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From: Denc 🗡
Maybe what FTD was worried about….. World’s biggest condom maker warns of price rises because of Iran war Karex says it has stockpiled supply to meet demand for the next few months The world’s biggest producer of condoms is preparing to raise prices by almost a third after the Iran war sent costs soaring. Karex, which supplies condoms to brands such as Durex and Trojan, warned that disruption caused by the Strait of Hormuz’s closure has already led to planned price increases of between 20pc and 30pc. However, it said this could increase further if the Middle East conflict drags on and the crucial trade route remains closed. Most condoms are made of latex, which is a form of rubber produced using petrochemicals from Middle East supply chains. The price of rubber has jumped 8.5pc in the last month, fuelled by increases in the price of oil. Goh Miah Kiat, Karex’s chief executive, said the company had “no choice” but to pass costs on to customers. “The situation is definitely very fragile, prices are expensive,” he said. The closure of the Strait, which has been effectively shut for two months and is still subject to a blockade by the US navy, is expected to pile further pressure on consumer goods reliant on petrochemicals. Karex, which sells five billion condoms each year, said that it had seen costs increase across its supply chain. Packaging materials and lubricants – such as silicone oil and aluminium foil – had also risen in price. Mr Kiat said Karex had enough condoms stockpiled to meet demand for the next few months, and would boost output to meet demand caused by US government funding cuts for foreign aid. Last year, Donald Trump’s administration cut funding of the US Agency for International Development by 92pc, equivalent to $54bn (£43bn). It said the cuts were part of an “America First review of spending”. Mr Kiat said demand for condoms had surged by 30pc this year, and warned of shortages caused by shipping disruptions. The Malaysian company’s shipments to Europe and the US are now taking close to two months to arrive, twice as long as before Mr Trump’s war in Iran. “We’re seeing a lot more condoms actually sitting on vessels that have not ⁠arrived ​at their destination but are highly required,” he added.

Current Thread	Author	Time
Maybe what FTD was worried about….....[more]	Denc 🗡	00:48:14

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