Kossan expects cautious recovery in global glove market in 2025
KUALA LUMPUR: Kossan Rubber Industries Bhd expects to navigate a cautiously improving global glove market in 2025, supported by steady restocking activity and a gradual structural recovery in demand.
The glove maker, however, noted that the outlook for the coming months remains mixed, with softer short-term demand expected—particularly in the U.S.—due to uncertainty surrounding ongoing tariff policy shifts.
Kossan said the temporary reduction of U.S. tariffs on Chinese-made medical gloves (from 145% to 80% for a 90-day period effective May 12, 2025) has added to the market's uncertainty.
'Average selling prices (ASP) in the U.S. market are expected to decline slightly due to lower raw material costs and intensified competition.
'Meanwhile, Chinese glove manufacturers are aggressively offloading its inventory into non-U.S. markets, contributing to broader shifts in market dynamics,' it said in a filing with Bursa Malaysia.
Despite the headwinds, Kossan believed that structural shifts in global supply chains and a stronger focus on quality, compliance, and sustainability would favour Malaysian manufacturers over the medium to long term.
In the first quarter ended March 31, Kossan posted a 13.3% higher net profit of RM35.6mil, or earnings per share of 1.40 sen compared with RM31.4mil, or 1.23 sen in the year-ago quarter.
Its revenue for the quarter rose to RM487.3mil versus RM451.6mil previously.
Kossan remained focused on improving efficiency through automation, digitisation, and upskilling its workforce to manage rising costs and protect margins.
The group said its growth strategy continued to centre on sustainability, guided by its Sustainability Blueprint 2035, with clear goals for low-carbon operations, responsible sourcing, and social compliance.
'Backed by a robust balance sheet and an agile production model, the group is well positioned to deliver sustainable growth and long-term value amidst a recovering yet dynamic global landscape,' it added.
Kossan expects the technical rubber products division to deliver satisfactory results in FY25, while the cleanroom division is forecasted to perform steadily with confident expectations of satisfactory results.
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