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Global condom and lube prices set to surge as Iran war disrupts supply chains

The world’s largest condom manufacturer, Malaysia’s Karex Bhd, has announced plans to increase prices by 20% to 30% due to ongoing supply chain disruptions caused by the Iran and Middle East war. The conflict, which began in late February, has driven up costs for essential materials such as synthetic rubber, nitrile, packaging, and lubricants, forcing the company to pass these expenses on to customers.

Karex, which produces over five billion condoms annually, supplies major brands like Durex and Trojan, as well as health systems such as United Kingdom’s National Health Service (NHS) and United Nations aid programmes. 

The company’s CEO, Goh Miah Kiat, described the situation as “very fragile,” noting that shipping delays have left many customers with depleted stockpiles. Shipments to Europe and the United States now take nearly two months, double the usual time, exacerbating global shortages.

The price hike comes amid broader supply chain challenges in the petrochemical sector, with materials like ammonia, ethanol, and silicone oil, critical for condom production, becoming scarcer and more expensive. The blockade of the Strait of Hormuz has further strained logistics, affecting both raw material procurement and product distribution.

Karex currently has enough supplies to last a few months and is ramping up production to meet rising demand. However, analysts warn that prolonged disruptions could worsen contraceptive shortages, particularly in developing countries already impacted by cuts to foreign aid, such as those from the US Agency for International Development.

The condom industry’s struggles reflect wider economic pressures, with companies like Reckitt Benckiser, the maker of Durex, estimating additional costs of up to €173 million due to soaring oil prices. As the conflict continues, the ripple effects on global health supplies are expected to intensify.

On the effects on the Strait of Hormuz conflict

🇧🇪 Blogger, keen vexillologist, train conductor NMBS/SNCB, traveller, F1 follower, friend of Dorothy.

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