Rubber Market Expected To Trade Quietly Next Week Amid Weather Uncertainty

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, July 18 (Bernama) -- The Kuala Lumpur rubber market is expected to trade quietly next week, with demand likely to be supported mainly by replenishment buying amid weather-related supply uncertainties.

Industry expert Denis Low said heavy rainfall in several rubber-producing regions was unusual for this time of year, when conditions are typically hot and dry, underscoring the increasing unpredictability of weather patterns linked to climate change.

"Apart from the sporadic rainfall, all other factors point to favourable conditions for rubber production, with a steady market emerging. Then the bombs came down again.

"As such, we expect the rubber market to remain quiet next week, with demand largely driven by replenishment buying. Prices and demand will remain sluggish, with a slight downside bias," he told Bernama.

Low added that market participants would continue to monitor uncertainties surrounding the global economy, international trade, geopolitical developments, crude oil prices and the US dollar, all of which could influence commodity prices.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) expects the rubber market to remain range-bound next week, supported by improving natural rubber production during the peak tapping season in major producing countries.

However, it said the market could face fresh supply chain disruptions involving key petrochemical-based raw materials used by the industry.

It added that renewed US strikes on Iran continued to pose risks to West Asia's oil supplies, which could weigh on market sentiment.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) rose 4.5 sen to 887 sen per kilogramme, while latex in bulk fell 7.5 sen to 722 sen per kilogramme.

-- BERNAMA