Rubber products sector facing downside risk over China policy
“The change has helped ease the shortage in vinyl gloves and reduced the overall selling prices for vinyl gloves. “We still expect prices for vinyl gloves to rise, expediting the switch from vinyl gloves to latex or nitrile gloves,” said Affin Hwang Capital in a sector update report.
PETALING JAYA: The rubber products sector faces renewed concerns over potential supply overcapacity, recent strengthening of the ringgit and a potential downside risk from China’s environmental policy.
Manufacturers have been given a longer grace period to convert coal-based burners to the more environmentally friendly gas-based burners. However, Affin Hwang Capital believes that the China government is still keen on improving the country’s air quality, and opines that the conversion will resume.
“The change has helped ease the shortage in vinyl gloves and reduced the overall selling prices for vinyl gloves.
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