Rubber glove sector thrives on lower costs

topglove1_WEBThe rubber glove sector is presently riding high on favourable factors, most prominently lower costs brought about by falling latex prices in addition to favourable foreign exchange trends as the US dollar strengthens against the ringgit.

These two factors should boost the earnings of glove companies if their trends persist.

Since latex price peaked during the winter season (around February to April 2012), it had fallen 13 per cent from its highs.

The research house was brought to understand that there was an ample supply of natural rubber coming from the additional plantations in neighboring countries such as Cambodia and South Vietnam.

In addition, latex traders were also expected to continue to release their stocks to unlock their cash flows, which would lead to persistent pressure on latex prices.

This was on the grounds that the glove maker had the most exposure to natural latex glove production (at 59 per cent of its cost) and a projected 15 per cent change in its earnings for every one per cent change in the foreign exchange rate.


About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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