Update on the delivery situation of Nitrile Gloves
The strained situation continues.
We still see a very strained situation regarding the supply of our long and more complex Nitrile gloves, - EcoShield (green) and ShieldSkin Orange 260 and 300 (orange).
Seen from a global perspective the need for basic, short (240 mm) Nitrile gloves continues to grow without the production capacity increasing in the same pace. The situation is even more difficult due to the fact that several factories in the past 3 months, have been forced to temporarily shut down due to Covid-19 outbreakes among the employees.
The increased need for short gloves on the world market means that the capacity for longer, more complex gloves is reduced in favor of production of the basic 240 mm gloves.
In addition to this there are major problems with the shipping of containers from Malaysia which leads to sharply increased costs and months of delay as a consequence
The prognosis is that it will take a very long time for the market to recover.
Please see recently published article in New Straits Times:
Global rubber glove shortage to last beyond March 2022 | New Straits Times (ampproject.org)
What does this lead to?
Under current conditions it is very hard to predict when we again will have gloves in stock. All customers with orders confirmed in our system will be contacted in good time before delivery. Once a container is loaded and ready to ship it takes 6-8 weeks before it reaches us and we will then get a good overview of the situation in good time to reach out with the information to our customers.
As the needs have increased, also has the pricing. The price of the raw material Acryolnitrile butadiene has in just the last 2 months gone up with 30% and this leads to an instant price increase of the end product. There are also increase transport costs, we can see an increase of 200% in the last 10 months. Unfortunately, we expect this is a trend that will continue during in the future as long as the pandemic continues. We know will get increased prices for the deliveries we are expecting in the near future. We only know how big the price increase will be when the gloves are on their way.
We are well aware of the situation being very unfortunate and we work hard to reach the best agreements we can to be able to deliver gloves based on the increased needs.
Nordic Biolabs AB