Cautious Trade Seen For Malaysian Rubber Market Next Week

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Sept 20 (Bernama) -- The local rubber market is expected to trade range-bound next week as traders assess the global market environment.

Industry expert Denis Low said the rubber market would trade cautiously with a tendency to edge lower as global economic uncertainty weighs on demand. He noted that the incessant rain and heavy downpours in rubber-producing regions have created a short supply of rubber; however, weaker consumption worldwide, driven by an uncertain economic situation, is counterbalancing demand and prices.

Low noted that the Thai meteorological department (TMD) has warned that heavy rainfall may lead to flash floods, run-off and rough seas, while the weatherman in Malaysia has forecasted more heavy rain and flooding ahead as Malaysia transitions from the southwest to the northeast monsoon.

However, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market may trend upward, boosted by the US Federal Reserve's first interest rate cut of the year and its impact on future monetary policy. This, coupled with various efforts from China to stimulate consumption and trade, as well as weather conditions in rubber-producing nations, may indicate positive signs for rubber prices, the association told Bernama.

The Kuala Lumpur rubber market was closed for two days this week, on Sept 15 and 16, 2025 (Monday and Tuesday), in conjunction with Malaysia Day.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 10.5 sen to 726.5 sen per kilogramme (kg), while latex-in-bulk inched up by 2.5 sen to 578 sen per kg.

-- BERNAMA