Why PIR is so exposed

PIR insulation is not just a board on a pallet. It is a manufactured product built from chemical feedstocks, energy-intensive production and large-scale logistics. One of the key inputs is MDI, which is used in PIR and polyisocyanurate board production alongside other petrochemical-derived components, facers, packaging and transport.

That matters because PIR pricing does not just follow demand in construction. It is also exposed to oil and gas pricing, refinery and chemical feedstock costs, shipping disruption, fuel surcharges, insurance and wider manufacturing inflation.

Why the Middle East matters

The Middle East remains central to global energy flows. The Strait of Hormuz is one of the world's key chokepoints. U.S. Energy Information Administration analysis notes that roughly one fifth of global petroleum liquids consumption and more than one fifth of global LNG trade moved through Hormuz in the first half of 2025.

That does not mean every PIR board is made there. It means the cost base behind chemicals, fuel and transport is highly sensitive to disruption in that region. When markets see risk around supply, shipping or processing, pricing can move before physical shortages are visible on site.

Why recent conflict is feeding into insulation prices

There are two overlapping effects. First, military escalation in and around the region adds a risk premium across energy and chemicals. Even where physical supply continues, markets price in uncertainty. Second, shipping networks were already under pressure before the latest escalation. Red Sea disruption forced rerouting and longer voyages, increasing freight costs across multiple supply chains.

When fresh tension hits Middle East energy routes on top of existing shipping disruption, the result is more pressure on materials that depend on petrochemicals and freight. In practical terms that means higher chemical input costs, higher transport and fuel costs, higher tanker and freight insurance, less certainty around lead times and more defensive pricing from manufacturers and distributors.

Why the increase is showing up as 10% to 15%

Not every manufacturer moves by exactly the same amount, and not every line changes at the same time. But supplier notices and merchant updates in the UK market are already showing a clear pattern of PIR increases. Across major brands, many notices are clustering around roughly 10% to 12%, with some selected lines moving higher. That makes a broad 10% to 15% market summary realistic without pretending every SKU is identical. Unfortunately, most of our suppliers have gone up another 15% starting the 1st April 2026, after already taking a 10% increase back in February. 

For anyone buying SIPs, that matters because PIR board cost is a direct input into the overall panel cost. 

What this means for SIP projects

For SIP builds, PIR inflation does not just affect one accessory line. It directly affects the insulated core of the panel system. If insulation prices rise, panel prices usually follow unless manufacturers absorb the increase, which is difficult to do for long.

• Revised quotations after supplier increases land
• Shorter quote validity periods
• Tighter lead time management
• More emphasis on ordering early once a design is approved

The practical takeaway

If you are planning a SIP project in 2026, the sensible approach is to get your design and quantities finalised early, expect quotes to have validity windows and avoid assuming insulation prices will remain flat for months. Delivery, energy and raw material volatility all feed into the final cost.

This is one of those situations where delay can become its own price increase.

What we are watching

• Energy market volatility linked to Middle East shipping routes
• Freight and war-risk insurance costs
• Chemical market pressure on MDI and related inputs
• Live UK supplier notices from PIR manufacturers and merchants