A large-scale flood in Malaysia, the biggest in years, have sent price of rubber surging, affecting some businesses, and not some.
The world’s largest rubber glove manufacturer, Malaysia-based Top Glove, for example, says that its business has remained unaffected by the recent floods in Malaysia that saw the price of rubber increasing.
«We expect demand to continue growing at 6% every year on the back of increasing hygiene standards and healthcare awareness, particularly in developing markets where usage is low but rapidly rising», Top Gloves chairman Tan Sri Lim Wee Chai said in an interview with RJA.
Rubber prices surged as flooding disrupted supplies from Malaysia. In fact, it has been reported that rubber output in Thailand (another country that was affected by the floods) and Malaysia will drop at least 30% and prices have been predicted to rise further.
However, Top Glove’s top executive remained optimistic. «As an essential item in the healthcare industry, the demand for rubber gloves is generally resilient to raw material price fluctuations and economic uncertainty», he added, noting that the price increase «was still considered small compare to the past few years», said Lim.
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