“According to our channel checks, Chinese glove makers’ ASPs are expected to increase to US$16-US$17 from US$15-US$16. The continued narrowing of the ASP gap means the prolonged price war is approaching its tail-end, in our view, which ultimately allows Malaysian manufacturers to compete via product quality rather than price,” adds Oong.
RHB Bank Singapore analyst Oong Chun Sung has maintained “overweight” on the rubber products sector with Riverstone Holdings (SGX:AP4
) as one of its regional top picks.
In his April 2 report, Oong notes that the industry demand and supply dynamics are showing recovery signs as April - May order volumes seem to have sturdily picked up. The industry-blended average selling prices (ASPs) have also held up at US$20 ($27) per 1,000 pieces, he further points out.
