Impact of the Iran Conflict: Condom Prices Surge Amid Raw Material Shortage, Says World’s Largest Manufacturer
Image source, Reuters
The CEO of Carrex, the world’s largest condom manufacturer, has announced that due to disruptions in raw material supply caused by the Iran conflict, the prices of their products are expected to rise by at least 30 percent.
Go Mia Kiatt, Chief Executive Officer of Carrex, told the media that production costs have surged abruptly since the onset of the conflict.
Based in Malaysia, Carrex produces over 500 million condoms annually.
The company supplies condoms to renowned brands such as ‘Durex’ and ‘Trojan’, as well as to the UK’s National Health Service (NHS).
Kiatt shared insights on potential condom price increases during interviews with Reuters and Bloomberg. Further communication has been established with Carrex.
Following US and Israeli airstrikes in Iran, the country retaliated by blocking the Strait of Hormuz, severely impacting global oil shipping routes.
Currently, this critical waterway is nearly inoperative, causing significant disruptions in global supply chains.
Severe Condom Shortages Amid Crisis
Approximately 20 percent of the world’s crude oil and liquefied natural gas (LNG), along with various petrochemical products, are exported through this route.
Condom manufacturers rely heavily on petroleum derivatives. Latex used in condom production requires lubrication with ammonia and silicone-based lubricants, all derived from petroleum products.
According to Kiatt, condom demand has increased by around 30 percent this year. Rising shipping costs and delays have deepened the shortage crisis.
“During crises, the need for condom use rises because people cannot be certain about their future or job security,” he told Bloomberg.
“If another child is born now, there will be an additional person to care for,” he added.
Shortages and Rising Prices in Other Sectors
The conflict between the US, Israel, and Iran is affecting global energy markets. As petroleum prices rise, other goods are becoming more expensive as well.
The Iran conflict has caused airfares worldwide to increase. Recent research shows that average prices for low-cost airline tickets have climbed 24 percent compared to the previous year.
Disruptions in shipping goods from the Gulf have increased the cost of chemical fertilizers, and helium used in computer chip production is also in short supply.
Bottled water producers are also facing pressure due to raw material shortages.
In early April, the United Nations warned that rising shipping costs may push prices of sugar, dairy products, and fruits higher.
US President Donald Trump has stated that the ceasefire period between the two countries will be extended until talks conclude, but as of Wednesday, peace negotiations between the US and Iran remain uncertain.
