RUBBER MARKET TO REMAIN QUIET WITH TRADERS MAINLY REPLENISHING STOCKS NEXT WEEK

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, April 26 (Bernama) -- The Malaysian rubber market is expected to remain quiet next week, with traders’ buying activities to focus on replenishing stocks, said industry expert Denis Low.

He believed that prices and demand would move sideways, with a bias toward being lower. 

“There is definitely much chaos arising out of the United States’s (US) tariffs. It will likely cause continued uncertainty in the marketplace with many manufacturers and traders preferring to sit and watch the whole saga unfold,” Low told Bernama. 

Additionally, he said volatility is likely caused by weather conditions, with heat and summer storms expected in some areas of Thailand.

“At the same time, the weatherman in Malaysia is predicting thunderstorms, heavy rainfalls and strong winds across most states.

“Another factor that is causing volatility is the exchange rate, where currencies could fluctuate wildly at times,” Low added. 

The Malaysian Rubber Glove Manufacturers Association (Margma), meanwhile, said next week’s rubber market outlook would likely continue on a downtrend due to mixed signals stemming from the ongoing US-China trade war and geopolitical tensions.

Lingering uncertainties surrounding the US trade policies are expected to weigh on the market, it said.

“However, natural rubber supply in major producing countries and potential Chinese stimulus measures might limit further losses.

“Prices would continue to track the performance of regional rubber futures markets, as well as the ringgit's strength against the US dollar and benchmark crude oil prices,” said the association.

For the week just ended, the rubber market traded mostly mixed, mainly tracking regional rubber futures, as well as uncertain US trade policies, crude oil prices, and the ringgit’s performance against the US dollar.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 1.5 sen to 752.50 sen per kilogramme (kg), while latex in bulk fell by 26.0 sen to 625.50 sen per kg.

The Kuala Lumpur rubber market was closed on Friday, April 18, for Good Friday. 

-- BERNAMA