Rubber products sector facing downside risk over China policy

Over the recent quarter, the rubber glove industry has weathered the worst, given the sharp deterioration in operational earnings per glove.

PETALING JAYA: The rubber products sector faces renewed concerns over potential supply overcapacity, recent strengthening of the ringgit and a potential downside risk from China’s environmental policy.

Manufacturers have been given a longer grace period to convert coal-based burners to the more environmentally friendly gas-based burners. However, Affin Hwang Capital believes that the China government is still keen on improving the country’s air quality, and opines that the conversion will resume.