PETALING JAYA: While the glove sector’s recovery is ongoing, threats are still lingering, according to TA Research.
The research house, which has an “underweight” stance on the sector, said despite the existing overcapacity situation, Chinese manufacturers are expanding into South-East Asia markets such as Indonesia and Vietnam.
The current estimates indicated that China could add 60 billion to 80 billion pieces of new capacity outside of the country in the coming years.
“As a result, any meaningful recovery is unlikely before end-2027,” TA Research said adding that the global oversupply would result in highly price-sensitive customers.
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