Rubber Market Likely To See Flat Trading Next Week
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Oct 26 (Bernama) -- The local rubber market is expected to trade in a flattish mode next week, with demand and prices remaining soft, according to industry expert Denis Low.
He said the market will also experience a sideways trend due to the usual stock replenishment activities, while interest in additional rubber stocking purchases will remain muted for the time being.
“The uncertainty in the global economy could lead to volatility in prices and demand; however, for now, the market will primarily see the usual replenishment activities,” Low told Bernama.
He also said the proposed 12-month delay of the European Union Deforestation Regulation (EUDR) has brought relief to some international companies and governments.
However, many environmental organisations have criticised the postponement, said Low.
“This may also slow down the rubber stocking activities due to compliance uncertainty and potential market changes,” he said.
Meanwhile, the Malaysian Rubber Gloves Manufacturers Association (MARGMA) remains cautiously optimistic about the rubber market outlook, driven by rising crude oil prices and a strengthening of the United States economy, despite ongoing supply concerns.
“Challenges such as a slight decline in latex prices, mixed economic performance in China, and geopolitical tensions in the Middle East contribute to market volatility,” it said.
MARGMA said although growth in China’s automotive sector may provide some uplift, it remains vigilant and will closely monitor these evolving dynamics as we navigate the upcoming weeks.
Another dealer said market operators will continue to monitor global economic indicators, especially cues on US interest rate cuts and the effectiveness of Chinese stimulus on economic performance.
“They will also keep an eye on developments related to the EUDR, the Middle East conflict, and the outcome of the US elections,” she said.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 9.5 sen to 862.5 sen per kilogramme (kg) from 872 sen per kg last week.
Latex-in-bulk went down by 7.5 sen to 750 sen per kg from 757.5 sen per kg.
At 5 pm, physical SMR 20 stood at 855 sen per kg, while latex-in-bulk was at 746.5 sen per kg.
-- BERNAMA