The disposable glove industry reaches an inflection point of both volume and price growth, with leading companies accelerating their strategic deployment.

Securities Daily Reporter Wang Xi

Recently, influenced by international geopolitical tensions, crude oil prices have risen, leading to continuous increases in various chemical raw material prices. This has pushed a seemingly insignificant daily item—disposable gloves—toward a new industry cycle inflection point.

Monitoring data from Shandong Zhuochuang Information Co., Ltd. (hereinafter referred to as “Zhuochuang Information”) shows that the prices of core raw materials for disposable gloves—such as butadiene, acrylonitrile, DOTP (dioctyl terephthalate, an environmentally friendly plasticizer), and octanol—have all increased by double digits since March. Under cost pressures, many leading companies in the disposable glove industry have recently had to raise their product ex-factory prices.

After four years of capacity cleanup, will this cost-driven price transmission mark a true “volume and price increase” turning point for the industry? What strategic considerations are leading top companies to plan their layouts?

Industry Enters Price Hike Cycle

The core raw material for nitrile gloves, nitrile latex, is polymerized from butadiene and acrylonitrile; PVC gloves require PVC paste resin, DOTP plasticizer, and octanol, which are also key products in the petrochemical industry chain. This “crude oil—basic chemical raw materials—intermediates—finished products” three-tier transmission path ensures that every sharp fluctuation in international oil prices quickly propagates to the glove end products.

Currently, the entire industry chain is in a tense and differentiated state. Song Xuemei, an analyst at Zhuochuang Information specializing in the butadiene industry, told Securities Daily: “In early March, butadiene prices surged rapidly, with an increase of about 50% by mid-month. Downstream companies’ purchasing enthusiasm significantly weakened, but supply simultaneously decreased, so the market has not yet shown a clear turning point.”

This pressure quickly transmitted to the intermediate stage. Sun Bing, an analyst at Zhuochuang Information focusing on nitrile latex, revealed: “In the first half of March, the price of nitrile latex used for disposable gloves increased by about 52% compared to the end of February. Most factories shut down, downstream buyers refused high-priced sources, and new orders declined. However, glove factories still have good order intake, and overall demand remains.”

Lianfa Medical Co., Ltd. (hereinafter “Lianfa Medical”) recently confirmed this situation during an investor communication: “Currently, upstream raw material prices are highly volatile, many suppliers have stopped quoting, and the market is in a ‘buying spree.’ Leading manufacturers still need to actively secure resources, while smaller factories find it more difficult to obtain suitable-priced raw materials.”

If rising costs are the “igniter” forcing glove manufacturers to raise prices, then the optimization of the supply structure provides the “fuel” for this price hike.

From a longer-term perspective, after rapid capacity expansion in the disposable glove industry from 2020 to 2021, a deep adjustment has been underway from 2022 to 2025, with the exit of small and lagging capacities and a continuous increase in the market share of leading companies. Supply and demand are gradually improving. Recent research reports from multiple institutions suggest that after harsh destocking and capacity cleanup, the industry’s supply-demand pattern has become relatively balanced, and terminal prices are now poised for moderate increases.

Against this backdrop, the cost transmission triggered by geopolitical factors has become a key catalyst for the industry shifting from “volume growth and price decline” to “both volume and price increase.” According to Lianfa Medical, raw material cost increases have broken through previous pricing bases, making price hikes necessary to ensure supply chain stability. Moreover, this round of price increases is not merely a cost hedge; globally dominant companies are also leveraging this to push for price recovery and expand profit margins.

Lianfa Medical further stated that after multiple industry cycles, the competitive landscape has become concentrated among leading players. From a supply chain perspective, ocean freight cycles are long, and downstream procurement demand is rigid. The price increase trend is expected to continue for some time, and manufacturers with raw material cost advantages will see more significant profit releases in the second quarter.

Leading Companies Optimize Layout

At a critical moment when the disposable glove industry is approaching a turning point, industry leaders are accelerating strategic layouts based on their respective situations.

Inco Medical Technology Co., Ltd. (hereinafter “Inco Medical”) benefits from ample cash reserves and leading production efficiency, giving it a first-mover advantage. According to a research report from Orient Securities, Inco Medical mainly uses third-generation production lines, which are industry-leading in line speed, with a long-term stable yield rate above 99%. The company has also implemented comprehensive energy-saving upgrades through “waste heat recovery + intelligent control with variable frequency + key component upgrades,” and has expanded upstream to reduce the impact of raw material fluctuations on costs. Coupled with its ongoing diversification strategy, Orient Securities believes its market position is likely to further improve.

Lianfa Medical has completed its “final piece” of operational layout through a series of capital operations by the end of 2025. According to company announcements, Lianfa Medical utilized a $200 million strategic investment from HuaKee Co., Ltd., a Thai industrial investor, and invested 800 million yuan to bring two major nitrile glove production bases under the control of its subsidiary, Shandong Lianfa Health Technology Co., Ltd., achieving an annual capacity of 24 billion nitrile gloves on a unified platform, now operating at full capacity and sales. Additionally, it acquired an 80% stake in Zibo Hongda Thermal Power Co., Ltd., owned by the actual controller, for 400 million yuan, fully addressing energy cost issues in its nitrile glove business.

On March 17, Liu Wenjing, Chairman of Lianfa Medical, told investors that the disposable glove industry has entered a healthy cycle, with increasing industry concentration. Currently, gloves are benefiting from price transmission along the supply chain, expanding profit margins. With the company’s strategic deployments and the gradual mass production of high-potential products like polyurethane gloves developed jointly with Wanhua Chemical Group, Liu expects Lianfa Medical’s performance to recover by 2026 and to maintain steady growth during the “14th Five-Year Plan.”

Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance, told Securities Daily that the global disposable glove industry has entered a new stage of “limited new supply and optimized stock.” Leading companies are upgrading technology and consolidating capacity, shifting industry competition from scale expansion to simultaneous improvements in quality and efficiency.