The management provides critical insight into how US tariff policies are reshaping global trade flows in their industry. Chinese manufacturers are redirecting both finished gloves and raw latex to non-US markets, potentially creating pricing pressure in Apcotex's key export markets including Europe and Asia.

“Obviously the difference between last time and this time is that last time it was specifically—I mean last time when we met in January, it was specifically on Chinese gloves that the US had imposed 50% duty starting Jan 1st. Now what's changed dramatically was on April—this was since early April—is that tariffs were announced across the board and then, you know, reverted back, and now obviously only China has more than 100%—I don't even know the number anymore; it keeps changing—but more than 100% tariffs on all products from what I understand.”

“So as a result of which, of course, the Chinese glove industry has been affected and what we are seeing is that what we are hearing from our customers is that now China is—it's not viable for them to supply to the US. They're, you know, coming to all Europe and Asia and other parts of the—they're seeing more Chinese gloves hit those markets. And similarly on the latex as well, because their overall glove—what I understand—glove industry has been affected in China, they have excess latex, so that's also coming out of China and we are seeing it in some markets.”

This statement reveals a critical aspect of Apcotex's business model that investors may overlook: the company focuses on maintaining a consistent delta (margin) between raw material costs and selling prices rather than benefiting directly from crude price movements.

“Historically we have seen in the short term it's not so beneficial because when prices fall so sharply, we are, you know, we are left with some inventory, both finished goods and raw material, and that's going to be the challenge really this quarter in Q1 because as you've seen that, you know, compared to March end to now, crude oil has really fallen around. It's I think it's Brent crude is almost $60, a little over that, but around that versus it was, you know, over $80 perhaps a couple of months ago.”

“So in the long term, of course, we—I think we all prefer lower oil prices. It does help more about the margins.”

“Absolutely. And honestly, the crude prices for us, you know, unlike maybe FMCG [Fast-Moving Consumer Goods] companies that are using crude as a base—or FMCG is the wrong word, but any company where—yeah, you know, where—I don't think for—okay, let me put it this way. I don't think crude prices in the long term affect us too much, whether they're up or down. We obviously prefer them lower than higher. But but in general, it's about the the margin between our raw material prices and the finished goods prices.”

“So being a B2B [Business-to-Business] company, we have to move quickly and reduce and increase prices as the raw material prices go up and down, because we have a delta that we focus on.”