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March 16, 2021 11:42 AM

NR latex prices 'substantially higher' as gloves demand surges

European Rubber Journal Report
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    KUALA LUMPUR, Malaysia—NR Latex prices are substantially higher thanks to short supply, high demand from glove manufacturers and nitrile supply issues, according to the Association of Natural Rubber Producing Countries.

    Latex rubber supply was "abnormally low" during the month of February, according to a March 4 market intelligence report by ANRPC.

    "Rubber glove manufacturers are reportedly struggling to deliver the huge orders of rubber gloves they had committed about six months earlier," the report noted.

    Also contributing to the shortage was China's total layoff of harvesting during the month, resulting in no domestic production of natural rubber in the country.

    "The situation compelled the glove manufacturing companies in China to source their entire demand for NR latex from overseas by offering higher prices," the ANRPC noted.

    In addition, higher crude oil prices and the supply disruptions in the petrochemical industry world over made nitrile more expensive and less attractive to the glove manufacturing industry.

    According to ANRPC, the Kuala Lumpur local market saw NR latex prices jump 21.7 percent within the few days between Feb. 15-26.

    Furthermore, the spike in latex prices permeated into other forms of NR as farmers converted to selling the produce in the form of fresh latex instead of disposing in the form of cup-lump or sheets.

    Related Article
    Malaysian Rubber Board: Natural rubber prices set to hold recent gains
    ANRPC: Natural rubber prices set to gain in short-term
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