Overview
- Karex, which told Reuters on Tuesday it will raise prices, expects a 20%–30% increase with further hikes possible if disruptions persist.
- Input prices have jumped for petroleum-based materials such as silicone oil, nitrile latex, natural rubber and foil, with reports citing silicone oil up about 30% and nitrile latex doubling as feedstocks from the Middle East run short.
- Shipping to Europe and the United States now takes about two months instead of one as vessels reroute or queue near the Strait of Hormuz, leaving large volumes stuck at sea and pushing up freight costs.
- Demand is up roughly 30% this year while Karex says it has inventory for only the next few months, and prior cuts to foreign-aid procurement have thinned buffers that many developing countries rely on.
- Karex makes over five billion condoms a year for brands like Durex and Trojan and for the UK’s NHS and UN programs, so higher prices could strain public health budgets and reduce access.