There is important breaking news regarding glove prices that may directly impact consumers throughout the year, especially in this first quarter. Inform yourself on what to expect for you, your business, and your employees.
TOCOM Rubber hits 4-year High with Supply Worries
Mid January marked Tokyo rubber futures reaching their highest levels in nearly four years caused by rainy seasons in Thailand, which are causing supply shortages. This in turn directs the Tokyo Commodity Exchange, the leader for rubber prices in all of Southeast Asia. As of mid-January, the price for rubber on the TOCOM reached $2.70, which is the highest since early 2013. We’ve also seen that the most active rubber contact on Shanghai’s futures exchange rose 5.6%, also affecting rubber prices.
Thailand is the top rubber producer in the world. Heavy rains and flooding are persisting near rubber factories in Thailand, which has disrupted rubber tapping and will decrease worldwide natural rubber output in the first 3 months of this year.
Asian butadiene-naphtha hits 7-year High
At the end of January, Asia saw its butadiene-naphtha price hit the highest its ever been in seven years; $2,557.38/mt compacted by severely tight global supply and increased demand for downstream products like styrene-butadiene-rubber, and others. Much of the supply trouble and rising costs may be attributed to a decline in deep sea cargo availability from the US and Europe.
Across Southeast Asia, butadiene is extracted, sourced, and converted with a price tag of $300-$500/mt. At least 3 butadiene extraction units in Southeast Asia are scheduled for routine maintenance between January and March. And in Northeast Asia, an extraction unit will be closed from February to April. All this means that prices will rise because the cost to extract and convert needed material will be more expensive than the finished product.
It is important to stay informed as a consumer, and we hope to continue providing you the resources you need throughout the year to protect yourself and your employees.