Malaysia Rubber Glove Stocks Soar as Crude Oil Prices Hit New High

Rubber glove stocks on Bursa Malaysia rallied on Thursday, driven by higher crude oil prices and price hikes by China's Intco Medical Technology Co Ltd.

Brent crude broke above the US$100 level earlier in the week, reaching US$102.69 per barrel at the time of writing, which raises the cost of nitrile, a key raw material input for glove manufacturers.

The price hike by Intco Medical, China's largest disposable glove manufacturer, saw prices rise 15-40 yuan (RM9-RM36) per carton, similar to levels in Malaysia.

An analyst noted that the move is likely a pivot to market share and profit-eating, as Intco had struggled to cut prices for three years.