In retail, the motto is: look for the path to success under difficult conditions. The fact is that despite a significant increase in the production of latex gloves, the decline in rubber consumption in the tire and car sector as a result of the worldwide factory shutdowns, some of which lasted for weeks, could not be offset.
The global economic downturn is therefore also affecting rubber and the rubber trade. There has been a decline in both demand and supply. As a result, the number of possible trading transactions and thus also the trading opportunities are automatically reduced.
The travel restrictions make it difficult to establish new business relationships and to interact with existing suppliers and customers.
Nonetheless, GloReg has managed to take advantage of various international bottlenecks. For example, rubber production in Malaysia has been over 50 percent lower than in the previous year due to the fact that many harvest workers and tappers are no longer allowed to work on the plantations. This brought and continues to bring numerous Malaysian and regional rubber factories into distress. GloReg took the chance and started off these factories with raw rubber.
The low rubber prices lead to uncertainty and frustration among farmers and producers, so that too few competitive offers come onto the market and, as a result, it is more difficult to find new, reliable suppliers in the growing areas.
In these circumstances - only by phone and email - developing and maintaining business and trading relationships is much more difficult and building a “full trading book” takes more time.
The fact that the GloReg trading department achieves satisfactory to even good trading volumes and corresponding profits in spite of these conditions is mainly due to the reliable processing of all sections of the trading processes, to which the responsible GloReg management pays the greatest attention. In times like these, market participants value and reward (on the buy and sell side) reliability and continuity.
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