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

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Aug 23 (Bernama) -- The Malaysian rubber market is expected to trade range-bound with a downward bias, driven by ongoing market volatility and various global uncertainties.

Industry expert Denis Low noted that uncertainty is inevitable as the European Union Deforestation Regulation (EUDR) comes into effect in January 2026, however, much ambiguity still surrounds the implementation of this new rule.

“Most rubber farmers in major producing regions are generational farmers working on ancestral land, making it very difficult for them to meet EUDR compliance requirements,” he said.

“Moreover, certification under the EUDR can be costly and ambiguous. It must be noted that large-scale rubber plantations are no longer common,” he told Bernama. 

As a result, Low expects the run-up to the EUDR deadline to generate some volatility and uncertainty, both locally and in the EU market.

He added that latex processors may pass the cost of certification onto buyers, but the weak market sentiment in the EU may not support higher prices. 

“For this week, we expect the rubber market to trade within a narrow range, with a downward tendency,” he added.

Meanwhile, Low said the Thai Meteorological Department has forecast that the Southwest monsoon prevailing over the Andaman Sea, Thailand and the Gulf will strengthen, bringing rainfall and isolated heavy showers. Malaysia is also expected to experience isolated thunderstorms or rain in various regions.

On a more optimistic note, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market may find support from China’s economic growth and potential supply disruptions due to weather conditions, especially in Thailand.

The association noted that rising crude oil prices -- amid stalled ceasefire talks between Russia and Ukraine -- could further impact the market.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) slid by 10 sen to 726.5 sen per kilogramme, while latex in bulk fell by 4.5 sen to 567.5 sen per kg.

-- BERNAMA