Sri Trang is planning an initial public offering of its rubber glove subsidiary, Sri Trang Gloves Thailand, shares following a COVID-19 linked surge in demand for its products, Nikkei reports. The firm plans to spend the funds raised on adding 18.5% to its annual production capacity. That will increase competitive pressure on Malaysia’s Top Glove which, as outlined in Panjiva’s research of March 20, is in the midst of adding 11.2% to its capacity.

Panjiva data shows that U.S. seaborne imports linked to Sri Trang Gloves got underway in April 2017 and increased by 21.1% year over year in Q1. There may have been a reversal, however, with data for the first 15 days of April showing a 32.0% drop compared to a year earlier. Leading importers in the past 12 months include Fresenius and Genuine Parts as well as the firm’s own shipments for onward sale.

Chart segments U.S. seaborne imports linked to Sri Trang Gloves by consignee on a monthly and three-month average basis. Source: Panjiva

Total U.S. seaborne imports of rubber gloves meanwhile fell by 6.6% year over year in March and by 20.1% in the first half of April. Aside from the slide in shipments linked to Sri Trang there was a 61.1% slide in shipments linked to Kossan Rubber. The latter continued a longer-term downtrend and so may not be just COVID-19 linked. 

Other shippers have been able to increase deliveries though with imports linked to Top Glove having risen by 47.4% in the first half of April while Owens & Minor’s surged 147.2% higher. It’s worth noting that total U.S. imports will also have been helped by the roll out of “Project Airbridge” deliveries too.

Chart segments U.S. seaborne imports of rubber gloves by supplier. Source: Panjiva