Condom maker warns prices may rise due to Iran war supply disruptions
Summary
A Malaysian condom maker, Karex, said it might increase its prices because the war in Iran is causing problems with getting materials and shipping products. The company faces higher costs for synthetic rubber and delays in deliveries, which could lead to a 20% to 30% price rise.Key Facts
- Karex is based in Malaysia and is the world’s largest condom maker, producing 5 billion condoms a year.
- The Iran war has disrupted global supply chains, especially through the Strait of Hormuz, which affects energy and petroleum-based products like synthetic rubber.
- Karex’s input costs for some materials have doubled, and freight costs and shipping delays have increased.
- Normally, Karex’s shipments to places like Europe and the U.S. take about one month; now they take nearly two months.
- Karex supplies condoms to brands like Trojan (U.S.) and Durex (U.K.).
- Demand for condoms has risen about 30% this year despite supply issues.
- Karex may raise prices by 20% to 30% if supply disruptions continue.
- Petrochemicals from oil and gas are used in many everyday products beyond condoms.
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