China has approved its own $586 billion economic stimulus package. Like the US, China has been fighting to combat the global economic downtown. Facing their own credit crisis, it is hoped that the new stimulus may help to improve cash flow for glove manufacturers. For more on how a manufacturer’s credit impacts US glove suppliers, visit the link above.
The sharp decline in oil prices over the last two months is now helping curb PVC prices. Comprised of ethylene derivatives, PVC prices are highly correlated with the price of oil. Last month alone, PVC costs dropped 4%, and further relief may be ahead since PVC pricing typically lags behind fluctuations in oil.
Still, why justified, this optimism must be taken in perspective. PVC prices remain up over 17% from January 1, and changes, while they may come, will take between 90-120 days to effect glove prices because of the long ordering process.