Rubber Market To Trade Slightly Lower On Sluggish Demand Next Week
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, March 8 (Bernama) -- The Malaysian rubber market is expected to trade slightly lower next week amid sluggish demand, as production is anticipated to decline following the ongoing wintering of rubber trees, said industry expert Denis Low.
He noted that the Thai Meteorological Department had issued a weather warning for a summer storm with heavy rain, strong winds, hail, and lightning, which is expected to affect 40 provinces.
"Another major source of volatility in the market is the fluctuating exchange rate. We are seeing significant swings in the United States (US) dollar against other currencies worldwide, and this is not conducive to the marketplace," he told Bernama.
Echoing Low's sentiment, the Malaysian Rubber Glove Manufacturers Association said the natural rubber supply will remain tight due to the wintering season and rainy weather.
Meanwhile, it noted that other factors impacting the market include trade wars, United States (US) tariff policies, and geopolitical tensions, particularly the US-China trade relations.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 15.0 sen to 899.50 sen per kilogramme (kg), while latex in bulk declined by 4.0 sen to 708.00 sen per kg.
-- BERNAMA