Rubber Market To Trade Sideways With Upward Bias Next Week

By Danni Haizal Danial Donald

KUALA LUMPUR, Oct 18 (Bernama) -- The Malaysian rubber market is expected to trade cautiously next week, moving sideways with a slightly upward bias, said industry expert Denis Low.

He said the exchange rate’s volatility will have a significant effect on rubber prices, presenting a dilemma as its cause tends to border on geopolitics rather than the real economy.

“Additionally, the Thai Meteorological Department (TMD) had issued a storm warning for southern Thailand as heavy rains loom. TMD also urged the public to remain cautious as stormy conditions sweep across Thailand.

“In Malaysia, the Meteorological Department has forecast thunderstorms, heavy rain and strong winds across Peninsular Malaysia,” he told Bernama.,

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said reports on renewed US-China trade war tensions announced today are likely to have a negative impact on the rubber market next week.

However, it noted that the positive global automotive industry outlook and anticipated rise in China production may boost demand, driving prices upward.

“This upward momentum, coupled with weather conditions in glove-producing nations that continue to suppress supply, will also drive prices upward. Based on these market forces, trading next week may experience a sideways performance.

“Rubber prices will also be highly influenced by regional rubber futures, fluctuations in benchmark crude oil prices, and the movement of the ringgit against the US dollar for the coming week,” the association said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) dropped by three sen during the week to 736.7 sen per kilogramme (kg) while latex-in-bulk slipped five sen to 569 sen per kg.

-- BERNAMA