RUBBER MARKET TO TRADE CAUTIOUSLY NEXT WEEK AMID WEST ASIA CONFLICT UNCERTAINTIES

By Danni Haizal Danial Donald

KUALA LUMPUR, March 14 (Bernama) -- The Malaysian rubber market is expected to trade cautiously next week, as the market monitors uncertainties around the ongoing West Asia conflict and the closure of the Strait of Hormuz, said industry expert Denis Low.

He said next week’s buying activities will be based on replenishment and rubber demand, and prices will hover range-bound with a positive bias.

“The week ahead is difficult with uncertainties everywhere. Prediction can be rendered irrelevant if the Strait of Hormuz is truly closed.

“On the rubber supply side, rubber output has slowed down as a result of rubber trees wintering. This may continue until the end of March or early April. In any case, the resulting shortage is going to be equalised by slower demand because of the ongoing geopolitical conflict,” he told Bernama.

Echoing Denis, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said next week’s rubber market may trade within a narrow range, sensitive to any news of de-escalation in West Asia.

The association noted that the ongoing conflict is raising concerns over oil supply disruption and persistent inflation in raw materials.

“Costs on transportation, logistics and insurance are expected to increase further as port congestion is also causing shipping delays.

“Demand for natural rubber may increase to substitute for synthetic rubber. However, buying interest for rubber is also subdued because China’s automotive sales have dropped since February 2026,” it said.

MARGMA also expects rubber prices to be influenced by regional rubber futures, currency fluctuations, and crude oil volatility.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose 2.5 sen to 785 sen per kilogramme (kg) while latex in bulk surged 17 sen to 665 sen per kg.

-- BERNAMA