US TARIFFS CONFLICT TO KEEP RUBBER MARKET RANGE-BOUND NEXT WEEK

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, March 15 (Bernama) -- The Malaysian rubber market is expected to trade within a narrow range next week, with potential volatility due to global economic and weather-related factors, said industry expert Denis Low.

According to Low, the primary driver of market uncertainty is the ongoing US tariff conflict, which could impact China's exports and limit growth in the manufacturing sector.

Additionally, isolated and heavy thunderstorms in Southern Thailand may disrupt rubber production,  further affecting supply.

"Additionally, production is expected to be lower due to the Hari Raya Aidilfitri festive period. Hence, the market is likely to remain subdued as the supply and demand dynamics are expected to balance out," he told Bernama.

Similarly, the Malaysian Rubber Glove Manufacturers Association (MARGMA) noted that the rubber market could trend downward next week, driven by uncertainties surrounding US tariffs and the escalating trade war.

However, the decline may be limited by a tight natural rubber (NR) supply caused by ongoing rainy weather conditions.

The Statistics Department recently reported that Malaysia's NR production fell by 20.8 per cent in January 2025 compared to December 2024.

“Rubber prices are likely to track the performance of the regional rubber futures market, the strength of the ringgit, and movement of the crude oil prices,” MARGMA added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) dropped by 15.0 sen to 899.50 sen per kilogramme (kg), while latex in bulk declined by four sen to 708.00 sen per kg.

-- BERNAMA