{
  "id": 2897406,
  "title": "Hormuz disruption threatens NBR supply, could lift glove prices",
  "url": "https://urgent.news/2026/08/24/hormuz-disruption-threatens-nbr-supply-could-lift-glove-prices",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-24T00:01:03.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1517458/hormuz-disruption-threatens-nbr-supply-could-lift-glove-prices"
  },
  "original_language": "en",
  "account": "Disruptions to Middle Eastern naphtha supply flows could slash global nitrile butadiene rubber (NBR) availability by up to 24%, according to Hong Leong Investment Bank Bhd (HLIB). Analyst Chee Kok Siang believes this could temporarily help glove makers by easing the industry's oversupply issue. Continuous closure of the Strait of Hormuz could potentially boost average selling prices for gloves, masking concerns over structural oversupply in the short term. Holding a \"Hold\" rating on Kossan Rubber Industries Bhd, Chee maintains an unchanged target price of RM1.24 for the stock. Kossan's share price has corrected since mid-June, suggesting a more favorable risk-reward ratio. The bank sees Kossan's recent acquisitions of cleanroom product distributors as aligned with its long-term strategy of differentiating from Chinese competitors through specialized rubber gloves. Inout Enterprise, a target of Kossan's proposed acquisitions, reported RM20.9 million in revenue and RM1.8 million in profit after tax for the year ending December 2025, yielding an 8.4% profit margin. Comparatively, Kossan's profit margin is lower at 7.3%. HLIB left its earnings forecasts unchanged, pending Kossan's second-quarter financial results for FY26 and the transaction completion. The proposed acquisitions could add 6.1% and 5.6% to Kossan's core profit attributable to shareholders in FY27 and FY28, respectively. HLIB also noted Kossan's robust RM1.63 billion net cash position, equating to RM1.63 share or 59% of its market capitalization, and potential profit margin improvements from automation initiatives expected to be realized by end-2026.",
  "summary": "KUALA LUMPUR: Disruptions to naphtha supply flows from the Middle East could reduce global nitrile butadiene rubber (NBR) availability by as much as 24 per cent, according to Hong Leong Investment Bank Bhd (HLIB).",
  "key_points": [
    "Disruptions to Middle Eastern naphtha supply could cut NBR availability by up to 24%.",
    "Continuous Strait of Hormuz closure may temporarily boost glove prices.",
    "Kossan Rubber Industries sees acquisitions as strategy to differentiate from Chinese competitors."
  ],
  "editors_take": "Disruption to Hormuz naphtha supply flows could temporarily ease oversupply concerns for glove makers, potentially boosting average selling prices and benefiting companies like Kossan Rubber Industries Bhd in the short term.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times",
        "title": "Iran threatens Hormuz rule violators",
        "url": "https://urgent.news/2026/08/24/iran-threatens-hormuz-rule-violators",
        "published": "2026-08-24T02:44:54.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}