RUBBER MARKET TO TRADE ON POSITIVE MODE NEXT WEEK ON EUDR DELAY

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Nov 16 (Bernama) -- The Malaysian Rubber Glove Manufacturers Association (MARGMA) expects the rubber market to trade positively next week, following the delay in the implementation of the European Union Deforestation Regulation (EUDR).

It noted that the postponement of the EUDR is expected to provide some relief to the market, as it removes a significant source of demand uncertainty.

"In addition, adverse weather conditions in key rubber-producing regions, such as Thailand, could further disrupt supply and support prices in the coming week," MARGMA told Bernama.

Echoing the association’s comments, industry expert Denis Low said re-stocking activities will help maintain a balance between prices and demand

He said that demand will likely be sporadic, driven more by replenishment trends than by increased usage volumes, due to the rainy weather in rubber-producing countries and ongoing economic uncertainties.

"China and the European Union are set to continue their technical talks this week, seeking an alternative to additional tariffs on electric vehicles following recent discussions in Beijing. This could lead to a more measured and cooperative approach to rubber trading," Low explained.

"As rubber is a critical commodity for the automotive sector, it may face volatility if tariffs are imposed in an inequitable manner,” he told Bernama.

Currently, with the global economic slowdown, rubber consumption also appears to be declining, thus affecting local prices.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 5.1 per cent to 848.50 sen per kilogram (kg), while latex-in-bulk inched up 0.5 sen to 677.50 sen per kg.

At 5 p.m., SMR 20 stood at 857.50 sen per kg, while latex-in-bulk was at 680.50 sen per kg.

-- BERNAMA