It is important to understand industrial upgrades and news about the price volatility of natural and synthetic materials for the production of gloves. Under development, an econometric model can be used to predict prices
Inflationary pressures indicate a longer term presence in China. US consumers bought cheap imported products because the Chinese currency was underestimated. This led to a large US trade deficit. The United States exports less foreign goods and supplies more American finished products due to the recent upward drift of imported goods
FXs play a key role in commodity prices. Against the dollar, the dollar grew by 28% in six years. The weaker dollar will help US exporters, but the stronger Yuan and the higher costs in China are going up the cost of US consumer goods.
The United States has recently reduced the number of imported oil barrels due to rising oil prices and weak demand. The volume of oil imports has been steadily downward since 2005, with the expectation that this trend will continue. High oil prices reduce fuel consumption while boosting production and result in lower imports and lower fuel prices
In parallel with rising natural rubber supplies in 2011, demand for natural rubber will drop due to a fall in car manufacturing losses in Japan and lower car demand in China . Fiscal tightening in China will result in a drop in rubber prices as the speculative demand for rubber is declining
Natural rubber was planted on a large scale between 2006 and 2007. 6 to 7 years to produce rubber trees. Supply is inflexible short-term and long-term supply will not increase significantly until 2013. According to the International Rubber Study Group, global natural rubber production is about 5% higher than in the previous year
In 2011, Chinese auto sales growth is expected to fall compared to the previous year. China has rescinded the preferential policy on shopping taxes and the car program of rural areas. 70% of the global rubber supply is used for tire manufacturing. According to the IRSG, the total global production of tires will fall to 2010.
Natural rubber prices have risen due to oil prices, the weakening US dollar and excess liquidity. As GDP growth declines in Europe, Japan, China and the United States, natural rubber demand will decline in the short term. As the price of latex gloves increases, the substitution effect increases demand for vinyl and synthetic gloves.
The latex prices generally follow crude oil prices. Given the current supply and demand of oil, crude oil market prices should be between $ 75-85 per barrel. Based on the decline in oil prices and the above factors, latex prices are moderate or stagnant during the year
Nitrile butadiene rubber (NBR) accounts for 68% of total synthetic rubber consumption in the world. Growth in demand for NBR – this increase is attributable to the production of NBR (nitrile) gloves. Approximately 60% of the material used to produce nitrile gloves is butadiene
Although latex gloves gave preference to the medical industry due to better flexibility and cheaper average sales prices, the demand for nitrile gloves increased. The export of synthetic gloves to the United States, the European Union, Japan, Canada, Australia, China and Brazil increased by 58% in 2010. High latex prices have made nitrile gloves cheaper and more attractive. Nitrile production techniques have advanced, closing the quality gap with the latex gloves. Latex allergy is a cause for concern. Given that nitrile prices are more stable than latex gloves, gloves manufacturers can better protect margins by controlling their inventory costs through the use of NBR
Supply problems have a negative impact on nitrile gloves and petroleum based vinyl gloves prices. Nitrile gloves are oil derivatives. Increasing raw material costs, transport and fuel surcharges have drastically increased over the last six months. Due to the increase in demand for NBR, manufacturers have experienced a shortage of raw materials. Japanese manufacturers have also been affected by recent earthquakes in Japan. Prices of nitrile gloves will approach.
This year, vinyl costs rose by nearly 25%. Due to the continuing high oil costs and the lack of synthetic materials, prices are on average between $ 3 and $ 4. Consumers of disposable gloves have increased their demand for vinyl since the prices of latex and nitrile gloves continue to exceed vinyl glove prices. By selling vinyl, the substitution effect exerts an upward pressure on the vinyl price and will continue to do so in the near future.
Source by sbobet