RUBBER MARKET TO FACE UPWARD PRESSURE NEXT WEEK

By K. Naveen Prabu

KUALA LUMPUR, Sept 27 (Bernama) -- The rubber market is expected to face upward pressure next week as supply constraints and firm demand continue to shape market sentiment, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA).

MARGMA said the market may see tighter supply due to warnings of heavy rain and flash floods in major rubber-producing countries, particularly Thailand.

“This, together with positive demand signals from China’s new electric vehicle market and geopolitical factors that have driven up oil prices, will continue to put upward pressure on rubber prices next week,” the association told Bernama. 

It added that reports of Russia’s threats near the Polish border serve as a reminder of ongoing risks that could affect overall market stability.

However, MARGMA noted that prices would also be influenced by regional rubber futures, the performance of the ringgit against the US dollar, and fluctuations in benchmark crude oil prices.

Industry expert Denis Low shared a similar view, saying the overall market is expected to remain steady with a slight upward bias in the coming week.

“There seems to be a sense of economic optimism emanating from the United Nations Assembly, with leaders across the world united for peace and for the economy to move ahead.

“This is encouraging for most commodities, including rubber, with the market expected to stay steady with a slight upward trend,” he said. 

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 16.5 sen to 743.00  sen per kilogramme (kg), while latex-in-bulk went up by 4.0 sen to 582 sen per kg.

-- BERNAMA