Materials costs shifting

The World Bank’s commodity analysis flags a large oil surplus expected to average roughly 1.2 million barrels per day in 2026, which the bank says underpins much of the recent price weakness. (financialcontent.com) (financialcontent.com) Its internal tables project oil at about US$60 per barrel in 2026 and show the energy sub‑index falling sharply from 88.9 in 2025 to 79.9 in 2026 on the commodity‑price index scale. (worldbank.org) (thedocs.worldbank.org) The World Bank also flags uneven pressure across non‑energy inputs, noting precious metals, copper and aluminum have surged at times in 2025 even as the overall index softens, a dynamic that could keep electrical‑equipment and cabling costs volatile for some projects. (worldbank.org) (thedocs.worldbank.org) U.S. wholesale data show construction‑material costs still rising: the BLS reported the Producer Price Index for final demand climbed 0.7% in February 2026, while industry reporting put material inputs up about 3.1% year‑over‑year for February. (bls.gov) (bls.gov) Trade‑group and industry data underline the metal squeeze inside U.S. construction—aluminum mill shapes were up about 39.1% year‑on‑year and steel mill products about 20.9% versus February 2025, which disproportionately affects electrical and structural scopes. (agc.org) (agc.org) Cyprus’s Statistical Service registered a Construction Materials Price Index of 119.28 (base 2021=100) in February 2026, a monthly rise of 0.33% and a 0.60% increase versus February 2025, illustrating the local divergences from global trends. (gov.cy) (gov.cy) Industry analysts and contractor groups warn that these regional and commodity‑specific swings mean procurement timing, contract terms and materials hedging will determine whether project margins on large electrical builds improve or compress in 2026. (abc.org) (abc.org)