Rubber Market Likely To Stay Subdued Next Week
By Siti Noor Afera Abu
KUALA LUMPUR, Feb 8 (Bernama) -- The Malaysian rubber market is expected to remain muted next week, with prices and demand holding mostly steady, though with a slight inclination towards a downward trend, said industry expert Denis Low.
He said there is a growing concern about a slowdown in global economic growth and there is a worry that China’s weakening energy consumption may also affect commodities, including rubber.
“Going forward, it is wise to be cautious and traders will be extra careful in stock-holding,” he told Bernama.
Low said according to Thailand’s Meteorological Department forecast, the weakening of the high-pressure atmosphere over northeastern Thailand led to a temperature drop of two to three degrees Celsius, with strong winds unlikely to bring additional or heavy rainfall.
Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) stated that prices will continue to track the performance of the regional rubber futures market, the ringgit’s strength and the uncertain weather conditions in major rubber-producing nations.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) went up by 6.0 sen to 890 sen per kilogramme (kg), while latex in bulk rose by 12.5 sen to 689.5 sen per kg.
-- BERNAMA