The world’s biggest producer of condoms is set to raise prices by almost a third, adding to the list of companies and lines of production being impacted by the war in Iran and disruption in the Middle East. Karex, which supplies condoms to major brands including Durex and Trojan, said disruption linked to the closure of theStrait of Hormuzhas already forced it to plan price increases of between 20% and 30%.

The company warned prices could climb even higher if theconflict in the Middle Eastcontinues and the key trade route remains blocked. Most condoms are made from latex, a form of rubber produced using petrochemicals linked to Middle East supply chains. Rubber prices have already jumped by 8.5% in the past month, driven by rising oil prices. Speaking to Reuters, Goh Miah Kiat, Karex’s chief executive, said the company had “no choice” but to pass the higher costs on to customers. He added:“The situation is definitely very fragile, prices are expensive,". The Strait of Hormuz, which has effectively been shut for two months and remains subject to ablockade by the US Navy, is expected to heap even more pressure on consumer goods that rely on petrochemicals.

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Karex, which sells five billion condoms a year, said costs had increased right across its supply chain.

Packaging materials and lubricants, including silicone oil and aluminium foil, have also become more expensive.

Kiat told Reuters that, alongside higher costs for manufacturing and packaging condoms, this has added to delays in shipping.

Mr Kiat said Karex had enough condoms stockpiled to meet demand over the next few months and planned to increase output to cope with demand triggered by US government cuts to foreign aid.

Last year,Donald Trump’s administration slashed funding for the US Agency for International Development by 92%, equal to $54bn (£43bn). It said the cuts were part of an “America First review of spending”.

Mr Kiat said demand for condoms had surged by 30% this year and warned shortages could emerge because of shipping disruption.

Source: Daily Express :: World Feed