All posts by: Jean NORREEL

All the gloves in the world

We are now well aware of the symptoms associated with Covid-19: fever, pains in the joints, sore throat. Another side effect that is less frequently described relates to Greed fueled by Fear!

In the last couple of months, it looks like all of the traders in the world have switched from selling coffee beans, shrimps, or any other commodities to selling gloves and masks!

The market is saturated with amateur traders who do not make the difference between kitchen gloves and medical gloves. It is undoubtedly annoying and lifts a veil of suspicion on any transaction. But more than that, the real plague is linked to fake buyers that will trick you in multi-trillion dollar deals!

This new breed of buyers will shield themselves behind fake cage codes, mostly black ones. For the record, there is no such thing as a black cage code that will promise you illimited access to Government funds. It just does not exists. Period

What is a CAGE Code?

What is the best way to bring stars in the eyes of any PPE broker? Just tell them you are acting on behalf of a company with a fully-funded Cage Code looking for a couple of trillion boxes of gloves and/or 1860 respirators.

Looks ridiculous? Just take the test, and you will see the result. But do you really know what a cage code is? Is this just the promise of a juicy IMFPA? Is this some kind of secret code that will open the doors of the White-House, DoD, and ultimately link your bank account to the Treasury Department?

No, a Cage Code is just an identifier that will help you do business with the U.S. government. It just means that you do business or plan to do business with a U.S. Governmental entity. No more, no less. You don’t believe me, just check the website CAGE maintained by the Defense Logistic Agency.

Do you have doubts about a company claiming they hold a CAGE code? Just check the SAM database, the federal System for Award Management. All of the companies that hold a Cage Code are listed. If you don’t find your buyer there, this is a major red flag.

All the money in the world

WhatsApp was initially created as a social media platform allowing teenagers and young adults to stay connected and exchange nail varnish and bachelor party pictures. During the last couple of months, it looks like all of the money in the world is now being exchanged on this platform. My cell phone is full of LOIs and Purchase Orders totaling more than 10 trillion dollars, all sent on WhatsApp. Interestingly, most of the companies that issue these POs have only been incorporated a couple of months ago.

These companies mostly use Gmail addresses. One of them was willing to buy more than 2 trillion dollars of medical supplies. Their very prestigious address was located in downtown Chicago….in a shared working space with a staggering 99 dollars monthly rent, free coffee, and donuts included! This “robust” company ordered more than 2 trillion dollars of Gloves, including a 200 billion dollars commission! That would have been nice if it was not dramatically sad!

It looks like most of the PPE brokers have entirely lost the sense of reality. Here is a couple of figures to bring back a bit of context to these figures:

• In 2017, the total world GDP was 80 trillion dollars. I repeat 80 trillion dollars! This represents 7 trillion OTG boxes of Cardinal Health Gloves.
• The United States GDP, the world’s largest economy, was 19 trillion dollars…not even 2 trillion boxes.
• Black Rock, the biggest hedge fund in the world, has $7.4 trillion under management.

Do you still have doubts? All of the money in the world is not used to buy latex or nitrile gloves. Period!

Is the world covered with gloves?

Look around you! Is the world covered with gloves? It should be, at least according to the size of the lots currently being offered on the market. Recently, we saw the first Trillion OTG (On The Ground) Boxes of gloves. When asked if it has to be produced during the next 50 years or was real OTG, the broker responded in disdain, swearing on the head of his children that they have seen the Letter of Attestation, Proof of Life, visited the warehouse (s), and touched the holly boxes himself.

Fair enough, let’s make a quick calculation. If you assume that 5 billion boxes will require 200,000 containers, 1 trillion boxes will be a staggering 40 million containers! As of today, the biggest ship in the world can “only” carry 23,000 containers. I already hear you; this is production over numerous years; some are produced in the U.S and do not need to be shipped by sea.

I hear you loud and clear! You are not convinced. Just have a look at this fantastic visual representation of what represent various quantities of 1860 respirators. Such quantities of gloves will be bigger than the great wall of China.

Still not convinced? Let’s try something else!

As of today, there are 7.8 billion people on earth. We are talking roughly 15 billion of hands. One trillion boxes of gloves would be the equivalent of 6,666 pairs of gloves for every person on earth during the next 18 years if we ever had the idea to wear one pair of gloves every day.

From Tulips to Nitrile gloves: Haven’t we learned anything in 400 years?

