Rubber Market Seen Trading Mixed Next Week Amid Continued Caution

By K. Naveen Prabu

KUALA LUMPUR, July 19 (Bernama) --  The Malaysian rubber market is expected to trade mixed next week amid continued caution over US tariffs, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).

Improved indicators from the United States (US) and China, alongside continued growth in the electric vehicle (EV) sector, could offer price support, it said.

However, it cautioned that the full impact of US trade tariffs remains unclear, adding to overall market uncertainty. “The overall market direction will largely depend on further developments surrounding US trade policy and the actual economic consequences of the tariffs,” MARGMA said.

Industry expert Denis Low agrees that the market is likely to remain cautious and range-bound, but with a slight upward bias on demand-side optimism and supply-side constraints. “The volatility of the exchange rate will also play a significant role, as it is increasingly driven by geopolitics rather than real economic fundamentals,” he added.

Low said he expects a potential technical rebound in prices due to tighter supply arising from adverse weather conditions and regulatory pressure. “There ought to be a technical rebound on rubber demand and prices, as supply is bound to be tight due mainly to the climate change phenomenon and the approaching EU Deforestation Regulation (EUDR) deadline,” he added.

Low noted that compliance with the EUDR remains a challenge for many producers, with concerns over governance and readiness potentially affecting exports to Europe when enforcement begins in January 2025.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 10 sen to 736.00 sen per kilogramme (kg), while latex in bulk went up by five sen to 571.50sen per kg.

-- BERNAMA