The world’s largest condom manufacturer and a leading rubber glove maker have increased prices due to supply chain disruptions caused by the Middle East war, both Malaysian-based companies said on Friday.
Karex, which supplies condoms for brands including Trojan and Durex, has raised prices by up to 30%, while global supplier Top Glove said the main material for synthetic rubber gloves has doubled in cost.
Malaysia’s rubber industry relies heavily on oil to produce goods, but supply has been limited since Iran imposed a de facto closure of the Strait of Hormuz. Around one-fifth of global crude and liquefied natural gas passes through the strait in peacetime.
The closure, which began after the United States and Israel launched strikes on 28 February, 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 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%,” Goh told AFP in an email.
A crucial raw material affected is silicone oil, which is “used in every condom”, Karex said.
Karex produces more than 5 billion condoms annually, helping to prevent unintended pregnancies and sexually transmitted diseases globally. The company supplies condoms to organisations including Britain’s National Health Service and the World Health Organisation.
Prices of other Karex products, from personal lubricants and probe covers to catheters and aluminium foil packaging, have also increased, Goh said.
Costs have been affected “across the board”, including the price of condom materials nitrile latex and natural rubber.
Top Glove, one of the world’s leading manufacturers of rubber gloves, said it was particularly affected by a sharp increase in the price of nitrile butadiene rubber, “which has increased by more than 100%, reflecting tight supply”.
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“For natural rubber gloves, input costs have risen by approximately 30%, as natural rubber is a traded commodity which is impacted by the uptrend in crude oil prices,” the company said.
Top Glove supplies 95 billion gloves per year to more than 2 000 customers worldwide.
Both manufacturers said the supply of their main products remained 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 said.
