Rubber Market Likely To Trade Range-bound With Downside Bias Next Week

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Dec 28 (Bernama) -- The rubber market is expected to be trading range-bound with a downside bias next week as demand seems to be sluggish during the holiday season, said industry expert Denis Low.

Continuous rains in the rubber-producing regions are affecting the production of rubber and disrupting rubber-apping activities, he said.

Speaking to Bernama, Low said Thailand’s rubber output in December had decreased by nearly 30 per cent due to floods and heavy rainfall.

“With the lack of supply, the rubber market has somehow equalised itself with the lack of demand,” he said. 

Meanwhile, a dealer said local rubber prices will continue to track the performance of regional rubber futures markets, the ringgit’s performance versus the United States dollar, and benchmark crude oil prices amid ongoing concerns about the shortage of global natural rubber (NR) stocks due to rainy weather in major NR-producing countries.

“Market operators are also keeping an eye on further cues on China's stimulus and the latest developments surrounding global geopolitical tensions and economic indicators,” she added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 6.5 sen to 869 sen per kilogramme (kg) while latex in bulk decreased by 22 sen to 699.5 sen per kg.

At 5 pm yesterday, the price of SMR 20 stood at 876.5 sen per kg while latex-in-bulk was at 696.0 sen per kg.

-- BERNAMA