Rubber Market Likely To Trade Range-bound With Downward Bias Next Week

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Jan 4 (Bernama) -- The rubber market is expected to trade range-bound with a slight downward bias due to a lack of demand next week, industry expert Denis Low said.

He said the rubber market would encounter a softer week as the lack of supply situation would also see a lack of demand.

“The market would face the wintering season, whereby the rubber trees will shed its leaves causing lower rubber yield. 

“Such a situation will normally push up the rubber latex price,” he told Bernama.

However, this phenomenon may happen in February, March and early April, he added.

Meanwhile, Malaysian Rubber Glove Manufacturers Association (Margma) said the rubber market should appear mixed next week as supply disruptions prevail due to erratic weather conditions in rubber-producing countries.

The association said prices would likely continue to track the performance of futures rubber markets, while the strength of the ringgit and developments surrounding global geopolitical tensions and China's stimulus would likely dictate market direction.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) slid by 9.5 sen to 867 sen per kilogramme (kg) while latex in bulk decreased by seven sen to 689 sen per kg.

MRB also noted that it would publish the rubber reference price once daily at 3 pm, starting Jan 2.

-- BERNAMA