A recent article in Bloomberg reported the raw material costs of nitrile gloves have jumped 45% since September 2016.
The auto industry is the biggest user of butadiene (synthetic rubber), used specifically in the manufacture of car tires.
Butadiene also constitutes around 70% of total nitrile glove costs.
With car sales in China almost doubling in the last year, the subsequent sharp increase in butadiene price has been passed onto glove manufacturers, who in turn are passing these rising costs to suppliers and consumers.
"Surging car sales in China have increased the price of butadiene, which constitutes around 70% of nitrile glove costs"
The President of the Malaysian Rubber Glove Manufacturers Association, which produces more than half of the world’s rubber gloves, has indicated the price of nitrile gloves will have to increase by about 10-12%.
Eagle has over the years maintained a determined effort to keep prices level so our customers could reliably forecast their budgeted spending. We will endeavour to continue to do this and as such will be absorbing the cost increases for the foreseeable future.