RUBBER MARKET LIKELY TO TRADE RANGE-BOUND NEXT WEEK

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Sept 7 (Bernama) — The local rubber market is expected to trade range-bound next week, with a tendency for higher demand and a pick up in prices, said industry expert Denis Low.

He noted that the current weather phenomenon is creating uncertainty, leading to a need for increased rubber stockpiling alongside usual replenishment activities.

“Climate change is truly affecting rubber production in most rubber producing regions in Thailand and Malaysia,” he told Bernama.

Low also pointed out that certain larger nations are increasing their rubber stockpiles in anticipation of potential conflicts in the Middle East and Ukraine. He expected commodity hoarding to continue for several weeks before conditions improve, suggesting that the geopolitical situation is likely to worsen before it gets better.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) expected the rubber market to trade positively next week, driven by movements in the regional rubber futures market and crude oil prices.

The association noted that prices were also boosted by supply disruptions caused by adverse weather conditions in rubber-producing countries.

“Positive sentiment was lifted by optimism for the United States (US) interest rate cuts, but gains were capped by the strengthening ringgit against the US dollar,” it told Bernama.

MARGMA also highlighted that meteorological warnings of heavy rains and possible flash floods in Thailand, along with regional rubber futures market movements, will continue to impact rubber prices in the coming week.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 12.0 sen to 788.0 sen per kilogramme (kg) from 776.0 sen per kg a week earlier.

Meanwhile, latex-in-bulk rose by 12.5 sen to 663.0 sen per kg from 650.5 sen per kg previously.

At 5 pm, the MRB reference price for physical SMR 20 stood at 798.0 sen per kg, while latex-in-bulk was priced at 664.5 sen per kg.

-- BERNAMA