Industry operating dynamics remain in favour of the local glove manufacturers. This is on the back of better demand visibility, supply rationalisation, and average selling price (ASP) stabilisation. Industry-blended ASPs are currently hovering at USD20-21 per 1,000 pieces (pcs), improved slightly from USD20 per 1000 pcs in quarter two 2024 (2Q2024). China glove makers’ ASPs now range between USD18- 19 per 1,000 pcs, higher from USD17-18 from the previous quarter.
Malaysia’s
gloves export volume surged 66% month-on-month (MoM) and 105% year-on-year
(YoY) in August, outpacing the growth in July (+12% MoM; +43% YoY). Export
value surged 15% MoM and 51% YoY to MYR1,583mil.
Meanwhile, China’s gloves exports grew 5% in August following a 3% MoM contraction in July.
That said,
Malaysian Rubber Glove Manufacturers Association expects global gloves demand
to chart a compounded annual growth rate of 10% to 450bil pieces from
2023-2027. RHB gathered that local manufacturers are running within the range
of 70-80%. That said, RHB expects a marginal change in global industry supply
of 6bil in 2024.
Key
risks are labour shortage, weakening of the USD against MYR,
higher-than-expected raw material prices, and slower-than-expected demand
recovery.
Reference;
Malaysia glove export
surges on the back of healthy demand, CS Ming, Focus Malaysia,
7 October 2024
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