Rubber Market Expected To Trade Higher Next Week
By Abdul Hamid A Rahman
KUALA LUMPUR, Aug 22 (Bernama) -- The Malaysian rubber market is expected to trade higher next week, supported by stronger demand and concerns over potential supply constraints.
The Malaysian Rubber Glove Manufacturers Association (MARGMA) said demand is expected to strengthen, particularly in China, which has pledged additional fiscal policy measures aimed at supporting economic growth.
“Meanwhile, demand for premium and sustainably sourced natural rubber is also expected to strengthen as Malaysian glove manufacturers place greater emphasis on traceability and sustainability under the European Union Deforestation Regulation (EUDR) requirements,” it told Bernama.
In addition, MARGMA said ongoing El Niño concerns could potentially disrupt rubber production and constrain supply across major rubber-producing countries.
Meanwhile, industry expert Denis Low said the Malaysian rubber market is expected to trend slightly higher next week, supported by potential restocking demand from China and firmer crude oil prices, although geopolitical uncertainties and currency volatility may continue to influence market sentiment.
“Reports of sizeable dry rubber replenishment in China could provide some upward momentum if buying volumes are substantial, while higher oil prices may also lend support to natural rubber prices.
“Supply and demand remain relatively balanced, although foreign exchange volatility and adverse weather in major producing regions could influence prices,” he told Bernama.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) added 38 sen to 947.0 sen per kilogramme, while latex in bulk decreased nine sen to 679.5 sen per kilogramme.
-- BERNAMA