Rubber Market Likely To Trade In Cautious Mode With Upward Bias Next Week

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, July 26 (Bernama) -- The Malaysian rubber market is anticipated to trade cautiously next week, with an upward trend, amid various uncertainties and market volatility.

Industry expert Denis Low said rubber supply is becoming increasingly crucial as the European Union Deforestation Regulation (EUDR) compliance deadline is December 2025.

“Hence, many traders and manufacturers are rushing to produce and ship the goods before the rules take effect. It will increase the demand significantly and may result in a supply shortage and higher prices due to the sudden spike. 

“Meanwhile, the possible new tariffs are pushing the trading activity as many sectors, especially in commodities, are rushing to replenish stock now to avoid higher costs later,” he told Bernama.

Low highlighted that the current hot spell in Malaysia is expected to persist until the end of this month, while the Thai Meteorological Department has forecast heavy rainfall and strong winds across the country.

“Another major volatility happening in the marketplace is the fluctuation of the exchange rate.

“We are seeing big swings in the US dollar versus other currencies across the world, and this is not conducive to the marketplace,” he said.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) stated that while the rubber market is anticipated to continue its upward trend next week, there are still challenges posed by broader global economic uncertainties, ongoing trade tensions, and downgrades in regional growth forecasts.

“We will also be watching the outcome of our trade negotiation and next week’s United States Federal Reserve (Fed) meeting to weigh the impact of potential policy shifts alongside ongoing trade uncertainties. 

“Prices are expected to continue tracking the performance of global rubber futures and the strength of the ringgit against the US dollar, and benchmark against crude oil prices,” MARGMA said in a statement on Friday.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 18 sen to 754 sen per kilogramme (kg) from 736 sen last week, while latex in bulk went up by 7.5 sen to 579 sen per kg, from 571.50 sen previously.

-- BERNAMA