How the Iran War is Impacting Slate: Supply Chain, Shipping & Pricing Outlook

There has been increasing tension due to the war which is starting to have an impact on global energy markets and logistics. This is not a cause for immediate concern, but it is something worth understanding early to best position yourselves.

What’s Driving the Situation

There are three key factors beginning to influence material supply and pricing:

1. Oil Prices

Global oil prices have started to rise in response to geopolitical uncertainty.

This has a direct impact on:

• • Manufacturing costs (particularly for cement-based and fired products) 
  • Transport costs across all materials 
  • Shipping and freight rates

2. Shipping & Logistics

We are beginning to see early signs of disruption in global shipping routes.

• • Increased fuel costs are feeding through into freight pricing 
  • Longer or diverted shipping routes may become more common 
  • Container availability and scheduling could tighten

We have already seen shipping prices from Brazil increase, and this is likely to continue if conditions persist.

3. Exchange Rate Volatility

Currency markets have also reacted.

• Many international transactions, including shipping and raw materials, are dollar-linked.
• The £ has shown some weakness against the US dollar.
• But the Brazilian currency Real has weakened by almost 10% against the dollar.
• This is creating an upward pressure on landed costs.

What We Are Seeing So Far in the Slate Industry

At this stage, the impact remains early and selective rather than widespread:

Brazil:

• Shipping costs have already increased.

• Suppliers have advised of price increases, which, although relatively small, are being passed through the supply chain. These are largely driven by oil-related costs and exchange rate movements. Current prices are being analysed and circulated in due course.

Spain:

• Fuel surcharges on shipping from Spain are being introduced from March.

• There have been indications of potential price increases from suppliers, although nothing firm at this stage.

Exchange rates:

• Some volatility is being seen, which is adding further cost pressure.

In summary, the situation is evolving, but it is not currently causing significant disruption.

Potential Impact on the UK Construction Market

If current conditions continue, we may begin to see:

• Gradual increases in material costs across multiple product groups 
• Longer lead times on imported goods 
• Greater pricing volatility over the coming months 

However, it is important to keep this in perspective.

Unlike Covid, where supply chains effectively stalled, this situation is more likely to result in incremental cost pressure rather than immediate shortages.

That said, during Covid we saw how quickly:

• Freight costs escalated 
• Lead times extended 
• Pricing became unpredictable 

There are early signs that some of those patterns could re-emerge, albeit in a more controlled way.

Indicative Timeline

Based on how these changes typically filter through:

Short term (0–3 months):
Early freight increases, currency movement, initial supplier signals 

Medium term (3–6 months):
Material price adjustments begin to come through
Greater variation between suppliers and regions 

Longer term (6+ months):
Dependent on geopolitical stability and energy markets 

How This May Affect Demand

There are two possible dynamics:

Short-term:
Some projects may accelerate to secure pricing 

Medium-term:
If costs continue to rise, certain developments may pause or be re-evaluated 

At this stage, demand remains relatively steady, but it is something we are monitoring closely.

Practical Considerations

Given the above, a sensible approach would be:

• Allowing for potential lead time variation on imported materials 
• Maintaining flexibility around product choice where possible 

Our Position

We are in regular contact with all of our suppliers and will continue to provide updates as the situation develops.

At present:

• Supply remains stable 
• Spanish lead times are unaffected 
• Any pricing changes are limited and region-specific 

We will always aim to give as much notice as possible of any changes.

Summary

The current situation is not disruptive today, but it does introduce upward pressure on costs and potential variability in the months ahead.

By understanding the early indicators, it allows for better planning and avoids reactive decision-making later.

If you would like to discuss specific projects, pricing, or supply timelines, please call us on 01752 84 80 80 or contact us.