Warren Buffet famously said: “What we learn from history is that people never learn from history.” Humanity doesn’t change! Fear and Greed are the two main drivers that shaped the history of the world. It was like that 400 years ago when the most valuable commodity was tulip bulbs. The 1637 tulipomania frenzy is very similar to what we see nowadays with nitrile gloves and 3M 1860 respirators.

Gloves are just becoming a commodity controlled by hedge funds in the hope of flipping their inventory at a profit in the shortest time possible. Just like tulips and the Internet Bubble, Nitrile Gloves and 3M respirators have now reached unsustainable levels. Two months ago, we struggled to find 100 million boxes, one month ago, the first billions OTG appeared, last week we saw trillion lots…I expect quadrillion to arise anytime soon.

Psychologically, it means that the market operators are fully disconnected from reality…which is to be expected when buyers do not believe sellers, sellers do not trust buyers, and, lawyers and SGS reports are not even acting as a way to balance the market. The only positive point is that none of these fictitious transactions will ever close and that just dreams and time will be ultimately wasted chasing unicorns.

Follow the KISS principles to survive the PPE market another day

1. Are you being offered a couple of Trillion boxes of nitrile gloves OTG by a fellow broker? Runaway!
2. Are you being sent a Letter of Attorney smelling fishier than a gallon of Nuoc Man sauce? Runaway!
3. Are you being contacted by a seven or even eight stars General working undercover to fill the world with gloves? Runaway!
4. Are you being asked to use a Government Approved Paymaster that will handle all of your commission? Runaway!
5. Do you have access to a production line from a Glove manufacturer who claims to deliver 1 billion boxes of gloves a week at an incredible price? Runaway!
6. Are you being offered a 30% commission on a deal that needs to be closed in the next thirty minutes? Runaway!
7. Is the Attorney handling the transaction requesting to be part of the IMFPA? Runaway!

Are you the holder of a colorful Cage Code fully funded with a couple of trillion dollars looking to buy via a shell company founded one month ago on behalf of Bill and Melinda Gates Foundation, the White House, or the DoD? Well, we suggest that you call the President directly. You do have his private cell phone number, don’t you?

We, at HASHI, are just reasonable people serving normal companies and hospitals that will ultimately buy gloves that will be used by ordinary people and healthcare professionals!

If you want to survive this industry another day…. follow these three Principles:

1. Vet the buyers,
2. Vet the suppliers,
3. When in doubt, just run away and look for real people.

International Trading is a marathon and not a get rich quick scheme! If you want to survive this market, just take a deep breath, have a nap, and listen to Rudyard Kipling.

Examination Gloves: Frequently Asked Questions

What types of examination gloves are recommended when taking care of COVID-19 patients

The CDC recommends using disposable medical exam gloves when taking care of suspected or confirmed COVID-19 patients. CDC Guidance does not support double gloves.

 

What are the different types of examination gloves?

There are three different types of medical gloves: Latex, Vinyl, and nitrile.

Latex gloves are made of a biodegradable material originating from the latex ducts of rubber trees. They are biodegradable, come in different thickness and offer a very comfortable fit. They ensure perfect dexterity and act as a second skin while efficiently protecting the wearer and patient from pathogens.

The main drawback of latex gloves is that latex is an allergen and can induce skin irritations and rashes. Being made of a natural substance, the price of latex gloves are also closely linked to the cost of rubber.

Vinyl gloves are produced using polyvinyl chloride (PVC). The low flexibility of the crude polymer is a significant issue. A plasticizing (Phthalates DINP) chemical is added during the production process to smoothen the gloves.

Synthetic Vinyl gloves are not as puncture-resistant as their nitrile and latex counterparts. Being relatively cheap to produce, they offer a good alternative in settings with high gloves turnover.

The incidence of allergy is very low (less than 1%). When compared to latex and nitrile gloves, Vinyl gloves present a higher permeability to bacteria and viruses. They are not advised when dealing with highly infectious agents and patients.

Nitrile stands for Nitrile Butadiene Rubber (NBR). They do not integrate any form of natural rubber, which makes them highly anti-allergenic. Nitrile has little resistance to friction, which makes them makes them very easy to put on. Nitrile gloves are powder-free and are three times more resistant to puncture than latex.

They are also very resistant to chemicals and pathogens. When considering that they are also relatively cheap to produce, nitrile exam gloves are the best choice for medical examination gloves. Their only drawback is that they offer a slightly reduced dexterity when compared to latex gloves.

 

Who are the leading producers of examination gloves?

