Meanwhile, Top Glove Corp Bhd (KL:TOPGLOV), the world largest glove maker by capacity, anticipates that the tariff hike will lead US customers to seek alternative sources for rubber gloves outside of China.

&ldquo With the higher tariff on the import of gloves from China, the group pointed out that countries like Malaysia, Thailand, and Vietnam, which previously lost market share due to the extremely low pricing of Chinese manufacturers, will be the alternative source for US buyers,&rdquo Top Glove told  The Edge  when contacted. 

The group expects its US business to grow stronger going forward. Presently, the US is a major export market for Top Glove, accounting for 17% of its sales volume.

RHB Bank Singapore is maintaining &ldquo overweight&rdquo on the rubber products sector, expecting a meaningful demand recovery trend by 2H2024 as well as a pick up in average selling prices (ASPs), which would propel glove makers' profitability in 2024.   

In his June 18 report, analyst Oong Chun Sung notes that industry-blended ASPs are currently hovering at US$20-US$21 ($27.05-$28.40) per 1,000 pieces from US$20 in 1Q2024. RHB&rsquo s channel checks reveal that Chinese glove makers&rsquo ASPs are now ranging between US$17-US$18 from US$15-US$16 in 1Q2024.

Oong believes the continued narrowing of the ASP gap would mean the prolonged price war is approaching its tail-end, which ultimately allows Malaysian manufacturers to compete via product quality rather than price.

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  With 50% tariff by US next year, the ASP for Chinese gloves will be raised to about US$26 - US$27, with poor quality problems, the Malaysian glove makers will have upper hand in price and quality in selling in US market !!!