As the U.S. increases tariffs on Chinese glove manufacturers starting this year, Malaysian glove manufacturers are expected to benefit. This is anticipated to lead to a boost in sales of nitrile butadiene latex (NB latex) by domestic petrochemical companies such as Kumho Petrochemical and LG Chem. NB latex, a key material for surgical rubber gloves, is being exported by South Korean petrochemical companies to Malaysia.

According to industry sources on January 20, the U.S. will impose a 50% tariff on Chinese-made gloves starting this year, with plans to increase it to 100% by 2026. Following this decision, there is growing attention on the potential surge in sales for Malaysian manufacturers, who had lost market share in the U.S. market. Alongside this, there is widespread expectation that the sales of South Korean NB latex manufacturers will also rise.

Top Glove, the world's largest glove manufacturer in Malaysia, reported in its Q1 2025 earnings that sales to North America increased by 21% compared to the previous quarter and surged by 120% year-on-year. Last year, the company's factory utilization rate was only 45%, with a production capacity of 60 billion units, but actual production reached only 26.9 billion units. However, with the rise in North American sales, the Q1 utilization rate significantly increased to 66%. The company plans to expand its total production capacity to 70 billion units this year.

In this context, the surge in sales from Malaysian and Thai clients is expected to lead to an increase in sales for South Korean NB latex manufacturers as well, fueling expectations for improved profitability.

In South Korea, Kumho Petrochemical and LG Chem are producing NB latex. The completion of Kumho Petrochemical's capacity expansion investment is also seen as a positive factor. Kumho Petrochemical invested approximately 276.5 billion KRW in its Ulsan plant, completing mechanical construction in the first half of last year. Through this expansion, Kumho Petrochemical increased its annual NB latex production capacity from 710,000 tons at the end of last year to 956,000 tons. Analysts predict that the expanded facilities will lead to increased sales volumes from its clients.

LG Chem is also expanding its NB latex business. The company produces approximately 550,000 tons across its plants in South Korea (200,000 tons), China (110,000 tons), and Malaysia (240,000 tons). Notably, the utilization rate of its Malaysian plant rose significantly to over 60% in the second half of last year, fueling expectations for further capacity increases.

The increase in the export unit price of NB latex is also seen as a favorable development. As of May 2022, the export price of NB latex per ton was $1,052. It then dropped to $638 in July 2023 but rose to $874 in November of the same year. There is widespread expectation that this upward trend will continue in the medium to long term.

Moreover, as the inventory accumulated during the COVID-19 pandemic has been cleared, the utilization rates of glove manufacturing plants in Southeast Asia are reportedly gradually increasing. As a result, industry experts believe that export prices will continue to rise.

An industry insider stated, "Southeast Asian glove manufacturers will be the primary beneficiaries of the U.S. tariff measures, and as a result, domestic material suppliers are expected to see positive effects within this year." They added, "While supply has increased in the market, the key factor going forward will be whether demand continues to support this growth."

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