Industrial Supplies Michigan – Amerisource Industrial Supply
Natural Rubber & Nitrile Raw Material Trends

Both materials are key components in the manufactur of unsupported, dipped and coated liquid and chemical resistent gloves.  These trends will affect the pricing of those categories of gloves. 

Natural Rubber: Since January, raw material costs have increased by 60%, due to high demand for rubber in the global vehicle industry, particularly in China, as well as reduced production levels. Raw material costs are 22.5% higher as compared to November 2008.A December 1 (2009) report indicated rubber output in Thailand, Indonesia and Malaysia had dropped more than 6% in 2009 after unusually heavy rains caused flooding. Some reports peg the decrease at more than 10%, causing speculation on a possible shortage in the early months of 2010, which could drive costs up by as much as another 20-30%. Supplies are likely to shrink further early next year during the dry wintering season in Thailand, the world’s largest producer, as trees shed leaves and latex output falls.

Source: Malaysian Rubber Board’s Price Index report (http://www2.lgm.gov.my/mre/YearlyAvg.aspx) average Dry Kg Bulk Latex, converted to USD

NITRILE Butadiene NBR: The cost of nitrile latex is mainly driven by the increase in butadiene, an important industrial chemical used as a monomer in the production of synthetic rubber. It makes up approximately 70% of the total materials cost of nitrile latex. The cost of butadiene has increased by 221% from January to October (2009), and with the weakened dollar, the increase has been dramatically exacerbated. According to ICIS, the butadiene market shows no indications of making a recovery in the near future.

Below please find a chart to visually depict this increase. Source: ICIS

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