Rubber Market Likely To Trade Upward Next Week

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Feb 21 (Bernama) -- The Malaysian rubber market is expected to trend upward next week, as heavy rainfall continues to persist across key producing regions, adversely affecting rubber productivity, an industry expert Denis Low said.

Low said the prolonged Chinese New Year holidays have also impacted rubber production and trading activities.

He said that the ongoing United States-Iran conflict continues to weigh on market sentiment, as it may cause rubber demand to rise or decline sharply.

“The Thai Meteorological Department has warned of summer storms bringing heavy rains, gusty winds, lightning and possible hail, while the Malaysian Meteorological Department has issued advisories for thunderstorms, heavy rain, and strong winds in several areas,” he told Bernama.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the market is likely to pick up next week but may remain mixed, tracking regional rubber futures and the ringgit’s strength.

It said the market will continue to be impacted by US economic growth and rising concerns about the US-Iran conflict.

“The Association of Natural Rubber Producing Countries (ANRPC) anticipates a positive outlook on global demand for rubber as the approaching wintering season will result in low production,” it added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) added 5.5 sen to 762.5 sen per kilogramme (kg) while latex in bulk increased seven sen to 585.5 sen per kg.

-- BERNAMA