KUALA LUMPUR (March 18): Top Glove Corp Bhd (KL:TOPGLOV) said it will raise the selling prices of nitrile gloves in the next two months, with raw material costs having doubled to about US$1,500 per tonne from US$750 per tonne amid supply shortages due to the conflict in the Middle East.
Top Glove executive chairman Tan Sri Dr Lim Wee Chai estimated supply shortages to be around 30% less than what is needed.
To mitigate this, Top Glove has begun adjusting its average selling prices (ASPs) for gloves, with nitrile glove prices raised by about US$7 to US$9 per 1,000 pieces in April and similarly in May.
“In the past few days, we have ordered the nitrile latex price at US$1,500 per metric ton. So our glove prices have adjusted accordingly. In the first 23 days in March, we did not increase the nitrile price. But the fourth week of March, we [will] increase our price, a small adjustment.
“But in April, we have to increase a lot, about US$7 dollars to US$9 dollars [per 1,000 pieces]. For May, we projected the price increase to be US$7 dollar to US$9 dollar,” Lim said during a virtual media and analysts’ briefing on Top Glove’s results for the second quarter ended Feb 28, 2025 (2QFY2026).
Wee Chai said the price hikes are “just enough” to offset the increase in costs, noting that nitrile latex typically accounts for about 50% of production costs.
Top Glove managing director Lim Cheong Guan said the group is constantly monitoring geopolitical developments and working with suppliers to facilitate stable nitrile butadiene rubber (NBR) supply and mitigate potential impact. NBR production is heavily dependent on crude oil and natural gas derivatives.
Brent crude oil prices surged nearly US$120 per barrel in March, stemming from the oil supply disruption after the closure of the Strait of Hormuz. At 6pm on Wednesday, Brent crude oil price surged over 70% year-to-date to U$S103.16 per barrel.
Wee Chai said prior to the price increases, the group’s average production cost was around US$14 to US$15, compared with its current selling price of about US$16.
Top Glove keeps 10–14 days of nitrile latex on hand and is working to maintain production. Due to tight supply, the company now orders materials more frequently instead of monthly.
The group currently produces 4.6 billion nitrile gloves per month.
Customer acceptance has been supportive, with 70% to 80% of buyers already expecting the price increase, particularly as Chinese glove producers have implemented similar price adjustments.
On sourcing, Top Glove said its nitrile butadiene rubber (NBR) latex supply is diversified, with about 40% to 50% sourced from Malaysia and the remainder from countries such as South Korea, Taiwan, China and Thailand.
Meanwhile, the increase in nitrile glove prices may prompt some customers to switch to natural rubber gloves, supporting demand for the segment.
“As nitrile glove prices rise, particularly towards US$25, price-sensitive customers may switch to natural rubber gloves,” said its marketing director Lim Jin Feng.