Disposable Gloves News

The effects of rising crude oil prices stretch far beyond freight costs. Down to the cost of raw materials, oil's effects impact nearly every stage of the supply chain. Consider for example that polyvinyl-chloride (PVC) resins, the primary component used to produce disposable vinyl gloves, is comprised of over 40% ethylene. A derivative of petroleum, ethylene costs virtually parallel the cost of oil.

Having already increased by more than 25% since the start of the year, PVC costs would be even further inflated had raw material producers not hedged petrol prices when oil was trading around $110/barrel. Still, despite the retreat in oil prices in recent days, oil is unlikely to return to the hedged price, meaning that further increases in raw material costs in the weeks ahead are nearly inevitable.

Read more:
If it has oil as ingredient, you're paying more for it
Current PVC prices

Labels: Oil, PVC gloves, Vinyl Gloves

posted by Michael Prather at 9:36 AM |