511 - Market Update Q2 2021

Glove Market Update

Higher production and stabilizing demand are helping normalize glove market volatility

Demand Update

Supply Update

▪ Production volume and product availability of Latex, Vinyl and Hybrid formats continues to strengthen.

▪ Demand and cost for Exam Nitrile remains high, driving demand for industrial grade glove alternates. ▪ Vinyl and Hybrid blend formats are reliably available and proving to be acceptably substitutes during the pandemic. ▪ Media stories and government action regarding manufacturer labor practices have spurred increased scrutiny of product sourcing by commercial glove customers. ▪ Vaccine distribution is in high-gear, expect the next 60 to 90 days of intense inoculation to contribute to high glove demand.

▪ Nitrile glove availability still constricted but expected to ease in the latter half of 2021. Estimated capacity growth is 20% YoY for the next 3 years. ▪ Although supply is improving, disposable glove supply and demand imbalance will continue through 2022, varying across product types.

Glove Market Timeline

2020 – Q2 2021

Q1 – Q2 2022

Q3-4 2021

• Pandemic demand spikes

• Nitrile popularity to be tested versus lower cost options worn during pandemic shortages • Demand levels off if / as pandemic pressures recede, alleviating supply chain imbalances • Ocean container shipping capacity and costs stabilize

• Increased production & leveling demand will tend to stabilize pricing, though raw material costs rose through Q1 and may again become a factor in price of finished goods. • Vinyl, Hybrid and Vinyl-Nitrile blends (Vitrile) utilization builds as costs decreased. • Nitrile production expected to ramp-up by Q4.

• Raw material shortages

• Aggressive price increases and long lead times (12 Mo.) • Factories selling out capacity to highest bidder • Ocean freight constrained, spot- market pricing

Glove Prices




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