Rubber Market Expected To Trade Slightly Upward Next Week

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Jan 11 (Bernama) -- The rubber market is expected to trade slightly upward next week tracking the performance of regional rubber futures markets, according to the Malaysian Rubber Glove Manufacturers Association (Margma).

Margma noted that the strengthening ringgit versus the US dollar and the ongoing monsoon season in major rubber-producing countries, which may disrupt rubber supplies, are expected to support prices.

“Market sentiment surrounding the United States (US)-China trade tensions, China stimulus measures, and development in global geopolitical tensions and economic indicators— especially those affecting US monetary policy will also influence demand for rubber,” the association told Bernama.

Meanwhile, industry expert Denis Low opined that the market is likely to trade range-bound with a slight downside bias next week, continuing last week's trend, which saw sporadic and insignificant buying activity.

"Dry rubber will remain steady, likely moving in a straight line, as the big Chinese market slows ahead of the Chinese New Year holidays. As a result, demand for this commodity will stay at its current level, and the supply and demand dynamics will balance out," he added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by nine sen to 876 sen per kilogramme (kg), while latex in bulk decreased by 12.5 sen to 676.5 sen per kg.

-- BERNAMA