RUBBER MARKET TO SEE MIXED PERFORMANCE AMID ONGOING SUPPLY CONCERNS NEXT WEEK

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Dec 6 (Bernama) -- The Malaysian rubber market is expected to show mixed performance amid ongoing natural rubber (NR) supply concerns due to heavy rains in major producing regions, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).

The association said heavy rains and flooding in rubber-producing countries across Southeast Asia continue to disrupt tapping activities, tightening NR supply.

It said rubber prices would also be influenced by movements in regional rubber futures markets, the ringgit’s performance against the US dollar, and fluctuations in benchmark crude oil prices.

“Asia’s manufacturing sector experienced a downturn in November. Orders did not rebound significantly despite progress in United States trade negotiations, indicating persistent sluggish global demand,” MARGMA told Bernama.

Meanwhile, a trader also reiterated MARGMA’s view that the rubber market would likely be affected by movements in regional rubber futures markets next week.

He noted that the Association of Natural Rubber Producing Countries expects global NR production to rise modestly by 1.3 per cent in 2025 to 14.89 million tonnes, while NR demand is expected to grow by 0.8 per cent in the year to 15.57 million tonnes, much higher than production.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) declined by 10.5 sen to 715.5 sen per kilogramme (kg), while latex-in-bulk decreased 2.5 sen to 575.5 sen per kg.

-- BERNAMA