Top Glove, the largest rubber gloves manufacturer in the world has stated that the prices of latex will likely remain at RM 6-7 per kg as the demand for tyres continue to drop caused by the slow import of China and Europe.
The company said that the latex has fallen into its lowest price in three years by as much as 15% to RM 7.56 per kg this year.
“We are confident that the global demand for medical gloves will remain strong and resilient as rubber gloves are deemed as basic necessities in the healthcare industry,” said Top Glove group chairman Tan Sri Lim Wee Chai.
“Top Glove has placed equal investment weight on emerging markets to capture the demand growth in China, India and Latin America as the improvement in healthcare awareness and standards in these countries will eventually increase demand for medical gloves,” he added.
The company posted revenue growth of 12% during the fourth quarter this year that ended August 31, 2012 which is mainly due to the boost of demand for natural rubber and nitrile gloves.
“The higher sales volume, competitive pricing, increased efficiency coupled with the favourable latex prices and foreign exchange trends further enhanced the group’s earnings and profit margins,” said Top Glove.
(RJA)