New research from Currie & Brown points to the likelihood of recent oil price volatility continuing to affect construction material costs even as tensions between the U.S. and Iran have lessened.
According to the report, fluctuations in oil prices influence the production and transportation costs of key materials, including steel, copper and aluminum, with impacts varying by region. While the recent agreement between the U.S. and Iran has reduced immediate concerns over oil supplies, the firm said it may take time for construction markets to stabilize.
Currie & Brown's analysis found steel prices could rise by as much as 18% in India, while increases in Singapore could be limited to about 4.3% due to early material procurement. In the U.K., steel prices could increase up to 9.1% under a higher oil price scenario, with copper and aluminum also expected to see price increases.
The company said ongoing uncertainty surrounding energy markets, supply chains and geopolitical events underscores the need for contractors and project owners to build flexibility into procurement strategies and project planning.
