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Author: icn88   |   Latest post: Thu, 21 Mar 2019, 8:52 PM

 

Why Kossan is the Winner from Crude Oil Plunge?

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Image result for kossan rubber

 

Higher cost saving from falling crude oil price.

 

The impact of crude oil price on glove sector will be indirect on the price of raw material, nitrile. Nitrile prices move in correlation with the price of their main feedstock, butadiene, which in turn follows the footsteps of crude oil prices.

This relationship is backed by strong correlations between crude oil and butadiene of 0.82, as well as butadiene and nitrile of 0.87.

Hence, the weakening of crude oil price will result in lower prices of butadiene – a globally traded chemical – leading to lower nitrile prices.

From the sensitivity analysis carried out, the findings showed that the main beneficiaries in an environment of falling nitrile prices are Kossan, followed by Top Glove and Hartalega.

We understand that our findings may be contradictory to the general view which expects Hartalega, the world’s largest nitrile glove manufacturer, to top the list. The contrasting result is due to less amount of nitrile used by Hartalega, as they are producing the world’s lightest nitrile gloves, weighing a mere 3.7g.

 

Higher cost saving from falling rubber price

 

 

 

Higher profit margin from strengthning of USD/MYR

 

 

 

 

 

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Labels: KOSSAN

Related Stocks

Chart Stock Name Last Change Volume 
KOSSAN 4.13 +0.02 (0.49%) 263,200 

  Be the first to like this.
 
CharlesT The pirated version of icon8888?
25/11/2018 9:12 AM
wiki123 lol.... why don't say tguan or those plastic guys as well?
25/11/2018 11:21 AM
qqq3 CharlesT The pirated version of icon8888?

but not bad...I better put in my favorite page....
25/11/2018 11:23 AM
madguy that time at 4.00 when market drop and harta drop. i should hv grab it
25/11/2018 12:55 PM
newbie911 Harta and tg alr up over 50% in 1 year.
Why kossan stuck at old price?
25/11/2018 12:57 PM
paperplane Hehe
25/11/2018 2:30 PM
emmcee simple and understanding
25/11/2018 10:49 PM


 

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