1. General situation of medical protective gloves industry

Disposable gloves are a necessity widely used in various scenarios in daily life. With the global economic growth and the increase in awareness of disease prevention and health protection, the glove market has matured and grown steadily. The global glove market has an average annual growth rate of about 8%. In 2020, when the new crown epidemic broke out, medical protective gloves, as the only hand isolation protective equipment, played a two-way isolation protection role and there are currently no alternative products. Their use in crowded places such as hospitals, shopping malls, and public transportation has greatly increased. The global demand for medical gloves has nearly doubled between 2010 and 2020, and the market demand is growing faster and faster. In 2020, the global demand for medical protective gloves is expected to reach 331 billion. In view of the increase in protection demand brought about by the new crown epidemic, industry demand is expected to break out in the short and medium term, and the supply of gloves will be the norm.

Disposable gloves used for protection during the epidemic can be divided into nitrile gloves, PVC gloves, latex gloves and PE gloves according to different materials. According to the quality level and use, they can be divided into medical grade and non-medical grade. Medical grade gloves are those that need to meet The products of the target country's medical market quality certification system or access standards are mainly used in medical operations, medical examinations, medical care and other fields. In particular, the demand for PVC gloves and nitrile gloves is growing the fastest. In 2017, the global demand for medical gloves was about 200 billion, of which the demand for PVC gloves was about 70 billion, and the demand for latex and nitrile gloves was about 200 billion.

2. Market competition pattern

At present, Malaysia and Thailand are the world's most important medical protective gloves production areas. In 2019, Malaysia's disposable gloves production accounted for about 63%, Thailand accounted for about 18%, and China accounted for about 10%. Among them, Malaysia's Top Glove is the world's largest manufacturer of nitrile, latex and surgical gloves, while my country's medical protective glove production companies are mainly Blue Sail Medical and Intech Medical, with an annual production capacity of 19 billion. It accounts for 5.71% of the world's glove production capacity. According to the data released by major companies, the major domestic glove manufacturers are expected to increase their production capacity ranging from 5 to 30 billion in the next two years.

Because the cost structure of major companies is similar, and raw materials account for most of the cost, the competition in the medical protective glove industry is fierce, and companies that can control upstream raw materials have more advantages in cost control. However, the downstream demand in the market is currently growing rapidly, so the industry is different from cyclical industries. The demand side brings steady growth in sales, and the supply side benefits from improved efficiency and prices fall, and overall growth is relatively stable. In addition, the medical protective glove industry is a considerable asset-heavy industry. The initial capital investment and production cycle are relatively long, so it is more risky for most SMEs to enter.

Three, raw material price fluctuations lead to rising costs

Whether it is PVC gloves or nitrile gloves, the cost of raw materials accounts for nearly 60% of the total cost. The price of PVC paste resin is affected by the price of petroleum or calcium carbide, while the raw material of nitrile gloves is mainly nitrile latex. At present, the domestic production of nitrile latex is more than 600,000 tons. Compared with the domestic market, Southeast Asia, headed by Malaysia, is the main production base of global rubber gloves, which meets about 65% of the global demand. The development space is quite attractive to domestic enterprises and stimulates domestic The factory increased its export efforts. From January to May 2020, China's export volume of nitrile latex was approximately 12,945 tons, an increase of 92.94% year-on-year.

Due to the overall increase in the cost of the medical equipment sector due to the epidemic, and some upstream manufacturers of raw materials have entered an overhaul period, the prices of PVC paste resin and nitrile latex will continue to rise from June 2020. Among them, the market price of disposable medical grade nitrile latex has risen from 8000-8500 yuan/ton to 22000-25000 yuan/ton, and individual manufacturers have increased to 27000 yuan/ton. It has been in the process of tentative increase. PVC paste resin The price climbed from more than 7,000 yuan to 16,000 yuan. The production cost of downstream medical gloves has been greatly increased. Since it takes time for new production capacity to be put into production, the high-yield and high-priced medical gloves market pattern in 2020-2022 has been determined.

Due to the overall increase in the cost of the medical equipment sector due to the epidemic, and some upstream manufacturers of raw materials have entered the maintenance period, the prices of PVC paste resin and nitrile latex will continue to rise from June 2020. Among them, the market price of disposable medical grade nitrile latex has risen from 8000-8500 yuan/ton to 22000-25000 yuan/ton, and individual manufacturers have increased to 27000 yuan/ton. It has been in the process of tentative increase. PVC paste resin The price climbed from more than 7,000 yuan to 16,000 yuan. The production cost of downstream medical gloves has been greatly increased. Since it takes time for new production capacity to be put into production, the high-yield and high-priced medical gloves market pattern in 2020-2022 has been determined.