Malaysian Glove Makers Set To Raise Prices By US$2.00-US$2.50 Per Carton In October - RHB IB

KUALA LUMPUR, Sept 21 (Bernama) -- Malaysian rubber glove producers are set to raise prices by US$2.00-US$2.50 per carton in October, with another increase possible in November if nitrile latex costs continue to rise, according to RHB Investment Bank Bhd (RHB IB).

In a sector update today, the investment bank said most of the October increase is needed just to cover higher gas costs, and the industry still has too much capacity.

“Generic nitrile gloves’ average selling prices (ASPs) have already retreated to US$19-US$20 per 1,000 pieces in September from the US$27-US$28 peak in May,” it noted.

While acknowledging near-term earnings upside, the bank maintained its “underweight” stance on the rubber products sector.

“If October's increase is realised in full, the fourth quarter of 2026 earnings should improve, and the US dollar and ringgit trading at RM4.076 against our RM4.00 assumption adds a further tailwind. However, a few quarters of higher profit per carton add little to intrinsic value,” it added.

According to RHB IB, Malaysian producers could only raise prices because China’s players are raising theirs.

“Our checks show Chinese generic nitrile glove prices are around US$18.50 per carton, 50 cents below Malaysia’s US$19 per carton for non-US markets.

“In early August, the (price) gap was US$1.50-US$2.00. China prices have moved up, and this is what gives Malaysian producers room to follow. It worked the same way on the way down when aggressive pricing by Chinese producers pulled prices lower as latex costs eased,” it said.

The bank said its core concern is that Malaysian producers do not control their own pricing.

“China producers use cheaper coal instead of gas and have more secure nitrile latex supply – hence, they can cut prices more easily whenever they choose vis-à-vis Malaysian producers,” said RHB IB.

-- BERNAMA