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Last Updated: 13 March 2024

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KUALA LUMPUR, March 12 — Natural rubber (NR) production slipped by 0.2 per cent to 30,273 tonnes in January 2024 from 30,342 tonnes in December 2023, said the Department of Statistics Malaysia (DoSM).

Year-on-year comparison, however, showed that NR output rose by 2.8 per cent from 29,451 tonnes in January 2023.

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said 88.3 per cent of the production in January was contributed by smallholders and 11.7 per cent by the estates sector.

On inventory, he said total NR stocks grew by 6.5 per cent to 203,772 tonnes from 191,304 tonnes in December 2023.

He said rubber processing factories accounted for 92.0 per cent of the stocks followed by rubber consuming factories accounted for 7.9 per cent and rubber estates accounted for 0.1 per cent.

Mohd Uzir said Malaysia’s NR exports amounted to 43,111 tonnes in January, down 5.4 per cent from December 2023’s 45,591 tonnes.

China remained the main destination for NR exports, accounting for 32 per cent of total exports in January 2024, followed by the United Arab Emirates, which accounted for 13.5 per cent, Germany, which accounted for 13.0 per cent, the United States, which accounted for 7.3 per cent and India, which accounted for 6.3 per cent.

“The export performance was contributed by NR-based products such as gloves, tyres, tubes, rubber threads and condoms,” he said.

Mohd Uzir noted that gloves were the main exports among rubber-based products with a value of RM1.02 billion in January, a growth of 7.3 per cent from RM0.95 billion in December 2023.

According to DoSM, analysis of the average monthly price showed that concentrated latex recorded an increase of 8.9 per cent in January to 585.74 sen per kg, while scrap rubber increased by 7.4 per cent to 583.29 sen per kg.

“Prices for all Standard Malaysian Rubber (SMR) grades increased between 5.9 per cent and 8.8 per cent,” it said.

According to the Malaysian Rubber Board Digest in January 2024, the Kuala Lumpur rubber market showed a mixed trend throughout the month.

“Generally, the market sentiment was supported by favourable market fundamentals, especially tighter rubber supply due to wet weather in major rubber-producing countries,” it said.

— Bernama

https://selangorjournal.my/2024/03/malaysias-natural-rubber-output-eases-by-0-2-pct-in-january-2024-dosm/#google_vignette

Sumber : Selangor Journal

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Last Updated: 26 February 2024

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KUALA LUMPUR: Supermax Corporation Bhd in announcing its second quarter financial year 2024 results said that China glove manufacturers are likely to have taken over global leadership in the rubber glove market, at the very least in  terms of pricing.

In its filing with Bursa Malaysia Securities Bhd, Supermax said average selling prices (ASPs) remain suppressed with manufacturers from China proving to be daunting competitors.

At the two most recent large international trade shows, the take-away was that the oversupply situation is expected to moderate gradually over an extended period as the industry goes through a consolidation stage.

Smaller players are expected to exit the market while while the bigger players are scaling back their expansion and retiring older factories and production lines bowing out.

Supermax said a meaningful recovery in demand-supply is likely to only take place sometime in 2025, as it reportednarrower losses in the second quarter ended Dec 31, 2023 of financial year 2024.

It reported a net loss for the second quarter of the financial year 2024 (2QFY24), narrowed to RM44.4 million from RM108.07 million in the corresponding period of the previous year.

This was largely due to lower forex losses and higher interest income.

Revenue however fell 16.7 per cent to RM145.6 million from RM174.8 million in the corresponding period last year.

For the six-month period of FY24, Supermas reported a net loss of RM46.4 million, compared with a net loss of RM102.4 million for the same period in FY23.

This was despite a 23 per cent drop in revenue to RM323.5 million for the six-month period in FY24.

Currently, the Supermax Group is acquiring new contracts at existing low market rates and narrow profit margins.

"The company does not expect to see a significant improvement in performance for the rest of the year 2024 due to the high volume of high-priced stocks at its overseas distribution centres."Cost management measures have helped to improve the company's profitability to an extent but the high material costs and costs of utilities currently and going forward are expected to result in continued squeeze on margins," it said.

Supermax has strategically adapted to challenging market conditions by shutting down outdated manufacturing plants and investing in new, efficient facilities.

"The plan to build 6 new modern and more efficient manufacturing blocks is still in place, with production lines being installed gradually at a pace that takes into account the current and expected market conditions," the report said.

IThey are also expanding overseas operations, notably in the USA, to mitigate rising protectionism and import barriers.

"This initiative will place Supermax in a favourable position amidst the implementation of heightened import barriers, increased import duties, and a shift towards domestic production. "We anticipate this trend not only in the US but also in other major importing nations," the statement said.

Through investments in automation technology and production capacity, Supermax aims to reduce costs and enhance competitiveness, positioning itself for growth when the glove market rebounds in the next four to five quarters.

https://www.nst.com.my/business/corporate/2024/02/1015799/supermax-china-likely-have-taken-over-global-leadership-rubber

Sumber : New Straits Times