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Mideast war drives up condom, rubber glove prices: manufacturers / Photo: © AFP/File
Mideast war drives up condom, rubber glove prices: manufacturers
Prices of rubber products have shot up due to supply chain disruptions stemming from the Middle East war, the world's largest condom maker and a leading glove manufacturer, both based in Malaysia, said on Friday.
Karex, which supplies condoms for brands like Trojan and Durex, said it had to increase prices by up to 30 percent, while global supplier Top Glove said the main material for synthetic rubber gloves had doubled in cost.
Much of Malaysia's rubber industry relies on oil to produce goods, but supply has been scarce since Iran imposed a de facto closure of the Strait of Hormuz, through which around a fifth of global crude and liquefied natural gas passes in peacetime.
The closure, which began after the United States and Israel launched strikes on February 28, has also affected raw material costs and disrupted global shipping.
"We continue to experience longer lead times from suppliers, increased price volatility and higher freight costs," Karex chief executive Goh Miah Kiat said.
"In the meantime, we are also holding more key raw materials critical for business operations, and hence requiring the need to increase costs by up to 30 percent," Goh told AFP in an email.
A crucial raw material affected, silicone oil, is "used in every condom", Karex said.
Karex makes more than five billion condoms yearly, helping to prevent unintended pregnancies and sexually transmitted diseases across the globe. It provides condoms to organisations such as Britain's National Health Service and the World Health Organisation.
The prices of other Karex products, from personal lubricants and probe covers to catheters and aluminium foil packaging, have also increased, Goh said.
Costs have been affected "across the board", including the price of condom material nitrile latex and natural rubber.
Top Glove, one of the world's leading manufacturers of rubber gloves, said it was particularly hard hit by a sharp hike in the price of nitrile butadiene rubber "which has increased by more than 100 percent, reflecting tight supply".
"For natural rubber gloves, input costs have risen by approximately 30 percent, as natural rubber is a traded commodity which is impacted by the uptrend in crude oil prices," the company added.
Top Glove supplies 95 billion gloves per year to more than 2,000 customers worldwide.
Both manufacturers said the supply of their main products remained stable.
"However, longer ship lead times are causing lower inventory levels at our customers' end, and certain condom manufacturers are facing challenges in production," Karex's Goh said.
F. Fernandes--JDB
