Kuala lumpur: Glove manufacturers with a significant focus on natural latex (NL) gloves may temporarily benefit amid the ongoing conflict in West Asia, as customers look for more affordable alternatives to nitrile butadiene rubber (NBR) gloves.
According to BERNAMA News Agency, CIMB Securities has identified Top Glove Corp as a notable beneficiary of this shift, with NL gloves comprising over 36% of its total sales volume in the first half of its financial year 2026. The research note from CIMB Securities highlights plans by global glovemakers to increase average selling prices (ASPs) for NBR gloves by US$7-US$9 per 1,000 pieces and by US$3 per 1,000 pieces for NL gloves starting in April 2026.
Following these ASP revisions, Malaysia's blended ASP is projected to range between US$27 and US$29 per 1,000 pieces, which is higher than China's range of US$23 to US$24 per 1,000 pieces, albeit with a narrower price range.
The note further explains that the prices of key inputs for glove makers, especially acrylonitrile and butadiene, have surged by 59-100% since the conflict began in late February 2026. The closure of the Strait of Hormuz has disrupted the supply of chemical derivatives from crude oil, leading to the Malaysian Rubber Glove Manufacturers Association's call for government intervention to address the resulting NBR latex shortage.
Despite these challenges, NL prices have increased by only 10% and remain relatively unaffected by the conflict. CIMB Securities' channel checks indicate that inventory levels among glove manufacturers in Malaysia, Thailand, and China are critically low, hovering around one to two months' worth of supplies, including finished goods and goods in transit.
The ongoing United States-Iran conflict could exacerbate the supply crunch if it continues. Glovemakers with integrated supply chains are likely to be better equipped to handle these challenges.
Additionally, Top Glove's manufacturing operations in Thailand could provide a strategic advantage, as the company's Thai plants can source locally harvested natural latex, which supports supply chain stability.
Despite these dynamics, CIMB Securities has maintained a 'neutral' rating for Top Glove, with a target price of 63 sen.