Rubber Market Expected To Remain Flattish Next Week

By Muhammad Fawwaz Thaqif Nor Afandi and Abdul Hamid A Rahman

KUALA LUMPUR, Jan 17 (Bernama) -- The rubber market is expected to remain flattish next week, with demand and prices likely to move sideways, said industry expert Denis Low.

However, he explained that stockists and users may maintain some stocks amid uncertainty in various continents, leading to heightened volatility in the interim.

He also told Bernama that climate uncertainty is causing weather conditions to be unpredictable as the usual breather months in between monsoon and wintering that allow for improved rubber productivity and stocking are apparently being challenged.

“Incessant monsoonal rainfall is continuing while wintering of the rubber trees seems to be setting in earlier than normal. Wintering of the rubber trees usually takes place from end February to April where yield can be lowered by about 45 to 50 per cent,” he said.

He said that besides this phenomenon, there is certainly going to be uncertainty created by the political situations in Europe, the Middle East and South America. 

“If war breaks out, it may cause rubber demand to move up sharply or demand can be decreased to an alarming extent,” he said.

He also said the unstable oil prices and the volatile United States (US) dollar may have an impact on prices and demand as well.

Recently, Oxford Economics graduate economist Jack Reid told Bernama that Brent crude prices are expected to face sustained downward pressure throughout 2026, with prices projected to end the year at around US$57 per barrel, as additional supply enters a global oil market that is already in surplus.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell 12.5 sen to 760.5 sen per kilogramme (kg) while latex in bulk rose one sen to 576 sen per kg.

-- BERNAMA