Disposable Gloves

Asian Freight Backlog Forcing Delays, Higher Rates

Lindsay Nemastil — Mon, 08 Mar 2010 16:36:17 +0000

Despite the Chinese New Year celebration coming to a close, a backlog of Asian freight persists. Despite heavy demand generated by the recovering global economy, capacity is down between 30-45% from this time last year according to one freight forwarder. Reports from several Chinese ports suggest ships are sailing above capacity, and experts predict it may take months before backlogs clear.

With limited space, shippers have been forced to pay elevated rates to secure cargo space aboard overbooked ships. New rate increases as high as 15% took effect March 1, but with carriers eager to recoup loses from 2009, more increases likely loom ahead.

OSHA, NIOSH budgets increase as part of appropriations bill

Lindsay Nemastil — Fri, 05 Mar 2010 14:05:43 +0000

President Obama has approved legislation to increase the budgets to two of the key government agencies responsible for ensuring occupational safety. The appropriations bill, signed into law in December, will increase 2010 OSHA and NIOSH budgets by 8% and 5%, respectively. According to Safety + Health magazine, the agencies expect to use the additional funds to hire compliance officers and expand pandemic flu preparedness.

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.

Freight forwarders warn of cargo delays from China

Michael Prather — Wed, 03 Feb 2010 14:29:22 +0000

Driven by reduced cargo capacities following the global economic slowdown, the logistical challenges created by the Chinese New Year have shifted from burdensome to problematic. One freight forwarder reports cargo bookings in Shanghai currently exceed capacity by a rate of nearly 3:1. Some freight carriers, eager to recoup money lost in difficult 2009, are refusing cargo unless surcharges as high as 40% are paid. In some instances, containers already loaded onto vessels have even been removed in exchange for a highest bidder.

It is expected that freight carriers shipping from China will remain overbooked for at least the next several weeks.

Vinyl, poly glove factories to close for Chinese New Year

Michael Prather — Mon, 01 Feb 2010 13:37:55 +0000

Glove factories throughout China will close beginning February 13 in observance of the Chinese New Year. For many migrant workers, the week long break offers the rare opportunity to return home.

For importers, however, the New Year presents challenges, as failure to plan ahead could result in supply shortages. Even for those planning ahead, the annual closures are often a source of logistical headaches, with Chinese ports jammed as importers and exporters rush to ship product in time to avoid delays.

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.