The sector that have been creeping up slowly post the announcement by USTR on the phased tariff structure for medical face masks and surgical gloves, starting at 50% in 2025 and escalating to 100% by 2026.

Looks like a mini theme play into 2025.

With bird flu statewide emergency in California and Trump’s tariff, Supermax is at the right place at the right time! Price is the lowest amongst the top four and they are giving bonus issues 1:5 and warrants 1:20. Should have bought more when it was @0.800 regions.

It seems most of those trapped profited during the uptrend and bought more during the downtrend, and die hard fensi suffered the most.

most retailers are trapped practicing atc (average total cost) or DCA without realizing those promote atc/dca are mostly inexperience and half retarded.

herd movement could push price to ath, those don't know to exit will end in either slaughter house or over the cliff. according to some statistics, about 2/3 loss money, 1/10 profit and the rest breakeven.

bursa is a known croc pond, those drink from it for extended period of time is likely to be mauled.

when novice is more expert than the professional is about time to exit.

This post has been edited by icemanfx: Mar 26 2025, 04:05 PM

Oversupply & low cutting pricing from China manufacturers.... How to make $$$....

https://x.com/i/status/1906476023975170065

PRC don't produce rubber and yet could produce rubber glove cheaper like car tyre.

They learned from others & get the know how...

The production cost also lower...

Because uses cheap coal vs ours Gas which higher cost...

Mys is a gas producer and could import thermal coal from Indonesia.

Agreed. We're Gas producer...

But we also charge higher fee for industrial Gas supply... Keep increasing only....

Deleted

This post has been edited by nexona88: Mar 31 2025, 10:54 PM

During good time, gomen imposed windfall tax but do little to improve competitiveness. Like many industries e.g shoes, furniture, etc in this country, either need to relocate, downsizing or close.

It's risk need to be taken into consideration

every industry gotten effected by the power of PRC

Nobody cares if you are selling rubber or synthetic gloves, what matters is price... back then Hartalega was very profitable but the big rush into synthetic gloves by other manufacturers is also putting pressure on synthetic glove.

Government already let them off with that small payment. If they really pay windfall taxes, I think some of them are winding up soon in the next 5 years. Instead they saved hundreds of millions which now sit in their banks while they burned them during this period of hardship.

Besides, its them who got greedy at first. It does not take a genius to notice that majority of them are running between 50-60% utilisation pre covid. Couple with greed, they expanded 100% for most of them hence we have now 200% capacity (except for Top Glove) for Kossan, Hartalega, Supermax and the rest of the smaller players. Top Glove took over Adventa and later Mah Sing Glove which increase their capacity somewhat but less than 30% increase presumably. Hartalega even shut down their old factory which is around 25% of their capacity.

I do not know why you are pointing fingers at government for the troublesome situation in glove industry right now. Are they selling their gloves at cost in Malaysia when it was peaking at USD150/1000 gloves? I bet not... so why should we subsidize them? Not to mention them hiring thousands or even tens of thousands of foreigners instead of Malaysians.

Buy Supermax. Winner in trade tariff war. At least they spend it by opening a plant in US

A reason why prc manufacturers are competitive because their local gomen support them.

without foreign workers, many local manufacturers either couldn't compete in export or need to close down. in u.s, eu, japan, korea, uae, saudi, etc all need and have foreign workers.

Supermax closed 0.760 on last fri 4/4
Today Fri 5/4 will close at ????
Msian gloves major beneficiary 🔥🔥

KUALA LUMPUR (Aug 1): Malaysian glove stocks were mostly lower on Friday, as analysts say the latest US tariff update reduces the advantage enjoyed by local manufacturers against their foreign peers.

US customers are likely to push back against any price increase by glove manufacturers from the tariffs amid global oversupply, said TA Securities. Further, Malaysian glove factories, the world’s largest, are still operating well below full capacity, the house noted.

“All in all, we believe the trade uncertainty is not over yet as tariff negotiations between China and [the] US are [still] ongoing,” said TA Securities. “We would not discount the possibility of further target-price cut for stocks under coverage, if China is able to get a good tariff deal.”

The US is the world’s largest consumer of gloves, accounting for nearly one-third of the global demand. Malaysia is now the biggest glove supplier to the US, commanding more than half of the market share of medical gloves in the US.

Just before the deadline on Aug 1, the US unveiled a sweeping set of tariffs on its major trading partners, with imports of Malaysian goods suffering a 19% levy. Southeast Asian neighbours face varying rates, with Thailand and the Philippines also at 19%, while Vietnam is subject to a 20% duty.

The tariff comes as Chinese competitors — the biggest rivals of Malaysian glove manufacturers — ramp up their productions in Vietnam, Indonesia, and Cambodia. Utilisation rates at Top Glove Corporation Bhd (KL:TOPGLOV) and Hartalega Holdings Bhd (KL:HARTA), meanwhile, were just around two-thirds of their maximum capacity.

The intensifying competition, combined with an oversupply that would last at least three years, is expected to keep a lid on margins, TA Securities said in keeping its “underweight” call on the Malaysian glove sector.

Further, Malaysian glove players are likely to continue losing market share in the non-US markets to the Chinese manufacturers, the house added.

At noon trading break on Friday, Top Glove was down 0.7% to 68 sen, and Hartalega was also down 0.7% at RM1.45.

https://theedgemalaysia.com/node/764930

It seems local glove manufacturers have been losing market share to prc and indonesia, most if not all are operating in loss.

Vietnam is 20%...

Yes is higher than Malaysia but currency is lower against both USD & MYR

So that 1% is very minimal impact....

Also producing / manufacturing cost also lower....

It seems t@p gl@v@ sold 6 of their factories. H@rta to close their plant in sepang.