RUBBER MARKET TO TRADE LOWER NEXT WEEK AMID US TARIFFS, WEAKER GLOBAL OUTLOOK

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, April 5 (Bernama) -- The Malaysian rubber market is expected to trade on a downward bias as the aftermath of the US tariff announcements has dampened the global demand outlook, coupled with the ongoing trade war that has also contributed to a slowdown in the global economy, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).

The association noted that the tariff announcement has affected industries worldwide, resulting in losses in regional futures markets, fluctuations in oil prices, and a decline in market sentiment.

However, it viewed that rubber prices may find some support due to adverse weather conditions, which have negatively impacted natural rubber production and limited supply.

“This, in addition to expectations that the Chinese government will introduce further stimulus measures to mitigate the effects of the US tariffs, could help stabilise prices,” the association said.

It added that the performance of regional rubber futures markets, along with the strengthening of the ringgit, oil prices, and any further developments regarding the tariffs, will also influence prices,” it told Bernama.

Meanwhile, industry expert Denis Low stated that the local rubber market is expected to be volatile next week, primarily due to the US tariff situation. He noted that it will take some time to fully assess the impact on individual industries and countries.

"In such an environment, there will likely be caution in stocking activities, as commodities may experience an immediate downturn, leading the rubber market to trend sideways or lower next week," he said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 38 sen to 836.5 sen per kilogramme (kg), while latex in bulk declined by 3.0 sen to 668 sen per kg.

-- BERNAMA