PETALING JAYA: Despite weak demand, Top Glove Corp Bhd is expected to increase the average selling prices (ASPs) of its gloves soon. “While Top Glove is expecting to raise ASPs gradually going forward, we are not particularly enthusiastic about it, as this is done in anticipation of rising raw material costs. HLIB Research pointed out that latex prices were expected to rise due to wintering season, whereas higher butadiene prices would drive nitrile rubber prices higher. “Other Malaysian, Chinese and Thai glove manufacturers will likely follow suit, since rising raw material prices will impact all producers. The brokerage said it would take time for the market to absorb the excess glove supply before Top Glove could regain profitability.
Source: The Star March 14, 2023 08:30 UTC