INSULATION PRICES OVER THE YEARS*
Inflation affects not only everyday grocery products, fuel, or gas bills, but also the prices of building materials, particularly insulation. In this article, we will briefly discuss the factors influencing the rising prices of thermal insulation, when these increases usually occur, and the most favourable times to purchase insulation.
INSULATION PRICE INCREASES
The price of insulation is influenced by its production process, composition, and duration of production. The production process for materials like expanded polystyrene (EPS) differs greatly from that of mineral wool, such as ROCKWOOL. Surprisingly, the production process for EPS is much cheaper than that of mineral wool. EPS is formed in big industrial foundries and then thermally cut to the desired dimensions. The amount of square metres required for producing EPS is significantly smaller, resulting in lower construction and maintenance costs for buildings, sometimes even up to 70% less compared to the production of mineral wool. On the other hand, mineral wool requires a larger number of machines, a longer technological production process, and more human labour. This is because mineral wool is a natural component derived from the earth, which requires extraction, crushing, massive owen, and significant energy consumption, leading to higher costs. In fact, mineral wool, such as ROCKWOOL, can be around 50-60% more expensive than EPS, XPS, and approximately 20-30% more expensive than PIR insulation boards.
WHY IS INSULATION SO EXPENSIVE?
If you have ever wondered why thermal insulation is so expensive, you had good reasons to do so. It might seem that insulation should not be a costly product, especially considering that it is often made from natural materials provided by the earth. However, the reality is quite different. While the extraction of these materials is relatively inexpensive, their transportation and processing are not. Hence, the high costs associated with insulation. The energy demand of manufacturing plants is significant, often exceeding 150 kW of power. As an approximation, the cost of electricity for 150 kW of power can range from several hundred to several thousand pounds per month, depending on various factors. However, this is only an estimated value, and actual costs can vary significantly depending on specific conditions and agreements. The energy used in insulation production is not sourced from the cheapest options, contributing to the high prices of the final products.
WHEN DO PRICES OF EXTRUDED POLYSTYRENE (EPS) STYROFOAM INCREASE?
EPS styrofoam is a petroleum-derived product, and therefore its price is closely linked to the current price of a barrel of oil on the global market. This price is susceptible to fluctuations depending on the political situation in the market. Events such as the war in Ukraine and the COVID-19 pandemic have shown us how dependent we are on oil and fuel. Temporary shortages can significantly impact their high prices.
The price of styrofoam, as mentioned earlier, is highly dependent on oil prices and can fluctuate, even doubling within a month. Just three years ago, we paid around £10 for a standard 100mm thick white styrofoam board. Today, we pay over £20 per square metre. Additionally, the increasingly expensive transportation costs, which are also dependent on rising oil prices, should be taken into account. Therefore, it could be inferred that it is advisable to buy styrofoam during periods of stable interest rates and declining oil prices. Looking at the oil price chart from 2004 onwards, it is easy to notice the riskiest period for purchasing EPS.
After only 8-9 years, the EPS price could return to previous levels, but unfortunately, only on paper. Factories still have to pay higher heating costs, higher wages for employees, and overall EPS prices remain at a higher level, with no signs of decrease.
WHEN IS IT WORTH BUYING EPS?
It is best to remember that it is not worthwhile to wait when purchasing EPS; it is almost always more expensive, and it rarely becomes cheaper, and if it does, it is only by 3-5%. Its price decrease is more influenced by weather conditions and the time of year rather than market fluctuations. However, it is generally accepted that EPS can be purchased at the lowest price during the winter period, from January to the end of March.
WHEN DO PRICES OF ROCKWOOL INSULATION INCREASE?
The price of rockwool insulation is not directly dependent on natural resources but rather on the costs of processing. Higher labour wages and current fuel prices almost always increase the cost of this product. The higher the costs for the manufacturing company, the higher the purchase prices. It is believed that rockwool insulation prices increase in line with government insulation programs. Its temporary higher demand leads to price increases.
