Gloves demand to remain robust in spite of vaccine
KUCHING: Gloves demand has been projected to remain robust as analysts opine that the existing vaccines are not wonder drugs, especially with the rise of the new strain of virus.
The research arm of Kenanga Investment Bank Bhd (Kenanga Research) recapped that latest reports on the highly contagious, new mutation of Covid-19 found in the UK “is already in the US” as more than 40 countries ban travel to and from the UK for 48 hours or more likely to cause more hospitalisations.
“To reduce the spread of Covid19 infection, vaccine coverage has to reach 60 to 70 per cent to achieve some degree of herd immunity,” Kenanga Research said in its rubber gloves sector update.
“Typically, herd immunity occurs when enough people in a population develop protection against a disease so that it can no longer spread easily among them.
“The UK has become the first country in the world to approve the Pfizer-BioNTech coronavirus vaccine.
“In the meantime, Covid cases have continued to rise globally.”
According to Kenanga Research, elsewhere, scaling up production of vaccines and distribution could pose a challenge which means the pandemic is likely to remain in 2021.
“Case in point, the US’ first known allergic reaction to the Pfizer Covid-19 vaccine in the US was reported in Alaska while some snarls emerge to stifle distribution throughout the country, highlighting daunting challenges ahead for a huge and comprehensive immunisation drive.”
The research arm also gathered that separately, two health workers in Britain suffered similar allergic reactions, prompting a government advisory to avoid getting the shot for those with a history of severe allergies.
Meanwhile, the research arm of Public Investment Bank Bhd (PublicInvest Research) opined that the rollout of Covid-19 vaccine has greatly dampened the sentiment on glove counters.
That said, PublicInvest Research highlighted that glove demand and average selling prices (ASPs) are still holding up well, considering the change in consumption pattern and heightened hygiene awareness.
“We understand that the glove makers’ capacities for current year 2021 (CY21F) have also been fully taken up, signalling that there are no signs of demand tapering off just yet.
“On a side note, with the new Covid strain that is reportedly faster spreading, the existing vaccines developed might not work as effectively in warding off the new strain, potentially prolonging the time needed to inoculate a sufficient percentage of the world population.”