It is crucial to understand the industry and updates of the news about the fluctuations in the prices of natural and synthetic materials, necessary for the production of gloves. Development is an econometric model to be used for the prediction of the price.
Inflationary pressures showed signs of becoming a presence in the long term in China. American consumers bought goods imported good markets because the Chinese currency has been kept undervalued. This has led to large U.S. trade deficits. The United States consume fewer goods abroad and ship the products manufactured by the drift to the recent increase in the prices of imported goods.
Currency play a key role in the prices of raw materials. The Yuan is an increase of 28% against the dollar in six years. The weakness of the dollar helps U.S. exporters, but the stronger and higher Yuan within China to press the increase on the cost of the goods for U.S. buyers.
Recently, the United States has decreased the number of barrels of oil imported, due to the increase in demand for low and the price of oil. The amount of oil imports moved downward since 2005 in anticipation of this trend. The high price of oil reduced consumption while increasing production, less imports and lower fuel prices.
With an increase in 2011 in natural rubber supply, demand for natural rubber will subside because of a setback of the automobile production at the Japan and a decrease in demand for automobiles in China. China fiscal tightening will result in rubber prices to reduce speculative demand for rubber subsidies.
Natural rubber trees were planted on a large scale in 2006-2007. It takes 6 to 7 years for trees to rubber produce amps. The supply is inelastic in the short term and long term procurement will not significantly increase until 2013. According to the study group International rubber world natural rubber output is about 5% per year.
In 2011 the growth of China's auto sales should decline year. China cancelled the preferential policy of the tax on purchases and car for rural grants program. 70% of the global supply of rubber is used for the production of tires. According to the IPCC, the total world production of tires will be low in 2010.
Natural rubber prices have soared because of oil prices, the weakening of the US dollar, and excess liquidity. Given that the growth of GDP is declining in Europe, the Japan, China and the United States, demand for natural rubber decrease in the short term. The price of latex gloves increases, the substitution effect increases the demand for vinyl and synthetic gloves.
Latex prices generally follow the price of crude oil. In view of the offer and the current demand for oil, the market price of crude oil should be between $75-85 a barrel. Based on a moderation in prices of crude oil and all the factors above, latex moderate prices or remain flat for the year.
The nitrile rubber butadiene (NBR) is now 68% of the total consumption of synthetic rubber in the world. The application of NBR is skyrocketing - this increase is attributable to the production of gloves NBR (nitrile). About 60% of the material used to produce nitrile gloves is butadiene.
Although latex gloves have been the first choice for the medical industry because of the better elasticity and sale price of the means cheaper, nitrile gloves demand has increased. Exports of synthetic gloves for the United States, the European Union, Japan, Canada, Australia, China and Brazil increased by 58%-year in 2010. LaTeX prices were cheaper and more attractive nitrile gloves. Nitrile production techniques have advanced, the gap in quality with latex gloves. Latex allergy is also a source of concern. Given that prices for nitrile have been more stable than the LaTeX glove manufacturers can better protect margins by controlling their costs of inventory using NBR.
Supply issues negative price impact of petroleum-based vinyl gloves and nitrile gloves. Nitrile gloves are derived from oil. Contents first cost increases, transportation and fuel surcharges have increased dramatically over the last six months. Given the increase of the NBR demand, manufacturers have experienced shortages of raw materials. Japanese manufacturers have also been affected by recent earthquakes in the Japan. Nitrile gloves prices will increase in the short term.
This year, vinyl costs have increased by 25%. With the continued high cost of oil and a shortage of synthetic materials, prices have increased an average of $3 to $ 4 a case. Disposable gloves consumers increased their global demand for vinyl latex and nitrile glove prices continue to exceed the price of vinyl glove. By exchanging vinyl, the substitution effect pressure rising on the prices of vinyl and will continue to do so in the short term.
Rob M Brown, President of gloves by Web (a division of Auric Enterprises) offers its expertise in forecast prices of natural rubber.
