Top Glove expects ‘sharp decline’ in raw material costs

Shah Alam, Malaysia – Malaysian gloves manufacturer Top Glove expects a sharp decline in raw materials prices in the months to come.

In an investor presentation on 31 Jan, the company said it expected the ‘declining trend’ of prices to continue for key raw materials, including nitrile, natural rubber latex and butadiene. 

Top Glove noted a 47% decline in nitrile prices from September 2021 to an estimated $1.08/kg for January 2022.

NR latex prices also dropped 29% from $1.66/kg in May, to $1.18/kg in September. The trend, however, was reversed due to the LaNina weather phenomenon, bringing the price to $1.28/kg for January 2022.

Butadiene prices, Top Glove said, “declined steeply” due to additional supply capacity and lower demand from downstream production.

Acrylonitrile prices fell 25% from $2.68/kg in May to $2.00/kg in January, Top Glove added.

The three months to end of December 2021, however, saw a 21% jump in natural gas tariff.