Smolka Kitchen and Bath Copper Costs

Copper Costs a Pretty Penny These Days

Demand Is Up, Supply Is Down, Builders Are Stuck in the Middle

By Chuck Ross

August 28, 2006—While the rest of the country is complaining about rising gasoline prices, builders and remodelers have their own commodity problems right now with copper. In some areas, copper prices have more than doubled in just six months. And with the average single-family home using as much as 440 pounds of copper, according to the Copper Development Association (CDA), those price hikes are beginning to have an impact on costs.

"It's a supply and demand situation," says Ken Geremia, manager of communications for the CDA, a copper-industry research and information organization. In this case, mine-labor problems in South America, especially Chile, have constrained supplies, while growing demand, largely from China, is forcing prices up. Market speculators also have had an impact on the cost, Geremia says.

One word: plastics Though electricians have few alternatives to copper wiring, plumbers—and the builders and remodelers who work with them—do have options to traditional copper pipe. Many are now turning to the numerous plastic options now on the market.

"My price for half-inch copper pipe used to be 80 cents a foot, and now it's $2.60 a foot," says Sandi Perlman, CKD, CR, owner of Indianapolis-based Blue Ridge Design, who adds that this price hike has happened just since February. "I'm getting to the point where 85 percent of the time I'm using PEX."

And Sandi's not alone in turning to PEX (cross-linked polyethylene), according to Shawn Martin, director of applied technology at the NAHB Research Center (NAHBRC).

"There's been a real renewed interest, as it applies to piping," he says. "Manufacturers are essentially running flat out."

Minimizing material use For builders still using copper for supply lines, out of personal preference or because of local code requirements, new system designs can help cut pipe-run lengths, Martin says. For example, placing a water heater in a centralized location, rather than off to the side, can mean shorter hot-water lines. Similarly, stacking bathrooms instead of spreading them out can make for more efficient layouts.

"If you're smart about where you put things, you can save on materials," he says. "A little bit of thought can keep copper use reasonable."

Just how long copper prices will remain as high as they are now is unknown. Prices have fallen slightly from their July peak, but not enough to have an effect on pipe and wire costs. In the meantime, plastic-pipe manufacturers will continue to see their market presence strengthen. And, though some builders, like self-proclaimed "old schooler" Sandi Perlman, will likely switch back to copper if prices do fall to acceptable levels, others may find they actually prefer working with alternative materials.

"Some turn to them in case of necessity and then find it inconvenient to turn back," Geremia says, noting the possibility that successful use of alternatives could lead to permanently lost customers for the copper manufacturers his organization represents. "There's always consternation when there's a reduction in the market, because then you have to work twice as hard to recapture [your market]."

On its Toolbase website, NAHBRC has several tech briefings that cover plastic-based alternatives, including PEX and aluminum-plastic composite piping. In addition, the group is working with the Plastic Pipe and Fitting Association to develop a new plastic-pipe design guide, scheduled to be released in early 2007.
Chuck Ross is a freelance writer based in Brewster, Mass., who frequently covers building and construction topics.

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