SINGAPORE/KUALA LUMPUR: A sharp rise in raw material costs, triggered by the war in Iran, is pushing up global rubber glove prices and heightening the risk of supply disruptions for hospitals, with manufacturers warning that shortages could emerge within weeks.

Glove makers have increased prices significantly as supply chains for key petrochemical inputs tighten. Synthetic rubber glove prices have climbed about 40 percent to as high as US$29 per box of 1,000 units, according to Oong Chun Sung, an equity research analyst at CIMB Securities.

Analysts at Malaysia's RHB and CIMB Securities said continued disruption could lead to glove shortages by late May, adding pressure on healthcare systems that rely heavily on steady supplies.

"In any procedure that we do in a hospital, we have to wear gloves," said Dr. Kuljit Singh, president of the Association of Private Hospitals of Malaysia. "If there is a shortage, this means there will be some difficulty in delivering some services in the healthcare sector," he said. "We are a little cautious and are watching the situation," but at present, "our suppliers are supplying the gloves as usual."

At the center of the disruption is naphtha, a crude oil byproduct used to produce petrochemicals such as nitrile latex, a key component in glove manufacturing. Naphtha prices have surged to record levels following the closure of the Strait of Hormuz, a critical shipping route for global oil and gas.

Although the United States and Iran have indicated a willingness to negotiate, analysts say supply chain disruptions and inflationary pressures could persist for months even if a peace deal is reached.

Hospitals and manufacturers have some buffer, having built up inventories following lessons from the COVID-19 pandemic. However, industry players warn that prolonged disruption will inevitably push prices higher.

Malaysian glove makers, which account for nearly half of global production, have already indicated that further price increases are likely.

Top Glove, the world's largest glove manufacturer, said it plans to pass on raw material cost increases of about 50 percent, driven largely by rising prices of nitrile latex used in more than half of its products.

Hartalega Holdings CEO Kuan Mun Leong said higher input costs have forced price adjustments. "Glove prices have been adjusted accordingly", he said, adding that over the longer term, "we are concerned that if this war continues, there could be an impact on global glove supply".

Medical supplier Medtecs, listed in Singapore and Taiwan, said it has raised prices by 10 percent to 40 percent, depending on the product, including face masks and surgical gowns.

Investor sentiment has reflected the supply concerns, with shares of Top Glove and Hartalega rising about 40 percent and 50 percent, respectively, between late March and early April, driven by expectations of increased demand and stockpiling.

However, analysts caution that the gains may not last. "The current environment is a cost-push inflation cycle, not a demand-driven upcycle," RHB analysts said.

"As such, average selling price increases are largely defensive as they are aimed at preserving margins rather than expanding them. Once the market recognizes this, we expect the rally to fade."