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Glove shares will not go up until March 2023. Currently all the glove company operating at 60% capacity to reduce the global inventory level.Give them six months from June, there will be shortage of glove globally. Big four glove and other medium glove manufacturer have the cost advantage and financial muscle to sustain. The new glove player will be wiped off by end of the year including those from China.
TG also a oem manufacturer for one branded overseas brand which export to America. However currently this branded overseas glove manufacturer also ban by US as other manufacturer used by this branded Glove company also has labour issues.
the glove current situation just like palm oil in the past. when the prices are good,all the Rubber planters switch from planting of Rubber to palm oil tree and indonesia also start to plant palm oil trees and cause the gut.
After the drop in palm oil prices, the production reduce and as demand increase gradually,the prices increase to current stage.
Glove demand definitely on the rise and as more new entrant in China and Malaysia are wipe off, the supply will reduce and prices will rise again.
As long as the the big 4 and medium size glove company break even and having a small loss for next 6 months, the new glove players in malaysia and overseas will be wiped off. This is a marathon game and need to be well equipped with capital and sizeable production capacity to compete.