The current high global demand for medical gloves and the limited supply of natural rubber (NR) are expected to further boost commodity prices this year.
Global demand for medical gloves has hit a critical level as some countries are badly hit by the bird flu and are running out of stock.
However, natural rubber producers have been badly affected by the continuous heavy rains and flooding experienced in some areas, said Denis Low Jau Foo, president of the Malaysian Rubber Glove Manufacturers Association (MARGMA).
“There is limited stock of raw materials and it is only a matter of time before shortages will be severely felt, and if prolonged, may cause natural rubber prices to rise further,” he said.
The NR latex average price currently stands at RM7.15 per wet kg today as compared to RM4.56 per wet kg in September 2016, which is a serious and sharp rise of about 45% from September to January, Foo said.
In a recent statement, MARGMA said it is optimistic of the usual 8% to 10% annual growth for medical gloves and expects higher revenue due to higher selling prices.
MARGMA members have previously increased the selling prices of gloves by US$1 to US$1.50 from September to December 2016. He expects higher raw material prices to be costed into nitrile glove prices by about US$2.50 to US$3.50 starting January 2017.
“It is a moving target and even higher prices are more likely in the days ahead,” he said.