Copper prices hit a record high to begin the year
Copper started 2026 with a new record high as strong demand and tight supply outweighed lingering tariff uncertainty.
Back in December 2025, copper rose to a record high after China announced domestic growth would be its top economic priority in 2026 and the United States stockpiled the metal.
Why it matters: Copper’s record high reflects robust demand in data centers and renewable energy, which is outpacing production due to mining disruptions that have led to supply constraints.
What they’re saying: Some analysts expect short-term volatility due to weak demand in China. Yet, long-term forecasts expect prices to rise to incentivize the mining and refining sectors, with some projecting copper could approach $7 per pound on the London Metal Exchange in the next decade.
By the numbers:
- Today, copper opened at $6.01.
- There were 27 price increases for copper wire.
- Year-to-date average for 2025 is $4.82, 60 cents higher than the 2024 average.
Aluminum futures surge to the highest level in three years
Aluminum futures have surged above $3,000 per ton on the London Metal Exchange, the highest level in more than three years, amid tightening global supply and robust demand from the construction and renewable energy sectors.
Why it matters: The climb is attributed mainly to challenges the global market is facing, including China’s efforts to curb overcapacity, high energy costs, geopolitical risks and disruptions at smelters in countries such as Iceland, Mozambique and Australia.
By the numbers:
- Today, aluminum opened at $2.39.
- There were six price increases for aluminum wire in 2025.
- The year-to-date average for 2025 is $1.78, 49 cents higher than the 2024 average.
More aluminum news: The Aluminum Association’s President and CEO testified during the first joint review of the United States-Mexico-Canada Agreement (USMCA), urging for stronger enforcement to curb the influx of subsidized Chinese aluminum entering North America. He also called for a renegotiated USMCA with harmonized tariffs, stricter rules of origin and monitoring systems to protect jobs and markets.
Steel producer keeps its hot-rolled coil prices stable
Nucor kept its hot-rolled coil prices steady in the last week of December 2025, ending nine weeks of consistent price increases.
Why it matters: Nucor is the largest U.S. steel producer. The pause offers temporary price stability as the market enters the new year.
By the numbers: Vendors report extended lead times by approximately five to six weeks due to demand. There were seven price increases for steel pipe in 2025.
Global steel news:
- China implemented a steel export licensing framework on January 1, requiring exporters to obtain permission to ship about 300 steel products, including stainless steel. The announcement came days after China’s trade surplus surpassed $1 trillion for the first time. China’s steel exports rose 6.7% between January and November 2025. Experts believe the new measure will have a marginal impact on 2026 export levels and is more of a procedural step rather than a significant barrier to trade.
- Canada implemented new steel import restrictions December 26, 2025, reducing the quota for imports from countries without free trade agreements to 20% of 2024 levels before a 50% tariff applies. Imports from countries with free trade agreements, excluding the United States and Mexico, are limited to 75% of 2024 levels before the same tariff rate applies. Separately, Canada imposed a 25% tariff on a list of steel-derived products affecting approximately 40% of U.S. products.
- Shares of major Indian steelmakers rose approximately 5% after the country imposed a three-year tariff on select steel products to counter against cheap imports, particularly from China. The tariff starts at 12% in the first year, then falls to 11.5% and 11% in subsequent years.
PVC’s high demand boosts market value forecast
A report from Market Research Future projects the global PVC market value could grow approximately 4.28% through 2035, driven by higher demand from hyperscale projects, such as AI facilities and data centers, and from the construction and automotive sectors.
Why it matters: PVC is widely preferred in these sectors due to its versatility and durability for making pipes, fittings and more.
What they’re saying: Experts say higher demand growth for PVC could potentially warrant a price increase.
News roundup
The Federal Reserve (Fed) voted 9 to 3 to cut interest rates by a quarter-point in December for the third time in 2025 despite internal disagreements on whether to prioritize inflation or the labor market. Fed Chair Jerome Powell said in a press conference that they now will see how the economy unfolds. The Fed will meet again on Tuesday, January 27, and Wednesday, January 28.
The United States accused China of unfair trade practices in the semiconductor sector after a year-long investigation. However, it will not impose additional tariffs on chip imports until mid-2027 due to ongoing efforts to stabilize U.S.-China relations and maintain the trade truce finalized in October.