MARGMA Forecasting 35-45% Increase for Disposable Rubber Gloves

Anticipating a Surge: MARGMA Foresees 35-45% Increase in Disposable Rubber Gloves

The Malaysian Rubber Glove Manufacturers Association (MARGMA) predicts a substantial surge, ranging between 35-45%, in the prices of disposable rubber gloves. This projection follows a series of notable increases in the cost of natural rubber latex and the main ingredient in nitrile latex, butadiene.

Unprecedented Rise in Latex Prices

As of January 17, 2017, the average price of natural rubber latex has witnessed a remarkable escalation, soaring from RM4.56 per wet kilo in September to an alarming RM7.15 per kilo. MARGMA attributes this sharp rise, approximately 45%, to relentless heavy rains and flooding in specific regions, severely impacting natural rubber product availability. The association warns that prolonged flooding and limited raw material stock may lead to even more significant shortages, contributing to a potential further spike in prices.

Potential Doubling of Retail Glove Prices

MARGMA estimates that glove prices should have already increased by US$1 to US$1.50 per 1,000 pieces from September to the end of the previous year. Furthermore, the association anticipates an additional surge of US$1.50 to US$2 per 1,000 pieces starting January 2017, aligning with the considerable rise in natural rubber latex costs.

Rising Costs of Butadiene and Nitrile Latex

The main component of nitrile latex, butadiene, has experienced a surge in cost, rising from US$950 per tonne in September to US$2,870 per tonne in mid-January. Several plant closures and increased demand from China’s motor car industry contribute to the scarcity of butadiene. This scarcity prompts a rise in the average selling price of nitrile latex, which escalated from US$946 per tonne in September to US$1,140 per tonne in early January. Forecasts suggest an additional increase of up to US$250 to US$350 per wet tonne for February delivery.

MARGMA’s Advice to Distributors

Given the volatile and sharp increases in costs, MARGMA advises its members to reflect these changes in their glove prices. Distributors are urged to frequently revise pricing to stay aligned with the almost daily fluctuations in rubber and butadiene prices. MARGMA cautions against setting prolonged validity periods on pricing to prevent potential losses.

Scrub-n-Shine: A Competitive Solution

Despite these challenges, Scrub-n-Shine assures its clientele of competitive pricing and multiple sources for disposable gloves. Contact us to discuss your disposable glove needs, and let us navigate through these market dynamics together.

About MARGMA

The Malaysian Rubber Glove Manufacturers Association (MARGMA) is a prominent association that represents the interests of glove manufacturers in Malaysia. With a commitment to excellence, MARGMA plays a crucial role in the global rubber glove industry.