Anthrax fears lift glove demand, not rubber prices
Anthrax fears lift glove demand, not rubber prices
Vissuta Pothong, Reuters
The global anthrax scare is likely to increase demand for
rubber gloves, but the threat of recession looming over the world
economy will keep a lid on rubber prices, industry sources said
on Thursday.
Malaysia, Thailand and Indonesia are the world's top rubber
glove manufacturers, accounting for over 90 percent of the world
market share.
They are also the top rubber producers and exporters with a
share of almost 80 percent of world natural rubber production.
"The anthrax scare will increase demand for gloves, people are
getting fearful of biological warfare," Choosit Opaswongse,
president of the Thai Rubber Exporters' Association, told
Reuters.
In the United States, several anthrax-contaminated letters
have sparked fears of biological warfare in retaliation for U.S.-
led military strikes on Afghanistan.
Anthrax is a sometimes fatal disease that can be contracted by
breathing in the spores of the bacteria or having them in contact
with the skin.
Traders said more buyers were seen in the latex market in
recent days, but they were unsure whether the anthrax scare was
the reason.
"Recently, we have seen more and more buyers in the market,
looking to buy more latex for November-December shipment, and
they give better prices," said one trader at a major firm in
Singapore.
Malaysia is the world's top rubber glove manufacturer,
exporting 11.5 billion pairs in 2000. Thailand is the second
largest. Indonesia and India are the world's third and fourth
largest respectively.
Traders said rubber prices were not expected to rise
significantly given the weak global economy which has dampened
demand for sheet rubber.
"It is quite difficult for the rubber price to rise as the
whole world economy is not so good," said one trader based in
Singapore.
Latex rubber accounts for a small percentage of the global
rubber trade.
"It (the demand for gloves) is not expected to significantly
boost rubber prices considering the much reduced demand from the
auto industry due to the economic slowdown," Choosit said.
Each year, tire makers take up to 90 percent, in sheet form,
of rubber from producing countries, while the rest goes to other
manufacturers including the rubber gloves industry, traders said.
Thailand exports around 2.1 million tons of rubber each year,
of which 85 percent is rubber sheet and the rest latex.