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Nitrile Examination Gloves
Powder free high quality nitrile gloves
Conforming to European Standards CE Marked
Disposable Nitrile Examination Gloves
Made from low particulate synthetic material
100% pure nitrile
Comfortable to wear
It is a well known fact that all the production space available with glove manufacturers has now been bought up and booked by various brokers and/or distributors. Consequently, with the worsening pandemic through the coming autumn and winter months, it is very much a sellers market, thus effecting price and availability. Please see below the report from AMPri.
Supply situation in Thailand, Vietnam, Malaysia, Indonesia and Sri Lanka.
As already announced in previous situation reports, a shortage of raw materials exists primarily due to purchases by Chinese speculators. They are currently buying up the quantities ordered from glove suppliers in other countries for substantially higher prices. The material is put into temporary storage and is then sold to Chinese manufacturers of nitrile gloves, who are working to upgrade their factories. These shortages, combined with raw material speculation, will unavoidably lead to drastic price increases. It is currently still an open question just how large these price increases will be. Price trends are already completely out of control and do not correspond to our understanding of the market, but we experienced a similar situation a short time ago with regard to face masks. During the pandemic, prices increased twenty to twenty-five-fold! It is hoped that this will not be repeated with regard to gloves.
With a view to the current situation, the countries in this report have therefore decided to completely close their borders until 31 December 2020. It is assumed that this will significantly reduce the spread of the coronavirus in these countries. If there were to be supply restrictions or a shutdown in one country or another, this would bring the already pressured supply situation to a standstill. Statistically, demand for gloves is expected to increase by a further 30% in 2021.
In contrast, it will only be possible to increase the already limited supply of the raw material nitrile in production by 5%. This statistic, alone, indicates that the year 2021 will not be better, in any case. Even the availability of a vaccine could not bring about a complete turnaround; it will undoubtedly take several months to distribute any such vaccine around the globe.
Furthermore, the hygiene awareness of people worldwide has changed enormously over the last few months, and hygiene rules related to the use of gloves, disinfectants and face masks will continue to apply. Creating short-term capacity, which would lead to an easing of the situation, does not appear to be feasible at the moment. Suppliers seem to be increasingly adjusting to the fact that they can sell products at double-digit prices for a box of 100 units. They are now seeking to lock purchasers into fixed contracts, so that they can protect themselves against a future drop in prices.
In the meantime, we are frequently being asked for a deposit as a guarantee, which will remain with the supplier for the whole of 2021 and will only be offset against deliveries in December 2021. The supplier can, of course, also have the sharp rise in raw material prices financed by us through a corresponding advance payment. At the present time, the procurement of raw materials primarily concerns ensuring delivery, as far as possible. Extraordinary situations can, of course, occur at any time and destroy the best-laid plans.
We are attempting to ensure delivery for 2021 through daily contact with manufacturing sites, but no one is willing to provide a guarantee of this. With regard to the prices, we will have to prepare ourselves for further major adjustments. The supply situation in China (with the exception of gloves) has largely normalised, meaning purchase prices are now in an acceptable range. This does not mean that pre-Covid-19 prices can be achieved, but that, due to the Chinese New Year, prices will once again move in that direction. In the meantime, the situation regarding face masks has developed in such a way that stronger checks are being carried out by the authorities in Germany. These involve strict controls of documentation regarding type II, type IIR and the European standard. It is recommended not to buy any goods for which proper certificates cannot be provided.
And now, one final remark concerning gloves. In the meantime, a large number of suspicious offers are circulating. Certificates are being advertised and quantities are being offered that even we cannot procure today. The prices are frequently below current market prices and it is thus suggested that large quantities can be provided at very favourable prices. However, in many cases such offers are unfortunately untrustworthy, and are designed to solicit advance payments for deliveries that are not subsequently made.
Often, the name of the manufacturer is used to emphasise a certain respectability. Many suppliers are being confronted with this, and have thus compiled a list of companies on a website whose offers are usually ‘fake’. We can only recommend that such matters be handled with extreme caution. We, ourselves, have already been frequently affected by this and have repeatedly filed charges against unknown persons. Our certificates are being used for advertising purposes, and it has even gone so far that my name was copied into a German passport in order to convey an air of credibility. If you are confronted with such offers, and if you are unsure how to handle the matter, we would be happy to help. Please don’t hesitate to get in touch. If needed, we will then pursue the matter further!