KUALA LUMPUR, April 10 – The demand for medical and surgical rubber gloves picked up last month despite the prevailing oversupply situation which is expected to be in equilibrium by 2025.
Malaysia Rubber Glove Association’s (MARGMA) former president Denis Low Jau Foo said that the uptick in demand was due to customers replenishing their stock.
“There was aggressive buying during the COVID-19 pandemic; those stocks are facing expiry. Medical gloves have a shelf life,” Low said.
It is this replenishment factor that is pushing up demand, Low said.
With demand on an uptrend, prices are also set to rise.
“We are seeing a significant increase in latex price by as much as 28.7 per cent. This means a higher cost for glove manufacturers and this will be passed on to the buyers,” Low said.
Rubber glove manufacturers are the biggest users of bulk latex, consuming close to 460,000 tonnes per annum, he said.
Weather conditions such as El Nino and La Nina are also instrumental in the price rise and rubber price volatility. Stability is possible from June onwards, Low said.
While the uptick in demand is good news for the sector, many glove makers have “switched off production” because of the oversupply situation a few years ago.
“The glove industry is now running at 50 per cent capacity. It is easy to switch off production. To restart it needs collaborative action by all players.
“The government also has to ensure workers’ return, materials and logistics. All these factors need to work in tandem,” Low said.
Malaysia produced up to 230 billion pieces of gloves at the height of the pandemic and prices soared to crazy levels, Low said.
Between 2020 and early 2022, prices reached US$120 to US$140 per 1,000 pieces versus US$18 and US$20 per 1,000 pieces today.
“The lowest was US$14 for 1,000 pieces earlier this year in China,” he said, adding that the situation in the sector will be more stable in a few months.
