Rubber Market Likely To Remain Steady With Slight Downward Bias Next Week

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Sept 19 (Bernama) -- The Kuala Lumpur rubber market is expected to remain steady in prices and demand, with a slight downward bias next week amid higher costs, geopolitical uncertainties and a manageable supply-demand balance, said industry expert Denis Low.

He said the market was likely to remain relatively resilient despite the prevailing uncertainties, with demand mainly supported by replenishment activity.

“We believe there could be some volatility due to higher costs and uncertainty, but it is manageable with demand mainly on replenishment rather than speculative,” he told Bernama.

Low said the rubber sector remained resilient, cushioned by supply and demand dynamics that were currently in equilibrium.

“The weather is stable, and production is more than adequate to stabilise slightly higher demand, despite a minor hiccup in supply from an African producer,” he said.

On weather conditions, Low said the Thai Meteorological Department had forecast heavy rain in some provinces, while thunderstorms were expected in several parts of Malaysia.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market could trend upwards next week, driven by supply-side constraints caused by volatile weather across Southeast Asia.

“Oil prices continue to tick upwards, which may pressure logistics and raw materials. The postponement of new United States tariffs on Chinese goods will also ease trade concerns,” it said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for SMR 20 declined 21 sen to 977.5 sen per kilogramme, while latex in bulk gained 4.5 sen to 717 sen per kilogramme.

The rubber market was closed on Wednesday, Sept 16, in conjunction with Malaysia Day.

-- BERNAMA