malaysiang
KUALA LUMPUR: The local rubber market is expected to trade within a stable range next week, as re-stocking activities are anticipated to balance prices and demand amidst a subdued market with uncertain sentiments, according to industry expert Denis Low. Despite challenges such as short supply and rainy weather in certain rubber-producing regions, rubber prices from the previous week indicated low stock replenishment activities and a general lack of purchasing interest.
According to BERNAMA News Agency, Low emphasized the need for traders and users to remain vigilant regarding the upcoming Northeast Monsoon from November to January. He noted that the current climate change pattern could exacerbate concerns during this period. Low further highlighted that the stagnation in demand and prices is primarily influenced by uncertainties related to geopolitical risks and fluctuating exchange rates. These factors may lead to volatility in oil and gas prices, affecting commodity prices either by pushing them beyond exp
ectations or limiting their growth.
The Malaysian Rubber Gloves Manufacturers Association (Margma) has observed that rubber prices are likely to continue following regional rubber futures and market trends, suggesting a mixed outlook for the rubber market. Margma cited that while a weaker ringgit and potential economic stimulus from China might bolster prices, several factors could exert downward pressure. These include a weaker regional futures market, mixed global economic performance, declining oil prices, and trade tensions between China and the European Union. Additionally, the association warned that anticipated heavy rainfall and flooding in the coming months could further strain the market.
On a weekly basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 2.5 sen to 860.0 sen per kilogramme, whereas latex-in-bulk experienced an increase of 18.5 sen to 731.5 sen per kilogramme. By 5 pm Friday, SMR 20 was recorded at 862.5 sen per kilogramme, and la
tex in bulk was at 726.5 sen per kilogramme.
