Karex, a Malaysian firm recognized as the globe’s foremost condom manufacturer (supplying brands such as Durex, One, and Carex), intends to raise the cost of its goods should supply chain disruptions stemming from the Middle East conflict persist. This information was conveyed by the company’s CEO, Goh Miah Kiat, during an interview with Bloomberg.
Goh anticipates that a price hike for condoms—ranging from 20% to 30%—will materialise over the coming months and impact the majority of the company’s clientele. Further cost escalation is also a possibility.
“We are implementing a price adjustment for the bulk of our customers, and this certainly represents one of the most substantial price reorganizations we have undertaken in a very considerable period,” he commented.
The company head specified that the confrontation involving Iran has disrupted the flow of essential materials: the price of petrochemical raw ingredients—ammonia utilized for latex preservation and ethanol for packaging—has increased, while the cost of nitrile latex has doubled, and silicone oil prices have climbed by nearly one-third.
Following the initiation of military action by the US and Israel against Iran, Tehran announced a halt to trade passing through the Strait of Hormuz, a vital artery through which approximately 20% of global oil and over 30% of LNG shipments transit. Later, Iranian authorities clarified that the strait remains accessible to all nations except the US and its allies.
Shortly after unsuccessful dialogues between Tehran and Washington on April 11th, American warships, under an order from President Donald Trump, commenced a blockade of the Strait of Hormuz. Iran subsequently reimposed a closure on shipping through the strait starting the evening of April 18th, following a brief period of reopening.
About the Author
