[Natural Latex] Interpretation of Malaysia's Natural Latex Supply and Demand Data in July

Interpretation of Malaysia's Natural Latex Supply and Demand Data in July

Supply side: Domestic production falls short of expectations, import volume continues to weaken, and supply is relatively low

Natural Latex Production in Malaysia

Malaysia's natural latex production in July 2023 was 2,192 tons, which was basically flat compared to June and a decrease of 18.75% from the same period last year. From the perspective of the seasonal output of natural rubber in Malaysia, after entering June, Malaysia entered the seasonal increase in production season, and the output of raw material recovered quickly, but July was also in the rainy season in Malaysia, and the overall rainfall this year increased slightly, which had a certain impact on the rubber cutting operation, and the actual output increase in the peak season was less than expected.

Natural Latex Imports in Malaysia

Malaysia's imports of natural latex in July 2023 were 16,500 tons, a narrow increase of 9.91% compared to June, but down 25.99% from the same period last year. While for the world's main consumers of natural latex, its domestic natural latex production is difficult to meet its own needs, and then their dependence on foreign raw material is high. But from the overall import situation this year, Malaysia's natural latex imports basically remain low, and some months are close to 50% lower than last year.

Downstream demand: glove demand remains weak, and there is currently no obvious growth point.

Natural Latex Consumption in Malaysia

Malaysia's natural latex consumption in July 2023 was 27,000 tons, basically maintaining a flat level from June and down 27.14% from the same period last year. As we all know, in the downstream consumption of natural latex in Malaysia, the consumption of natural latex gloves is in the first place, followed by the consumption of rubber threads, the consumption of foamed products and other natural rubber products is less, and the consumption of gloves to natural latex has a huge impact on the consumption of natural latex in Malaysia.

This year, the glove industry in China and Malaysia has suffered a greater impact, since the beginning of this year’s policy adjustment of epidemic prevention of global public health security incident, it has brought the glove industry an unprecedented winter market. Although some companies previously said that the hard situation of the market will soon end, so far, the glove industry has not appeared any new demand growth points, the global natural latex gloves industry is still weak.

Inventory: Actual demand declined, and concentrated latex stocks were relatively firm

Natural Latex Inventory in Malaysia

In July 2023, Malaysia's natural latex stocks were 16,800 tons, and the overall inventory situation changed relatively limited compared to June and the same period last year. Looking at the overall situation in 2023, except for the low inventory value in May, the overall change in inventory in other months so far is small.

In fact, the overall supply and demand data of natural latex in Malaysia this year is basically in a relatively stable state, and the range of change is relatively limited. This situation basically also means that the supply and demand situation of natural latex in Malaysia is basically in a low balance, and the glove industry, as its pillar industry, is expected that the overall supply and demand situation in Malaysia will basically maintain a slight fluctuation in the absence of other demand growth points, and the overall change is relatively limited.