Over the past several weeks, there have been unprecedented price increases for many cotton and natural rubber (latex) products. Commodity prices for both of these materials are at record levels, and the expectation is that this will continue for the foreseeable future. Increased worldwide demand and historically tight supply are the primary drivers of this crisis. Severe flooding this year in Pakistan (cotton) and Thailand (rubber) – plus India’s decision earlier this year to restrict the exporting of cotton – have all contributed to this situation. There is a significant amount of information readily available regarding the soaring costs of cotton and latex and we have included some news links for your reference. (Click on the headline above to read the entire article.)
Bloomberg Report - Cotton Advances to a Record in New York on China Shortages, Global Supply
Dallas News - As Cotton Prices Soar, China - Not Texas - at center of it all
Commodity Online - USDA estimates to push up global cotton prices
Bloomberg Business Week - Rubber Extends Rally to 30-Year High, Shanghai Climbs to Record
This extreme volatility in pricing and raw material availability has tremendously hampered many factories’ ability to obtain raw materials to produce our products and to control costs. In many cases, the raw materials have risen so quickly that factories – both large and small – cannot financially afford to manufacture the products or the raw materials are simply not available.
Due to these unprecedented supply and cost constraints, we are advising our customers that we may be unable to guarantee supply or to commit to pricing in some cases. We strongly urge you to not commit to any long term (or even intermediate term in some cases) pricing or supply to your customers. The most severely affected products in our line are primarily cotton canvas, jerseys, lisles, and, in certain cases, string knits. In regards to latex, most volatility is occurring in the supported and unsupported latex styles (canners and disposables). However, since there are many other products in our line that contain varying degrees of cotton and latex, we encourage you to call your sales representative and discuss which products you currently purchase may be affected.
We will continue to work closely with our factory partners during this difficult period, and will do our best to maintain stock levels and control costs to the best of our ability.
Please feel free to contact your MCR sales team with additional questions. Thank you for your patience and support.
About MCR Safety
MCR Safety has more than thirty-five years of experience as a leader in the field of personal protective equipment (PPE). MCR Safety globally manufactures and distributes safety gear marketed as MCR Safety, Memphis Glove, Crews, and River City. Our assortment of offerings include gloves, glasses, garments, respiratory, hearing, foot protection, and other safety gear. Our products are made from the highest quality materials available to ensure maximum safety, comfort, and style. Contact your Sales Team at 800-955-6887 or visit /www.mcrsafety.com for all of your safety gear.