Malaysian Rubber Market Likely To Trade Range-bound Next Week

By Danni Haizal Danial Donald & Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Aug 3 (Bernama) -- The local rubber market is expected to trade range-bound with a slight tendency to be higher next week, said industry expert Denis Low.

He said uncanny weather conditions have hampered rubber production, pushing up prices.

“We expect prices and demand to continue equitably on the back of lower yield due to the unpredictable weather in rubber-producing regions.

“Shipping capacity continues to be hampered by ongoing unrest around the Red Sea. This has affected supply chain and commodity prices may continue to be volatile,” he told Bernama.

The Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market should remain cautious in anticipation of US interest rate cuts in September and China’s latest stimulus measures to spur economic recovery.

“There will be ongoing concerns over tight natural rubber supply in the near term owing to inclement weather forecast in major natural rubber producing countries amid raised optimism for a September US interest rate cut to support prices,” it said.

MARGMA also said rubber prices will continue to track regional rubber futures market performances.

“We should also be keeping a close watch on the Middle East geopolitical conflicts and global economic performances,” it added.

The local rubber market for the week just ended traded mostly higher due to gains in crude oil prices. 

On a Friday-to-Friday basis, the Malaysian Rubber Board’s (MRB) reference price for SMR 20 increased three sen to 775.5 sen per kilogramme (kg) from 772.5 sen per kg last week, while latex-in-bulk rose eight sen to 633.5 sen per kg from 625.5 sen previously.

At 5 pm, the MRB reference price for physical SMR 20 was 788.5 sen per kg, while latex-in-bulk was 633 sen per kg.

-- BERNAMA