Rubber Market To Stay Volatile Next Week Amid Weather Woes, Global Uncertainty
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, Dec 21 (Bernama) -- The rubber market is expected to remain volatile next week, with potential for higher prices due to adverse weather conditions in major producing countries and a global shortage of natural rubber stocks, said the Malaysian Rubber Glove Manufacturers Association (Margma).
The association said the recent increase in China’s fiscal stimulus is also positive for demand.
“However, concerns over global economic growth and the latest development surrounding the geopolitical tensions in the Middle East may limit upward momentum.
“Prices will continue to track the performance of regional rubber futures markets, the ringgit’s strength against the US dollar and benchmark crude oil prices,” Margma told Bernama.
Industry expert Denis Low offered a more cautious outlook, predicting that the market would likely trade range-bound with a steady to very slight increase in prices amid sluggish demand amid the holiday season.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) declined by 20 sen to 869 sen per kilogramme (kg) while latex-in-bulk rose 15 sen to 721.5 sen per kg.
At 5 pm yesterday, the price of SMR 20 stood at 868 sen per kg, while latex-in-bulk stood at 723 sen per kg.
-- BERNAMA