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.