Global medical glove industry under the epidemic: the industry accelerated production expansion, and the resonance between demand and cost brought profit outbreak


Global glove industry under the epidemic: the industry has accelerated production expansion, and the resonance between demand and cost has led to profit outbreak. Affected by the epidemic, enterprises have accelerated production expansion: as a stable growth global business, glove industry, Malaysia, Thailand, China and other enterprises have adopted the method of continuous production expansion to maintain supply, and the daily capacity utilization rate is about 80%; Driven by COVID-19, glove demand continues to erupt at this stage, and it is also expected to be affected by the epidemic in the long run, bringing about an increase in usage habits and per capita consumption, thus accelerating the development of the industry. Since 2020, enterprises have been accelerating the expansion plan. The demand and supply side work together to bring about a shortage of disposable gloves:

Demand side: as of June 6, about 6.9 million new crown patients have been diagnosed worldwide. Meanwhile, the number of confirmed patients in the United States, Brazil, Russia, India and other countries is still growing rapidly. Affected by the epidemic, the demand for disposable gloves is expected to continue to rise:

Supply side: due to the long expansion time of nitrile, PVC and other gloves (the expansion of production line for 6-9 months, about 100 million yuan needs to be invested for the construction of production capacity of 1 billion gloves), all enterprises are in full production state; Wang Jialun, executive chairman of Lanhuo medical, said that since March, glove orders in Europe and the United States have surged, which is close to twice the company's current production capacity. The corresponding company can only increase the production capacity by about 20% in the current period, and the product delivery period has been extended from 30 days to 150 days at most. It is expected that the global glove production capacity will continue to be in short supply for a long time.

 

Multi factor resonance promotes the outbreak of glove business in domestic enterprises: for domestic glove manufacturers, COVID-19 makes products benefit in many aspects, such as selling price, sales structure, production cost, etc.

 

Sales side:

 

Sales price: before the epidemic, the average selling prices of PVC gloves and nitrile gloves were 80-100 yuan and 130-150 yuan / box (1000 pieces) respectively. At this stage, the price is expected to increase by about 5-9 times (among which the price increase of nitrile gloves is greater than that of PVC gloves), and the orders of all enterprises are in a relatively full state.

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