RUBBER MARKET IN TIGHT RANGE WITH UPWARD BIAS NEXT WEEK

By Anas Abu Hassan

KUALA LUMPUR, Sept 16 (Bernama) -- The Malaysian rubber market is expected to trade in a tight range with a slightly upward bias next week over anticipation of a recovery in demand amid tight supply.

Malaysian Rubber Glove Manufacturers Association (Margma) past president Denis Low said the industrial production in China climbed by 4.5 per cent year-on-year in August, which suggested improvements in its manufacturing sector.

"This augurs well for the commodity as more economic activities mean more demand for rubber.

"We are expecting the market to remain steady next week with a tendency to move slightly higher,” he told Bernama.

Meanwhile, another dealer said rubber prices are expected to track regional rubber futures markets, ringgit performance and benchmark crude oil prices amid optimism for gains following the prospect of declining natural rubber (NR) production due to the wet weather conditions.

“Market operators will be monitoring global economic indicators and the outcome of the Federal Reserve monetary policy meeting next week for guidance on interest rate hike path," she said.

Throughout the week, the local rubber market was traded mixed in tandem with regional rubber futures markets, taking the cue from rising crude oil prices and ringgit-US dollar performance.  

On a weekly basis, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) eased one sen to 667 sen per kilogramme (kg) from last week’s 668 sen per kg, while latex-in-bulk added 2.5 sen to 480 sen per kg from 477.5 sen per kg previously.

At 5 pm yesterday, the MRB reference price for physical rubber SMR 20 stood at 667 sen per kg, while latex-in-bulk was 480 sen per kg.

-- BERNAMA