Rubber Market Set To See Subdued Trading With Lower Bias Next Week

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, May 30 (Bernama) -- The rubber market is expected to see subdued trading with a slightly lower bias next week following the end of the wintering period, said industry expert Denis Low.

He said that with the full resumption of rubber production, trading activity is likely to be inclined towards replenishment only, given that supply is coming in adequately.

“Production has resumed to its full potential and with supply coming in nicely and adequately, unnecessary stocking and hoarding can be inadvisable.

“This will certainly lead to demand and prices having a tendency to be slightly lower,” he said.

However, Low added that the fluctuation of oil prices and the volatility of the US dollar may also have an impact on rubber prices and demand.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market outlook for next week is expected to remain soft due to the public holidays and may see sideways trading as oil prices continue to surge.

It said the European Union governments’ approval of legislation to remove import duties on United States goods could provide some support to sentiment.

“However, the West Asia conflict and ongoing trade tensions could weaken the economic outlook,” it added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose 33 sen to 922 sen per kilogramme (kg) while latex-in-bulk decreased six sen to 759 sen per kg.

The Kuala Lumpur rubber market will be closed on Monday, June 1, and Tuesday, June 2, in conjunction with the Yang di-Pertuan Agong's Birthday and Wesak Day replacement holiday. Trading will resume on June 3.

-- BERNAMA