Composites UK continues to monitor the evolving geopolitical situation in Iran and the wider Middle East since January 2026. Developments in the region are progressing rapidly and are now beginning to have a direct impact on pricing and supply chains within the global chemicals market.
One of the most visible indicators has been the rise in crude oil prices, which have increased from the low-mid $60 per barrel range to over $100 per barrel. As crude oil is a key upstream input for many petrochemical products, this movement has a direct correlation with the cost of numerous feedstock chemicals essential to the manufacture of composite materials.
In addition to price increases, there are growing concerns regarding the continued availability of certain feedstocks. The European and UK chemicals industries are no longer self sufficient in raw material feedstocks and are dependent upon long supply chains.
Early indications suggest potential supply restrictions, and in some cases there are reports of possible force majeure declarations in sectors supplying the chemicals industry. Should these develop further, they may affect the availability of materials used throughout the composites supply chain.
These pressures are being compounded by broader cost increases, including higher energy prices and rising shipping rates.
Traditionally, product pricing in the composites sector has been closely linked to movements in raw material costs. However, additional cost pressures such as currency fluctuations, inflation, and sustained high energy prices have not yet been fully reflected in downstream product pricing. It is therefore reasonable to expect that some market realignment may occur to reflect not only raw material increases but also these additional structural cost pressures, particularly if current conditions persist.
Key factors currently affecting the materials market include:
- The increase in crude oil prices from approximately $60 to over $100 per barrel
- Sterling exchange rate movements against the euro and US dollar
- Short- to medium-term uncertainty around energy costs
- Cost and availability of speciality raw materials
- Competition from other industries for limited material supply
- Dependence upon long supply chains of essential raw materials feedstocks
These factors are impacting a broad range of materials used across the composites sector, including resin systems and speciality chemicals, reinforcements such as glass and carbon fibre, organic peroxides, and other critical inputs.
At the same time, composites continue to play a vital role as a key enabling technology in the transition to renewable energy, the electrification of transport systems, and the longer-term development of hydrogen infrastructure. As demand for these technologies grows, the balance between supply and demand for key materials may become increasingly tight.
Message to Composites UK members
- Market conditions may remain challenging in the near term
- Forward planning is recommended, particularly where critical feedstocks are involved
- Members should review the resilience of their supply chains to ensure continuity of production
Composites UK will continue to monitor developments and share further updates with members as the situation evolves.