Rubber Market To See Muted Demand Next Week Due To Global Uncertainties

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, June 7 (Bernama) -- The local rubber market is expected to experience muted demand next week due to global economic uncertainties following the ‘hanging’ United States (US) tariffs, which are still on a 90-day pause. 

Industry expert Denis Low said the on-and-off-again nature of US tariffs has upended global trade and roiled financial markets, leaving caution among market traders. 

“The prevailing sentiment will affect the demand for most commodities, including rubber. 

“Any transaction will mostly be based on a locked-in contract and as replenishment only,” he told Bernama.

Therefore, Low expects the rubber market to remain relatively quiet, moving sideways with a bias towards lower prices.

“Exchange rates are volatile, and with such huge swings on a daily basis, businesses are left in much limbo as to whether to hedge or to lose in a wild swing. Remember that there is also a cost when hedging,” he added. 

Meanwhile, Low noted that the Malaysian Meteorological Department (MetMalaysia) has issued a warning for thunderstorms, heavy rain, and strong winds in parts of Peninsular Malaysia and Sabah.

He said that additionally, the Thai Meteorological Department (TMD) has also forecasted thundershowers across Thailand, and with isolated heavy rains likely in the country’s Northeast, Eastern, and Southern (west coast) regions.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market is expected to trade in a mixed trend next week as US-China trade talks and negotiations are ongoing.

“The demand may be impacted by China’s manufacturing sector, which unexpectedly shrank in May, while Asia Pacific gross domestic product growth is now expected to be lower at an average of four per cent in 2025.

“However, rubber prices will be influenced by the disrupted natural rubber (NR) supply in major producing countries due to the wet weather season, as well as the regional rubber futures markets,” the association said. 

For the week just ended, the Kuala Lumpur rubber market traded mixed. 

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 7.5 sen to 691.0 sen per kilogramme (kg), while latex in bulk decreased by 19 sen to 601.5 sen per kg.

-- BERNAMA