RUBBER MARKET LIKELY TO TRADE LOWER NEXT WEEK ON CAUTIOUS SENTIMENT

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, March 22 (Bernama) -- The Malaysian rubber market is expected to trade sideways, with a slight tendency to decline next week, as various industries remain cautious about Donald Trump’s tariff policies, said industry expert Denis Low.

He emphasised that, given the prevailing uncertain mood, commodities are likely to suffer significantly.

“With this big uncertainty hanging over them, it is anticipated that traders and the industry will take a limited stance in stocking up any market price-sensitive commodity, including rubber,” Low told Bernama.

He also said that the wintering of rubber trees is ongoing, and any decrease in demand is balanced by a reduction in production, thus equalising each other.

Conversely, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market may see some positive trend next week supported by the Chinese stimulus measures and anticipated gains in oil prices.

However, the association said the ongoing war in the Middle East may weigh down trade concerns and the global market outlook. 

“Prices are likely to be affected by the upcoming United States tariff decisions expected on April 2, as markets grow increasingly uncertain about inflation and economic growth.

“Prices will continue to track the performance of regional rubber futures markets, the strength of the ringgit against the US dollar, and benchmark crude oil prices amid concerns over natural rubber supply at the onset of wintering season and rainy weather," MARGMA said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 8.5 sen to 880 sen per kilogramme (kg), while latex in bulk declined by 4.5 sen to 688.5 sen per kg.

-- BERNAMA