Rubber Market To Trade Sideways With Lower Bias Next Week

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, July 4 (Bernama) -- The Kuala Lumpur rubber market is expected to trade sideways with a slight downward bias next week, weighed by geopolitical uncertainty surrounding the stalled United States (US)-Iran peace deal.

The Malaysian Rubber Glove Manufacturers Association (MARGMA) said dealers will closely monitor these developments, as a prolonged stalemate could delay the much-anticipated easing of disruptions to the global supply chain.

Speaking to Bernama, it said the market sentiment will be further influenced by weaker regional rubber futures and softer crude oil prices

Meanwhile, industry expert Denis Low said the market is expected to see subdued trading next week, with quiet but steady replenishment buying keeping prices neutral to slightly lower.

He said shipping and commercial activities have resumed cautiously, with the movement of goods appearing to return to normal despite lingering geopolitical uncertainties.

He said oil supply is expected to normalise in the coming days, and lower crude oil prices should help reduce overall costs across the supply chain.

“The rubber scene is seeing some good and manageable weather in the rubber-producing regions.

“This has invoked a better supply situation, which has pushed prices to be manageable and steady as compared to a few weeks back when there was a runaway increase in prices,” he said.

Low also said the demand will remain steady, with buyers no longer needing to make speculative purchases alongside processors and traders.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell 8.0 sen to 872.50 sen per kilogramme (kg), while latex-in-bulk declined 23.5 sen to 746 sen per kg. 

-- BERNAMA