- The industry’s demand and supply dynamics are showing signs of recovery, as April and May order volumes seem to have picked up meaningfully. Further normalisation in gas tariff, coupled with stabilisation of ASPs, can eventually propel glove makers’ profitability in 2024.
- Moving forward, we expect a meaningful demand recovery trend by 2H24 before glove makers recommence capacity expansion in 2025/2026.
Industry dynamics turning favourable.
- - Read this at SGinvestors.io -
- Chinese glove makers are expected to raise prices to US$16- 17 from US$15-16 for the coming months based on our channel checks.
Demand expected to pick up by 2Q24.
- Malaysia’s glove export volume was largely flattish y-o-y and lower 6% q-o-q in 1Q24. Positively, export value grew 5% y-o-y and 10% q-o-q – indicating the momentum of cost pass-through mechanism is picking up.
- - Read this at SGinvestors.io -
- All in, our 2024 global glove demand forecast is now 375bn pieces, representing 22% y-o-y growth after we incorporated 2023 data guided by MARGMA (Malaysian Rubber Glove Manufacturers Association).
March quarter earnings preview.
- Read more at SGinvestors.io.
Oong Chun Sung RHB Securities Research | Singapore Research RHB Invest | https://www.rhbgroup.com/ 2024-04-30
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