Rubber Market To Stay Volatile Next Week On Supply Concerns

By Anas Abu Hassan

KUALA LUMPUR, March 1 (Bernama) -- The Malaysian rubber market is expected to remain volatile next week, driven by mixed signals from regional markets and concerns over supply constraints, according to the Malaysian Rubber Glove Manufacturers Association.  

It said rubber prices would likely be affected by tightening natural rubber supply due to the onset of winter and rainy weather, as market players track regional rubber futures and foreign exchange movements.  

"There are many concerns surrounding United States (US) trade tariffs and US-China trade relations, coupled with Russia-Ukraine peace talks, which may cause fluctuations in regional rubber futures markets and crude oil prices," the association told Bernama. 

Meanwhile, industry expert Denis Low projected the rubber market to trade slightly higher next week, mainly due to stocking activities amid uncertain weather conditions.  

"With climate change and rapid temperature fluctuations, rubber production will be disrupted, pushing prices higher. Another contributing factor to slower production is the impending Ramadan fasting month, during which tapping activities may be affected.

"As such, we expect heightened stocking activities ahead of the shortfall," he said. 

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell 6.5 sen to 914.5 sen per kilogramme, while latex in bulk added 16.5 sen to 712.5 sen per kg. 

-- BERNAMA