Further to our recent communication regarding developments in the Middle East and global supply chain conditions, we would like to provide a further update on current market trends and the outlook for the coming months.

While Foodcare has maintained continuity of supply, cost pressures across raw materials, energy and freight continue to accelerate globally.

Below is a snapshot of key market indicators we are closely monitoring across our supply base.

Following our previous market updates, we wanted to provide a further update on current raw material and supply conditions.

While some commodity prices have eased from the significant peaks experienced earlier this year, the overall cost environment remains elevated and volatility continues across several key raw materials.

Nitrile Butadiene Rubber (NBR)

• Significant upward pressure across nitrile glove supply, driven by rising feedstock costs and tightening availability
• Proposed increases in some segments are in the range of 30–40%
• Forward pricing remains uncertain across parts of the market, reflecting ongoing volatility in input costs
• Supply availability tightening across key regions, with some factories pausing production

Polyethylene (PE)

• Oil and naphtha have increased sharply through March, driving higher polymer costs globally
• Market increases of ~15–25% observed in key regions
• Many factories are:
  
  
  • Offering pricing for April production only
  • Accepting May orders without confirmed pricing

Polypropylene (PP)

• Finished product increases of 10–15% are now flowing through on March production
• Further increases expected, with impact flowing into landed cost from May onwards

*Click to enlarge graphs 

Nitrile Gloves
Raw Material Costs Remain Elevated

The sharp increases in nitrile glove raw materials experienced during March and April have moderated, however prices have not returned to the levels seen prior to the disruption.

Current supplier data indicates:

• NBR / Nitrile Latex: still sitting around 33% higher

• Butadiene: approximately 48% higher

• Acrylonitrile: around 55% increase

These materials are key inputs in nitrile glove manufacturing and continue to place pressure on production costs.

Polyethylene & Polypropylene
Still Well Above February Levels

Resin pricing has eased from the extreme peaks recorded in March and April, but remains materially above the levels seen prior to the disruption.

Current Trading Economics benchmark data indicates:

• Polyethylene (PE): 20% higher than February 2026 levels
• Polypropylene (PP): 29% higher than February 2026 levels

Both markets have also shown renewed upward movement following the lows recorded around late June and early July.

Importantly, Foodcare has not passed through the full extent of these raw material increases. Our previous pricing adjustments were limited, despite underlying resin movements being materially higher.

We continue to absorb a portion of these increased costs and, based on current conditions, do not intend to pass through the full market increase.

Foodcare continues to actively manage forward purchasing and inventory levels to minimise disruption and maintain reliable supply for our customers.

Our approach remains to absorb and mitigate cost increases wherever practical, rather than automatically passing the full impact through to customers.

We will continue to monitor raw material, freight and energy markets closely and will reflect sustained reductions in input costs through our ongoing pricing reviews. Equally, if market conditions deteriorate materially, we will communicate any impact as early as possible.

If you have significant upcoming requirements or forecast changes, please speak with your Foodcare representative so we can ensure appropriate stock is reserved for you.

Because running out isn't an option.

Need help? Contact our friendly team on 1800 211 290 or team@foodcare.com.au.