RUBBER MARKET SET FOR MODEST GAIN NEXT WEEK

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Jan 25 (Bernama) -- Rubber market prices and demand are expected to remain volatile, with a slight upward trend forecast for next week, driven by unpredictable weather in southern Thailand, according to industry expert Denis Low.

Low pointed out that the Thai Meteorological Department (TMD) has predicted a new cold wave, accompanied by strong winds, while the northeast monsoon continues to bring heavy rain to the southern region.

"The incessant rainfall in the rubber-producing regions is further hampering production and pushing prices higher. Hence, there could be supply shortages in the coming weeks," he told Bernama.

He also highlighted that the recent inauguration of US President Donald Trump has led to a sharp rise in oil prices, which could have a ripple effect on other commodities, depending on his policies.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (Margma) said the rubber market is likely to experience slower trading activity next week due to the Chinese New Year holidays.

The association stated that the market maintained its upward trend this week despite mixed signals from regional rubber futures markets.

"This upward movement is primarily supported by ongoing concerns over tight supply. Wet weather conditions in Thailand, along with heavy rains and potential flooding in key rubber-producing countries, could further disrupt production and tighten supply next week," it added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 6.5 sen to 891 sen per kilogramme, while latex in bulk increased by 10.5 sen to 681 sen per kilogramme. 

-- BERNAMA