringing new supply online are keeping the market tight. Analysts now expect copper demand from data centers, electrification, and renewable energy projects to surpass available mined supply by the middle of the decade. Short-term inventory movements have resulted in a unique price gap between US and global copper benchmarks.
Long-Term Impact for Developers
The implications for construction are far-reaching. Even if some tariff exemptions are introduced, copper prices are still expected to keep material costs high. This is especially true for projects where copper is critical and hard to substitute, such as data centers, healthcare, and power-heavy commercial buildings. This comes at a time when certain markets are already grappling with historically low construction activity, highlighting how compounding factors—tariffs, input costs, and supply challenges—are reshaping development feasibility across the US Developers are adjusting procurement and contracting but have few ways to fully absorb the increased costs.
What’s Next
Tariffs, supply constraints, and strong demand are all pushing copper prices higher. Industry analysts warn these elevated levels may become the new norm, squeezing project budgets even if broader inflation cools.
