Malaysia Glove Export Surges!

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