Condom prices to swell over supply disruptions due to Iran war
· Toronto Sun
The prices of rubber products are surging dramatically, according to condom and glove manufacturers, which are blaming on supply chain disruptions stemming from the war in Iran.
Karex, the world’s largest condom maker which supplies condoms for brands like Trojan and Durex, said it had to raise prices by up to 30%, while global supplier Top Glover, said the main material for its synthetic rubber gloves has doubled in cost.
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Much of the rubber industry in Malaysia, where both companies are based, relies on oil to produce goods, but supply has been scarce since Iran shut the Strait of Hormuz.
Costs of raw materials hit hard
The closure, which began after the United States and Israel launched strikes nearly two months ago, has also affected raw material costs and disrupted global shipping.
“We continue to experience longer lead times from suppliers, increased price volatility and higher freight costs,” Karex chief executive Goh Miah Kiat said in an email to AFP .
“In the meantime, we are also holding more key raw materials critical for business operations, and hence requiring the need to increase costs by up to 30 per cent.”
Silicone oil, one of the aforementioned crucial raw materials, is “used in every condom,” according to the company, which noted that costs have been affected “across the board,” including the price of condom material nitrile latex and natural rubber.
“The situation is definitely very fragile, prices are expensive,” Goh told Reuters . “We have no choice but to transfer the costs right now to the customers.”
Karex makes more than five billion condoms annually, and provides condoms to organizations such as the World Health Organization and the U.K.’s National Health Service to help prevent unintended pregnancies and sexually transmitted diseases around the globe.
Goh noted that more condoms are “actually sitting on vessels that have not arrived at their destination but are highly required,” Goh said, pointing out that many developing countries do not have enough stock because it takes time for the products to reach them, per Reuters .
The prices of other Karex products, including its personal lubricants, probe covers to catheters, and aluminum foil packaging, have also increased, Goh said.
Costs have been affected “across the board”, including the price of condom material nitrile latex and natural rubber.
‘Tight supply’
Meanwhile, Top Glove, pointed toward the spike in the price of nitrile butadiene rubber as the main source of its pain due to it skyrocketing in price “by more than 100 per cent, reflecting tight supply,” they said, per AFP .
“For natural rubber gloves, input costs have risen by approximately 30 per cent, as natural rubber is a traded commodity which is impacted by the uptrend in crude oil prices.”
Top Glove supplies 95 billion gloves per year to more than 2,000 customers worldwide.
Both manufacturers assured their supply remains stable.
“However, longer ship lead times are causing lower inventory levels at our customers’ end, and certain condom manufacturers are facing challenges in production,” Goh noted of the Karex products.