It's important to remember that factories can only produce a strictly defined amount of insulation products in a given month. Therefore, even a slight increase in demand can cause prices to rise by 40%. Manufacturing facilities usually shift to longer working periods, often operating in 2 or 3 shifts. To buy rockwool insulation at the lowest price, it's advisable to wait for a period of lower demand. In contrast to EPS, rockwool insulation is said to be cheapest in the summer months, specifically July and August, as it is the period when insulation of houses is least frequent.
WHEN DO PIR BOARDS PRICES INCREASE?
PIR insulation boards, such as Celotex, Xtratherm, or Kingspan, are not as susceptible to market fluctuations, and their prices tend to remain stable. Rarely does their price increase by 30% like EPS. Price increases for PIR boards are typically in the range of 10-15% at most, and these increases occur annually and usually only once. This is due to intense competition in the market for this type of insulation material. There are numerous factories producing these products, including major companies such as Xtratherm, Celotex, Kingspan, Recticel, and IKO-Enertherm. As can be seen, there is no shortage of manufacturers, and in the event of any market turbulence, these factories can produce large quantities of insulation materials. It's not without reason that PIR boards are the most common and well-known in the UK market. Interestingly, Celotex was the first to introduce an innovative and thinnest insulation product, TB40012. Unfortunately, for unknown reasons, the product was discontinued. Today, its replacement is the 15mm Xtratherm board.
WHY IS PIR INSULATION EXPENSIVE?
Some may wonder why PIR boards are expensive. The answer is quite simple. The extraction of basic raw materials for PIR board production is costly, resulting in a higher price for the final product. Despite its higher cost, PIR boards offer incredible thermal insulation properties with a thermal conductivity value as low as 0.022 W/mK, making them one of the best options in the market. Good products are never cheap, and if they are cheap, they may not be of the highest quality.
When purchasing insulation, it is essential to consider that we insulate a house once in a lifetime, and replacing it with a better option is often not possible or too costly. Therefore, today's higher price for PIR boards may prove to be a worthwhile investment after a few years of lower energy bills.
WHAT IS THE BEST TIME TO BUY PIR INSULATION BOARDS?
It is recommended to purchase PIR boards regardless of the time of year. However, it's worth noting that their prices usually increase in January or March each year. Therefore, the best time to buy PIR boards appears to be in November and December. Moreover, December, being the last month of the year, can bring significant savings to our wallets. Many companies offer sales on insulation products during this period, allowing for potential savings of up to 5% on PIR boards.
CONCLUSION - INSULATION BEST PRICE / WHAT TIME OF YEAR IS INSULATION CHEAPEST?
In conclusion, it can be stated that insulation prices are significantly influenced by current fluctuations in oil prices, gas price increases, and inflation levels. When it comes to purchasing insulation, the best time to buy PIR boards is in the month of December, for EPS insulation it is the period from January to March, and for rockwool insulation, the months of July and August. These are the periods that guarantee the lowest prices for these products. If our budget is limited, it is advisable to plan insulation projects accordingly, aligning them with these timeframes.
Related articles:
THE TOP LOW-COST INSULATION CHOICES FOR YOUR HOME
THE INSULATION GAME: DON'T LET HEAT ESCAPE, WIN WITH PROPER INSULATION!
THE DANGERS OF OVER INSULATING YOUR HOME
FOIL INSULATION: TO GAP OR NOT TO GAP? THAT IS THE QUESTION!
*All the information provided in the content published on Insulationgo blog is for informational and educational purposes only. Insulationgo LTD makes every effort to ensure the accuracy and timeliness of the content, but we do not assume any responsibility for any errors or omissions.
The information presented on this blog should not be considered as professional advice or a substitute for consulting relevant experts. Before making any purchase decisions or taking action based on the information presented here, it is strongly recommended to contact the product manufacturer directly to verify the details and ensure its suitability for your specific needs.
By using this blog, you acknowledge and agree that Insulationgo LTD shall not be held liable for any damages, losses, or inconveniences arising from the use or reliance on the information provided herein. This limitation of liability applies to all users of the blog, including but not limited to visitors, readers, and subscribers.
