FILE - This picture taken on April 6, 2020 shows the logo of Malaysian condom maker Karex at the company's headquarters in Port Klang on the outskirts of Kuala Lumpur. (Photo by MOHD RASFAN/AFP via Getty Images)
The world’s top condom producer announced it plans to raise its prices by up to 30% or more if supply disruptions caused by the Iran war continue.
Karex’s CEO Goh Miah Kiat, told Reuters that it saw a surge in condom demand amid rising freight costs and shipping delays.
What they're saying:
"The situation is definitely very fragile, prices are expensive... We have no choice but to transfer the costs right now to the customers," Goh told Reuters.
Big picture view:
Karex joins a growing list of companies that are bracing for supply chain disruptions amid the ongoing war in Iran.
What’s more, commodities such as instant ramen, Korean beauty, school uniforms, rubber gloves, and even garbage bags could see significant disruptions.
Many of these products rely on petrochemicals—a component found in nearly all manufactured items, according to The Washington Post. These chemicals are derived from oil, which has seen prices skyrocket since the war in Iran began.
Why you should care:
Many plastics companies are worried about the long-term impacts if the war doesn’t resolve soon, a source told The Post.
"If there are no raw materials," the source said, "we cannot produce anything."
The Source: Information for this article was taken from Reuters and reporting by The Washington Post. This story was reported from San Jose.