Archive for January, 2009

23
Jan

Largest latex producers to limit exports

Filed under: Pricing Trends, Supply & Distribution — Michael Prather @ 12:42 pm

In an effort to boost sagging natural rubber latex prices, Malaysia announced today that they, Indonesia, and Thailand will place further limit latex exports to control supply. The three nation’s represent the world’s largest rubber-producing countries.

This announcement is not the first attempt to stabilize prices. Back in December, IRCo, which represents producers in the three countries, announced plans to reduce production by 15% beginning this month.

Read more:
Malaysia to cut rubber exports

21
Jan

Chinese economy suffering amidst global economic downturn

Filed under: Pricing Trends — Michael Prather @ 10:41 am

Purchasing reports that less than almost three-quarters of US buyers were seeking to lower stock levels in December. Already drowning in an excess supply of goods, economic growth in China has slowed considerably in recent months. Indicators of growth, like steel production, power consumption, etc., have all declined.

As some importers look to shed costs by trimming inventory levels, be sure you’re supply chain is protected from uninterruption and backorder.

19
Jan

Ocean freight rates continue to drop

Filed under: Pricing Trends, Supply & Distribution — Michael Prather @ 9:33 am

The volatility of the global economy has been especially hard for ocean carriers. Fuel prices produced record freight rates last summer. Demand evaporated in the fourth quarter, however, sending rates to all-time lows and leaving the fate of some carriers in doubt.

For importers, the lower freight rates are a mixed bag. For new orders, the lower rates mean lower costs. But because the downturn occurred so quickly, many suppliers are still struggling to shed inventories purchased during times of higher costs.

Read more:
Plunging freight rates have some ocean carriers in survival mode

16
Jan

Chinese New Year halts glove production

Filed under: Supply & Distribution — Michael Prather @ 11:45 am

With the Chinese New Year quickly approaching on January 26, glove suppliers are quickly working to finalize business with manufacturers. The national holiday is the most significant of the Chinese calendar, and results in shutdown of government offices and other businesses for several days.

The official holiday spans from January 25-31, but many businesses close much sooner and may remain closed into February to allow migrant workers to return home. When the economy is strong, some factories will remain open through the holiday. This year, however, with weakened global glove demand, expectations are that all factories will close, even if only for a brief period of time.

Read more:
Mass migration home starts for Chinese New Year

15
Jan

Bank of China signals interest rate cuts

Filed under: Pricing Trends — Michael Prather @ 10:08 am

Facing with an economic slowdown of their own, China’s central bank suggested that further interest rate cuts may come in the next few months. This announcement is just the latest signs of economic turbulence. Just last year, the Chinese government was raising rates to control inflation as prices soared. Now, with stagnant global demand, China is forced to take measures to encourage investment.

Should the rate cuts occur, the infusion of capital should help vinyl glove manufacturers maintain cash flow and provide more generous payment terms to US suppliers.

Read more:
China Set to Cut Interest Rates Drastically

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