RUBBER MARKET EXPECTED TO TRADE SIDEWAYS ON SLOW DEMAND

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Oct 4 (Bernama) -- The Malaysian rubber market is expected to trade sideways next week due to slowing demand for commodities including rubber, said industry expert Denis Low.

He said demand and prices are likely to soften in the coming week.

“We see the market as soft and expect demand to come down quite significantly. Prices may move lower but not substantially, as weather conditions will act as a counterweight,” he told Bernama.

Citing the Thai Meteorological Department, he said the agency has forecast scattered rain, strong winds and rough seas due to shifting monsoon patterns and a nearby tropical storm, while Malaysia’s Meteorological Department has issued thunderstorm warnings for several states.

He added that crude oil prices and the volatile US dollar may also affect demand and pricing.

“Such acute volatility represents uncertainties and may warrant both caution and fear. Thus, we may see a more measured approach to trading this commodity,” he said.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market may also be impacted by slowing US economic growth following the government shutdown.

“The International Monetary Fund also sees mixed views on inflation amid tariff impacts. The rubber market may ease over supply concerns due to adverse weather conditions in top-producing nations,” it said.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 12 sen to 731.50 sen per kilogramme (kg), while latex-in-bulk also slipped 12 sen to 570.50 sen per kg.

-- BERNAMA