Rubber Market To Trade Higher Next Week Amid Concern On Supply Disruption

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, April 4 (Bernama) -- The rubber market is expected to trend higher next week boosted by higher demand for the commodity amid supply disruption due to the West Asia crisis, an expert said.

Industry expert Denis Low said the war in West Asia continues, causing disruption to industry, commerce and the general well-being of all humanity. 

“While the oil and gas supply is choked up in the Strait of Hormuz, a magnified collateral damage is also taking place to all industries, which will cause the factories to be eventually shut,” he told Bernama.

Meanwhile, Low said the rubber trees are wintering and may end in end-April or early May, hence, shortages of the commodity is at the tail end and better productivity is anticipated in the weeks ahead.

"For the moment, the resulting shortage is exacerbated by better demand because of the war. Thus, the market will be volatile with an apprehensive outlook caused by the war," he said.

On the other hand, Low mentioned that the Thai Meteorological Department has forecast extreme heat, hazy skies and isolated thunderstorms with gusty winds in several regions, while the weatherman in Malaysia issued a fresh thunderstorm warning for large parts of the country.

He said the yo-yo oil prices and the volatile US dollar may have an impact on the prices and demand as well, representing uncertainties and may warrant caution at the same time.

The Kuala Lumpur rubber market was closed on April 3 for Good Friday and will resume operations next Monday.

On a Friday-to-Thursday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased 16.5 sen to 819.5 sen per kilogramme (kg) while latex in bulk surged 38 sen to 727.5 sen per kg. 

-- BERNAMA