Rubber Market To Remain Mixed, Volatile Next Week

By K. Naveen Prabu

KUALA LUMPUR, July 5 (Bernama) -- The Malaysian rubber market is expected to trade mixed with some volatility next week amid uncertainty over global demand due to the United States (US) tariff uncertainties, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA). 

MARGMA said that while the manufacturing activity in China has shown some improvement, manufacturing in other Asian countries remains sluggish, largely due to US trade tensions.

“US President Donald Trump stated this week that he would not consider extending the deadline for countries to conclude trade deals with the United States, adding to the uncertainty,” the association told Bernama. 

MARGMA also noted that natural rubber (NR) supply is being affected by heavy rains in Southeast Asia, which could further tighten availability.

“Rubber prices will closely follow trends in regional rubber futures markets while also being impacted by the strength of the ringgit against the US dollar and benchmark crude oil prices.

“Developments in US-China trade tariffs and ongoing geopolitical tensions in the Middle East will continue to be significant factors influencing rubber price movements,” MARGMA said.

Meanwhile, industry expert Denis Low said the market is expected to remain range-bound and largely flat, with a tendency toward volatility and a slight downward bias.

“Many countries seeking to resolve tariff issues are either rebuffed outright or offered deals that are often impossible to comply with.

“In such a situation, traders are extra cautious in stocking activities as commodities may take an immediate hit across the board, causing the rubber market to move sideways and remain sluggish,” he said. 

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 9 sen to 711 sen per kilogramme (kg) while latex in bulk declined by 14 sen to 571.5 sen per kg.

-- BERNAMA