RUBBER MARKET SEEN RANGE-BOUND WITH UPWARD BIAS NEXT WEEK AMID WEST ASIA UNCERTAINTY

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, March 21 (Bernama) -- The rubber market is expected to trade sideways with a slight upward bias amid as the market keeps a close watch on uncertainties surrounding the ongoing West Asia conflict, said industry expert Denis Low.

He said the conflict is beginning to weigh heavily on global industry, commerce and overall economic stability.

“The war involving Iran, the United States and Israel is causing disruptions to the commerce sector,” he said.

Low noted that oil and gas supply routes, particularly through the Strait of Hormuz, are facing significant disruptions, which in turn affect the delivery of oil-related sub-products essential for various manufacturing sectors.

However, he explained that the immediate impact on rubber demand is being partially offset by slower global consumption.

“For the moment, the resulting shortage is equalised by weaker demand because of the war. This creates a temporary balance, but uncertainty remains high,” he said.

Low also pointed out that the extended Aidilfitri holiday break is likely to dampen trading activity in the short term.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) declined 26.5 sen to 758.5 sen per kilogramme (kg) while latex in bulk surged 12 sen to 677 sen per kg.

-- BERNAMA