Rubber Market Set For Modest Rise Next Week Amid Steady Demand Ahead Of CNY Celebrations

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, Jan 18 (Bernama) -- The rubber market is likely to move up slightly next week, with steady demand ahead of the Chinese New Year (CNY) celebration, said industry expert Denis Low. 

He also said that the Thai Meteorological Department warned that the northeast monsoon prevailing over the Gulf of Thailand and South of the Andaman Sea would strengthen over the weekend, bringing fresh and heavy downpours to the lower South of Thailand.

“This may cause flash floods and incessant downpours. This incessant rainfall would attribute to an inadequate supply situation and may push up prices and demand,” Low told Bernama. 

The volatile oil prices and the US dollar are also expected to impact prices and demand. Such acute volatility represents uncertainties and may warrant caution and fear at the same time.

“Hence, we may see a more measured approach to trading of this commodity,” he said.

The Malaysian Rubber Glove Manufacturers Association (Margma) said the rubber market may see volatility next week on the back of brewing trade tensions between the United States and China, with potential threats of a new trade war.

It said that the World Bank also warned that US tariffs could reduce the global growth outlook.

“Prices would continue to track the performance of regional rubber futures markets, the strength of the ringgit against the US dollar coupled with benchmark crude oil prices.

“The continued uncertain weather conditions in major rubber-producing countries will also continue to affect the ongoing rubber supply concerns,” said the association. 

On a Friday-to-Friday basis, the Kuala Lumpur rubber market traded mixed, with the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose 18.0 sen to 894.0 sen per kilogramme (kg), while latex in bulk decreased by 6.0 sen to 670.50 sen per kg.

-- BERNAMA