8
Feb

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

Filed under: Pricing Trends — Michael Prather @ 10:32 am

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.

4
Feb

Poly glove manufacturers facing higher raw material costs

Filed under: Pricing Trends — Michael Prather @ 2:59 pm

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.

3
Feb

Freight forwarders warn of cargo delays from China

Filed under: Supply & Distribution — Michael Prather @ 10:29 am

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.

Read more on the Chinese New Year headaches from the Journal of Commerce

1
Feb

Vinyl, poly glove factories to close for Chinese New Year

Filed under: Supply & Distribution — Michael Prather @ 9:37 am

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.

22
Jan

Natural rubber latex prices approaching 700 sen/kg

Filed under: Pricing Trends — Michael Prather @ 10:43 am

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.

Further reading:

Rubber price at 2-year high on tight supply
Malaysia happy with current rubber prices

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