Rubber Market To Trade Range-Bound Next Week Amid Supply Concerns

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, April 11 (Bernama) -- The rubber market is expected to trade range-bound next week, tracking regional rubber futures amid ongoing supply concerns, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).

The association said there are ongoing concerns about tight raw material supplies in major rubber-producing countries, as well as a shortage of nitrile butadiene rubber (NBR) latex.

“The ongoing conflict in West Asia has significantly impacted the global glove industry, particularly in terms of raw material availability, shipping schedules, and rising freight and insurance costs,” the association told Bernama.

Industry expert Denis Low said the nitrile shortage is affecting nitrile latex production and has inadvertently led many glove users to switch to natural rubber latex gloves instead.

“Such switching is driving up bulk latex demand. In addition, weather conditions and the ongoing wintering season of rubber trees are contributing to a tighter rubber supply,” he said.

However, Low said the market has become sluggish due to war-related uncertainties, with most commodities, including rubber, facing weaker demand.

“We are predicting a slow market this week, with prices and demand moving sideways with a slight upward bias, mainly due to lower productivity,” he added.

On a Thursday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased 3.5 sen to 823 sen per kilogramme (kg) while latex in bulk surged 32 sen to 759.5 sen per kg. 

-- BERNAMA