Being historically made of natural, it comes at no surprise than the primary producers of gloves are mainly located in South-East Asia and especially in Malaysia, Vietnam, and Thailand. The Malaysian Rubber Glove Manufacturer Association (MARGA) lists more than 30 members. At Hashi Healthcare, we pride ourselves in working with the best-established players such as Top Glove, V Gloves, Intco, Supérieur, and many others.

 

Why is the price of gloves so volatile?

Prices for exam gloves have been multiplied by a factor of 3 in the last couple of months. It is the direct result of increasing demand but not only. Gloves are becoming a commodity, and the price is driven by the necessity to cut the production lines often to get an allocation. The price increase in logistics also has an indirect effect on pricing.

For some specific lines, Air Freight costs have been multiplied by a factor five. At HASHI healthcare, using our network of suppliers, we have been able to secure a minimum allocation of 500 million boxes every week. We also offer Spot Offers in the range of 5-20 million boxes ready for immediate shipping.

 

What is the global production of exam gloves?

This question is part of the little secrets of the Glove industry. Top Gloves, one of the leading manufacturers, produces close to 150 billion gloves. If we consider that the company claims to have 25% of the market, we can reasonably assume that global production is north of 500 billion. New factories are being built right now and no doubt that in the coming months, the daily global output will be close to 2 billion gloves per day.

 

What are the needed certifications?

In Europe, all medical gloves should comply with EN455 standards. This European Standard covers the minimum properties that address specific essential requirements detailed in the Medical Device Directive 93/42/EEC.

EN455 is a series of tests that define the requirements for exam gloves to protect the patient.

• EN455-1: Freedom from holes
• EN455-2: Physical properties and resistance
• EN455-3: Biological evaluation
• EN455-4: Shelf life with a maximum shelf-life of five years for medical gloves.

EN420 defines the standards concerned with protecting the wearer and comply with PPE regulations

EN374 defines the requirements of gloves to protect against certain chemicals and micro-organisms.

In the US, the FDA regulates latex and nitrile gloves as medical devices. Even though the gloves are a class 1 device, it requires FDA 510K Clearance. ASTM D6319-19 defines the standards for nitrile examination gloves for medical applications. ASTM D3578-19 refers to rubber gloves and ASTM5250-19 to Poly(vinyl chloride) gloves.

What you need to know about nitrile gloves

When caring for suspected or COVID-19 patients, the CDC recommends that medical professionals use nonsterile disposable examination gloves. The question often lies in which glove material to choose. Considering that vinyl gloves are not very resistant to pathogens, the choice often lies between nitrile and latex gloves.

Nitrile vs. latex: which ones to choose

Gloves are usually made of either nitrile, latex, or vinyl. Vinyl and latex gloves are respectively produced out of PVC (polyvinyl chloride) and synthetic rubber.

Nitrile gloves offer several qualities that explain their success as the medical gloves of choice.

Nitrile gloves are well suited for those suffering from latex allergies. They are also more resistant to puncture, chemicals, and viruses than their natural rubber alternatives. They also have a long shelf life of up to 5 years.

On the downside, latex gloves provide a better touch sensitivity, are biodegradable, and generally cheaper than the latex-free gloves.

 

For medical-grade gloves, certification is paramount.

When choosing a nitrile glove, it is critical to understand the certification. The general usage will define if the glove has to be chemical resistant, puncture-resistant, or of industrial grade.

In Europe, the CE mark certifies the quality of the gloves. They fall into two different categories:

• PPE Category III is a minimum requirement for personal protection. The gloves must pass the EC examination by a notified body.
• Medical Device Gloves are self-certified and fall into the EN455 directive. They are self-certified and used mainly for patient protection.

Considering the appropriate level of CE certification is essential, depending on the potential level of chemical or biological risk. The Acceptable Quality Level (AQL) defines the standard for pinhole defects. The lower the AQL, the lower the chance for a pathogen to pass through the glove. An AQL of 1.5 is the minimum criteria to be considered for Category 2 Biological agents.

Several standards are used to assess the level of protection:-:

• EN374-1:2003: Low Chemical Protection
• EN374-2:2003: Micro-organism protection
• EN374-3:2003: Protection from Harsh chemicals
• EN421:2010: Protection from Radioactive particles
• EN1149-5: Electrostatic properties
• EN388:2003: Mechanical Hazards
• EN407:2004: Thermal Hazards
• EN511:2006: Protection against cold

With viruses such as the SRS-CoV-2, a glove with EN374-2 Level 3 designation, AQL of 0.65, should be considered.

In the US, the American Society for Testing and Materials (ASTM) developed standards for patient examination gloves.

