Rubber Market To Be Balanced Next Week, Amid Rainfall, CNY Supply Disruptions

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Feb 1 (Bernama) -- Rubber market prices are expected to be trading at equilibrium next week, with supply and demand dynamics offsetting each other due to the incessant rains in rubber-producing countries and the long Chinese New Year (CNY) holidays, said industry expert Denis Low.

He said there will be sporadic buying and replenishment activities of stock based on current usage.

“Prices should remain flattish with a slight tendency to be higher mainly due to the uncanny weather in the rubber-producing region, which would affect the rubber production during this period,” he told Bernama.

Quoting the Meteorological Department of Thailand (TMD) forecast, Low said there would be a significant drop in temperatures across Thailand, particularly in the northeast region.

He said that as the Southeast Asian monsoon intensifies, it will lead to more rainfall in the southern regions and cold temperatures with strong winds in the northern regions.

“TMD has advised residents to take care of their health due to the colder weather.

“Rubber production will be further hampered by the heavy rainfall, potentially leading to shortages,” he said.

Meanwhile, a dealer expected the rubber market to trade downward on a weekly basis due to mixed signals from regional rubber futures markets reacting to the uneven economic performance of the United States (US) and China.

She said sentiment would be pressured by the strengthening of the ringgit against the US dollar and declining crude oil prices following the latest tariff declarations by the US.

“However, further losses were limited by expectations of upcoming Chinese stimulus measures aimed at addressing economic challenges, along with the US Federal Reserve’s decision to keep interest rates unchanged,” she said.

This week, the Kuala Lumpur rubber market closed from Jan 28-30, 2025, for the CNY holidays and resumed its operations on Jan 31, 2025.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 7.0 sen to 884 sen per kilogramme (kg), while latex in bulk declined by 4.0 sen to 677 sen per kg. 

-- BERNAMA