- The disposable glove manufacturing is turning the corner. The high inventory built up during the pandemic in the supply chain have been largely drawn down. Latest quarterly reports of listed glove manufacturers shown sequential growth in volume and firmer ASP.
- Revenue growth is driven mainly by higher volume and strong US$. On top of restocking, customers could have placed more orders to cope with longer shipping time from the Red Sea conflict, and potential price increase if the US were to raise import tariffs. ASP rose by average 10-15%, to pass through higher raw materials costs.
- Margins have recovered, though these are still below pre-Covid’s level, except for Riverstone. The improvement is in part due to higher output, which gives operating leverage as fixed costs account for 50% of cost of production. The cost of fuel has also
Glove manufacturers have reported a recovery in volumes and margins. We find out if the worst is over for glove stocks.
Summary
