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Gloves are Getting Unsold.

Global rubber gloves are estimated to have oversupply this year due to a drop in demand after many countries.

The expected reduction in demand was partly due to the spending of savings stocks throughout the distribution network as many countries were at the end of the pandemic.

The demand-supply situation will only start to head towards balance in 2025 when there is almost no new capacity while global demand for gloves continues to grow supported by increased hygiene awareness.

The average selling price (ASP) of gloves to remain weak in the second half of 2022 due to massive capacity expansion by existing industry participants and new entrants during the pandemic.

Oversupply meant the glove industry participants had less pricing power to cope with costs and the situation was exacerbated by the industry’s low consumption rate, thus putting pressure on the margins.

The recent announcement of financial results suggested that the glove manufacturer’s earnings had not yet reached a low level.

ASP is expected to continue to decline due to low factory consumption levels, which is expected to continue in the medium term amid intense competition.

The situation is exacerbated by weakening demand as evidenced by the low consumption rate of glove participants leading to oversupply, which puts pressure on ASPs coupled with the reluctance of customers to commit to large orders as they expect sales prices to continue to decrease.