KUALA LUMPUR (April 21): Rubber glove prices, which have increased since early this month, are expected to rise further on costlier raw materials and as Malaysian manufacturers contend with a stronger ringgit.
Malaysian Rubber Glove Manufacturers Association (Margma) said in a statement today that the industry had also taken into account the impact of anticipated minimum wage and natural gas price hike.
“Prices of rubber gloves are expected to rise further on the back of a continuous rise in the costs of production inputs, including natural rubber latex and nitrile latex, which are the two main ingredients in glove making.
“Adding to the cost of raw material rises, the weakening of the US$ against our ringgit also means that glove manufacturers will be getting less ringgit for their exports,” Margma said.
According to the association, natural rubber latex price has increased to an average of RM4.55 a kg now, from RM3.55 a kg in February this year.
Meanwhile, the price of synthetic rubber or nitrile latex has risen to the current average of US$1,020 a tonne (about RM3,957), from US$960 a tonne in February.
Margma also noted that the ringgit had strengthened to about 3.88 against the US dollar now, from a high of 4.58.
“Thus, it is absolutely necessary for glove manufacturers to increase their prices in order to pay for the increased production costs.
“The exchange rate has a direct bearing on profitability and this situation is very closely monitored by all manufacturers and if need be, prices will be adjusted every two weeks instead of the usual monthly pricing regime of the industry during this fluctuating business environment,” Margma said.
