Monday, May 16, 2011

Cotton and Latex Prices Rise, Manufacturers Follow

Almost daily, we can read news headlines and price indices that show increasing commodity prices. These levels are well beyond the initial 2011 expectations. Raw materials, such as cotton and latex have been particularly hard hit. The U.S. cotton projections for 2011/2012 include lower supplies relative to last season therefore the forecast range for the average price received by producers is a record 95.0 to 115.0 cents per pound. World cotton projections show a sharp increase in production, mainly reflecting higher import demand by China. Latex prices have risen more than 8% since the beginning of 2011, and continue to fluctuate with predictions that they still have not peaked. These market dynamics have resulted in all major PPE manufacturers announcing price increases for the second time this year with most not guaranteeing pricing beyond a three-month horizon. Arbill understands the impact that cost increases can place on your business and we will continue to drive initiatives that focus on cost reduction reduction opportunities while keeping your employees safe. I will continue to update you on the commodities markets and how is is affecting the safety supply chain for the remainder of the month of May.

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