Condom maker warns prices may rise due to Iran war supply disruptions

A Malaysia-based maker of condoms said it may raise its prices due to global supply chain disruptions caused by the Iran war, according to media interviews with the company's chief executive.

Karex CEO Goh Miah Kiat told Reuters on Tuesday that the manufacturer faces a shortage of synthetic rubber, while the company's input costs for some materials in its products have doubled. Rising freight costs and shipping delays have also left the company's customers with leaner than usual stockpiles, Goh told the news outlet.

Karex has been able to fulfill its supply needs so far, but if disruptions from the war continue Karex could raise its prices by 20% to 30%, Goh told Reuters.

"The situation is definitely very fragile. Prices are expensive," he said. "We have no choice but to, you know, to transfer the cost to customers."

Karex did not immediately respond to a request for comment.

The Iran war has led to a virtual stoppage in ships traversing the strategically vital Strait of Hormuz, constraining the flow of global energy supplies. That has affected a range of petroleum-derived products, including plastics and rubber. Petrochemicals, which come from oil and natural gas, are used in more than 6,000 consumer products, according to the U.S. Department of Energy, including lipstick, tennis rackets and pajamas, to name a few.

Founded in 1988 in Johor, Malaysia, Karex bills itself as the "world's largest condom maker." According to the company, Karex produces 5 billion condoms annually, which it exports to over 130 countries. The company is a supplier to U.S.-based condom company Trojan, as well as the British company Durex, according to Reuters. 

The news outlet said that Karex's shipments to destinations such as Europe ⁠and the U.S. normally take a month to arrive, but are now taking close to two months due to shipping disruptions. Amid the shortages, demand for condoms has risen about 30% this year, Goh told Reuters.