The price of nitrile gloves has gone up

The price of nitrile gloves has gone up, but the profits of Chinese manufacturers have all declined simultaneously. Where did the lost profits go?

As one of the fastest-growing categories of disposable gloves globally in recent years, 

nitrile gloves have witnessed a wave of price hikes this year. This is related to the rising prices of the raw material nitrile latex,

 which has increased the production costs of the industry. 

However, the risk-resistance capabilities of manufacturers in different regions have shown a divergence.

The global production capacity of nitrile gloves is mainly concentrated in Asian countries such as Malaysia and China. 

Compared with Malaysian manufacturers, who are highly dependent on imported raw materials for nitrile gloves, 

Chinese manufacturers can achieve self-sufficiency in raw materials thanks to their complete local petrochemical industry chain. 

They should be the beneficiaries of this wave of glove price hikes.

However, contrary to expectations, in the first quarter of this year, most Chinese glove manufacturers found themselves in a 

"vicious circle" where they saw an increase in revenue but no corresponding increase in profits.

Where did the lost profits go?

Over the past few years, the entire glove industry has experienced significant ups and downs. 

From the beginning of 2020 to the first half of 2021, due to the COVID-19 pandemic, 

there was a severe shortage of both nitrile gloves and PVC gloves, and the prices of related products kept soaring. 

Driven by huge profits, glove manufacturers both at home and abroad expanded production. 

Coupled with the influx of new production capacity, global production capacity expanded rapidly. 

Starting from the second half of 2021, as industry demand peaked and new production capacity was gradually released, 

the entire industry entered a period of inventory reduction pain. 

It was not until the end of 2025 that the glove industry began to recover.

Among different types of disposable gloves, nitrile gloves are mainly used in medical examinations, 

electronic processing, food hygiene, household hygiene, public services, etc. 

Due to the advantages of nitrile gloves such as softness, good adhesion to the hand, and no allergens, 

their market share has been increasing in recent years.

According to the investor relations activity records disclosed by glove manufacturers recently, 

in the first quarter of this year, the profits of each manufacturer's nitrile glove business showed a positive trend 

under the industry price increase.

Although the nitrile glove industry has experienced a recovery, non-operational factors such as the exchange rate 

pressure caused by the appreciation of the RMB, the impairment losses due to the decline in the prices of financial products, 

and the impairment provisions for goodwill and inventory have been eroding the profits of manufacturers. 

These are the "culprits" that have led to the current overall decline in the performance of manufacturers.

Given that the United States, Europe, and Japan are the main consumer markets for nitrile gloves in the world, 

and Chinese glove manufacturers have a relatively high export proportion, in the context of the appreciation of the RMB, 

they will generally face exchange rate loss pressure in the first quarter of 2026.

The performance may reverse

With the increase in the prices of raw materials used in nitrile gloves, 

the global distribution of nitrile glove production capacity is undergoing a reshaping and migration.

For Chinese glove manufacturers, although the Malaysian manufacturers are the biggest competitors, 

the raw materials for Malaysian nitrile gloves rely on imports from places like South Korea, and the geopolitical 

conflicts have also led to a significant increase in the cost of energy such as natural gas and electricity in Malaysia. 

Under such circumstances, the cost competitive advantage of Chinese glove manufacturers becomes prominent, 

and their market share is expected to expand.

Currently, the price of butadiene is approximately 14,000 to 15,000 yuan per ton. 

The company has two wholly-owned and two equity-participated latex factories. 

The company's raw materials in the second quarter can ensure stable production, 

while some overseas manufacturers have reduced production due to the tight supply of raw materials.

Under the influence of the current conflict in the Middle East, 

overseas nitrile glove manufacturers have suffered significant impacts on raw materials. 

Because the raw materials such as crude oil for overseas refining manufacturers mainly rely on the Middle East, 

and the scale and resilience of the overseas refining industry are far less than that of China, 

the supply of butadiene and other raw materials has been greatly affected. 

Although the domestic butadiene price has also risen, due to the strong stability of the Chinese chemical industry,

 its supply has not been greatly affected.

In summary, in 2026, the industry will present the characteristics of "having orders but no raw materials, 

and difficult to expand production". This situation will drive the industry to undergo structural changes: 

the market concentration will continue to increase towards the top Chinese enterprises that have raw material guarantees, 

energy cost advantages, and scale effects. 

And the gross profit margin and net profit level of the entire industry are expected to reach a new level.