Archive for the ‘Pricing Trends’

In a recent article published by The Star (Malaysia), The Association of Natural Rubber Producing Countries (ANRPC) Director-General Prof Djoko Said Damardjati predicted that “[natural rubber] prices will remain firm . . . until supply recovers by early 2012″.  While rubber supplies are expected to rise this year, the added supplies are not likely to offset building demand from the recovering global economy.  According to a report released by the ANRPC, Chinese natural rubber imports alone rose by an astounding 63% from January to February.

The Star:  Rubber prices reach new highs

Latex prices continue to surge as rising global demand outpaces supplies.  Natural rubber latex prices are now up more than 23% year-to-date and have nearly doubled since July last year (Source: Malaysian Rubber Board).

In March, the Association of Natural Rubber Producing Countries cautiously predicted supplies would rise 6% globally in 2010, but warning that factors like drought and replanting may hinder this prediction.  Meanwhile, rubber consumption in China, India and Malaysia has skyrocketed, spurred by heightened demand from the automotive industry.

Read more on this Topic:
Bloomberg:  Rubber Prices to Stay ‘High’ Until June

While recent news has focused primarily on rising latex glove prices, cost factors associated with vinyl gloves have also been steadily increasing.  Since July of 2009, polyvinyl chloride (PVC) prices have risen 32.6%.  Plasticizer, used to soften the gloves, is up 56.9%!  These worrisome trends have shown no signs of letting up, with PVC and plasticizer costs up 19.2% and 26.7%, respectively year-to-date.

Since PVC is an oil based derivative, increasing oil prices are a significant variable in the rising PVC pricing.  Oil prices have jumped more than 6% since mid-March and 22.7% since July of last year, according to the U.S. Energy Information Administration.  As oil prices continue to climb, the price of vinyl is projected to as well.

Natural rubber latex prices closed the week over 740 sen/kg, up 21.5% since year-to-date and over 70% from this time last year (Source: Malaysian Rubber Board).