ASTM D6319-19 defines the standard specification for nitrile Gloves for medical applications.

Gloves are considered a class 1 device. They somehow require an FDA 510K Clearance. To be noted that powdered gloves are not allowed in the ISA for medical purposes. For medical examinations, powder-free nitrile gloves a.

Other standards, such as ISO 16604:2004 and ASTM F1671-97b, may also be requested.

 

What type of nitrile gloves do we offer?

At HASHI Healthcare, we work with more than eight gloves factories located in Malaysia, Thailand, Vietnam, and China.

All of the certifications are carefully analyzed and follow the recommendations of the CDC. To know more about our procedures, please read our article about the current market for gloves.

Contact us to request for the most updated prices.

What is wrong with the disposable medical gloves market?

In these times of COVID-19 pandemic, to say that the disposable medical gloves market is volatile is no less than a euphemism. More than the prices themselves, the market is also flooded with counterfeit products of unequal quality. Even at the port of loading, production can be stolen or exchanged for second grade or QC rejected gloves.

At HASHI Healthcare, we implement rigorous procedures to ensure that our products are genuine and that our prices are fair and reflect the reality of the market. In this article, we aim to raise awareness about the main market drivers, players and provide you with the keys to understand why the demand for disposable medical gloves is skyrocketing.

Understanding the demand for gloves

Understanding the demand for nitrile gloves is pretty obvious in times of pandemic. To protect yourself against the COVID-19 virus, the CDC recommends to wear masks and to practice social distancing. Gloves are to be used when caring for patients and medical procedures. A new pair of gloves should be used for each patient.

In hospital settings, we can reasonably assume that 100 gloves are used per day and patient. In the United-States, the overall hospitalization rate for COVID patients is close to 10%. As of July 5th, 1,500,000 cases are diagnosed in the United-Sates, which means that at least 150,000 patients are or have been hospitalized.

How many gloves are needed daily? Let’s do the math, and we found a staggering 15 million gloves per day. This is 5 billion gloves needed per year….only for hospitals….only for COVID patients….and only in the United-States!

The surge in demand drives the growth of this market and is responsible for the rise in price. On top of that, nitrile gloves are now considered a commodity, and traders usually dealing with oil or food are now driving the demand. Top Gloves, one of the main players on this market, has seen his share price multiplied by three in less than two months. 

An outlook of the gloves market

According to Global news wire, the disposable glove segment is expected to grow at a CAGR of over 14% during the period 2019-2025. By 2025, this should represent US$ 16.50 billion. The real bottleneck is that disposable gloves and especially nitrile ones are a very specialized product.

The major market players are mostly based in Malaysia, Vietnam, and Thailand. The reason for that is obvious. Gloves, at least the latex ones, are mostly made of natural rubber, and South Asian countries are the main producers of rubber.

How we proceed to ensure top quality, fair prices and smooth supply

At HASHI Healthcare, we know that the key to smooth supply is diversification. That why we do not only work with the leading players such as Top Glove Corporation Bhd in Malaysia and V Gloves in Vietnam. We also work with smaller companies. By aggregating our suppliers, we are in the unique position of being able to provide up to 100 million boxes per week.

To ensure a smooth supply, we take care of the logistics and provide all of our gloves on a CIF basis only. In Europe, we also offer DDP.

We aim at establishing long term partnerships. Our prices change depending on the market, but we pride ourselves on offering fair prices. We accept 100% LC at sight or Escrow following SGS inspection.

We follow a strict buying process to reassure all parties involved

One of the main issues of any High Demand and Limited Supply market is linked to price fishing.

We follow a strict protocol will it be on the buyer or seller side. This way, all of the parties involved work in full confidence.

1. BUYER provides a Letter of Intent (LOI)
2. HASHI HEALTHCARE provides a Soft Corporate Offer (SCO)
3. BUYER provides a Proof of Funds (POF)
4. HASHI HEALTHCARE provides a SALES PURCHASE AGREEMENT and IRREVOCABLE CORPORATE PURCHASE ORDER
5. Once agreed, our attorney will provide all of the certificates and Proof of Life on video.
6. Buyer/Seller/Escrow agent sign triparty agreements and set up the escrow or LC
7. SGS inspection as per agreed on SPA
8. AWB or BOL provided to Buyer
9. BUYER verify the SGS inspection report, Bill of Lading (BoL) or Airway Bill (AWB)
10. RELEASE of the ESCROW or LC

Contact us to request for the most updated prices.