MARGMA expects demand for gloves in 2022 and 2023 to be 10%-15% higher than pre-pandemic level
14 Feb 2022
The demand for gloves in 2022 and 2023 will be 10% to 15% higher than the pre-Covid 19 level, according to Malaysian Rubber Glove Manufacturers Association (MARGMA) president Dr Supramaniam Shanmugam.
Supramaniam explained that the higher demand for gloves is due to the global spread of the Covid-19 Omicron variant.
MARGMA is monitoring the Covid-19 scenario, said Supramaniam. “Certainly there will be a slight increase in demand for gloves, especially from Europe and America,” he told the media on Monday (Feb 14) after the International Rubber Industry Convention and Expo Malaysia (IRICE 2022).
According to him, the demand for gloves during the Covid-19 pandemic period is incomparable.
“In 2020 and 2021, the number [of demand for gloves] was extraordinary. [I think the 2022 and 2023 numbers will be] 10% to 15% higher than the pre-Covid-19 numbers. It will be higher, but we cannot compare it to the Covid-19 period.
“As for the average selling prices (ASPs) of gloves, I think they will stabilise,” Supramaniam added.
JF Apex Securities Research said in its report dated Feb 9, that the ASPs will continue to taper at least until the second half of 2022 as the rubber glove industry undergoes a paradigm shift due to oversupply conditions stemming from Chinese glove makers.
“Chinese manufacturers have received rising orders from overseas markets, benefiting from cheaper glove prices offerings. Furthermore, the rising raw material prices also exacerbate the current circumstances,” said the research house.
Source: The Edge Markets