Disposable Gloves » Pricing Trends

ANRPC Director: High rubber prices may linger

Adam Bowers — Fri, 14 May 2010 15:56:10 +0000

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

Global demand for latex still outpacing supplies

Adam Bowers — Fri, 30 Apr 2010 13:11:23 +0000

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

Vinyl Prices Increasing Steadily

Adam Bowers — Tue, 27 Apr 2010 15:15:19 +0000

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.

Latex production improves, but supplies still slow to market

Lindsay Nemastil — Thu, 04 Mar 2010 19:08:48 +0000

Months after first beginning their climb, natural rubber latex prices continue to hover near record levels set earlier this month closing at 742 sen/kg Thursday (Source: Malaysian Rubber Board). Despite improved production, supplies have been slow to reach the market in recent weeks as dealers hold stock in anticipation of higher prices.

Driving the higher prices:

- Weakened supplies due to lower winter season production
- Stronger than anticipated global economic recovery
- Increased demand from the Chinese automotive industry
- Rising crude oil prices

Natural rubber latex price pushes past 740 sen/kg; up 21.5% since January 1

Michael Prather — Fri, 26 Feb 2010 20:00:37 +0000

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).

Latex rubber price closes above 700 sen/kg for first time since ‘08

Michael Prather — Thu, 11 Feb 2010 14:45:54 +0000

Natural rubber latex prices surpassed 700 sen/kg today to close at 703. The rally marked the first time prices closed above the 700 milestone since July 2008, when rising oil prices, new regulatory standards, and factory shutdowns sent disposable glove prices soaring to record highs.

Natural rubber supplies down 5% in 2009; experts predict further drop

Michael Prather — Mon, 08 Feb 2010 14:32:34 +0000

Natural rubber supplies dropped more than 5% in 2009, according to a report published by the Association of Natural Rubber Producing Countries. The four largest rubber producing countries–Thailand, Indonesia, Malaysia, and India–all experienced declines in production. In Malaysia alone, production fell more than 22%.

Experts expect prices to remain high, with demand surging and supplies predicted to remain low as producers fight difficult climate conditions. With producers enjoying the high prices, few believe intervention will come even if prices escalate further.

A key material used to produce latex gloves, natural rubber latex prices directly impact glove prices. Rising natural rubber latex prices can also impact the price of synthetics, such as nitrile gloves, as buyers seek more cost-effective alternatives in lieu of latex.

Poly glove manufacturers facing higher raw material costs

Michael Prather — Thu, 04 Feb 2010 18:59:52 +0000

Driven by rising ethylene costs and weakened supplies, polyethylene prices have climbed nearly 8% this year, according to an article published in Purchasing. Recovering demand has been stymied by factory shutdowns and cold temperatures, which hampered January ethylene production.

Polyethylene producers continue to seek further increases, but with added ethylene capacity expected online in the next several months, it remains unclear whether these increases will materialize.

Natural rubber latex prices approaching 700 sen/kg

Michael Prather — Fri, 22 Jan 2010 14:43:04 +0000

Malaysian natural rubber latex prices ended the week up about 4.5% from the week before, trading at 696.50 sen/kg Friday. For the year, prices have soared over 13%, according to the Malaysian Rubber Board.

NR Latex prices continue down familiar upward path

Michael Prather — Fri, 15 Jan 2010 14:26:59 +0000

Last Friday we reported natural rubber latex was trading at 637 sen/kg. Today, the trading price has jumped to 666.50–a 5% increase from just one week ago, according to the Malaysian Rubber Board. Supplies from the world’s eight largest producers had fallen by 6.4% for the year as of November 2009 (Association of Natural Rubber Producing Countries). In Malaysia and Thailand, the world’s two largest natural rubber producing countries, 2009 production was off by 25% and 10% respectively.

Despite reports that many latex glove manufacturers have already issued price increases, more may be on the way. Natural rubber latex prices are typically a lagging indicator of latex glove prices, since most manufacturers stock at least 30 days of raw materials.