Rubber Market Likely To Trade Range-bound Next Week
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Aug 2 (Bernama) -- The rubber market is expected to trade in a narrow range but with a downward bias next week, according to industry expert Denis Low.
He said both certainty and uncertainty surrounding the United States (US) tariffs are affecting commodity prices globally.
“Demand for rubber is being affected, as shown in last week's price decline.
“Traders and businesses are adopting a 'wait and see' approach, monitoring whether the tariffs have truly stabilised amid the unpredictability of the United States (US) administration under President Donald Trump,” he told Bernama.
Earlier, it was reported that Malaysia will advocate for zero tariffs on commodities such as cocoa, rubber and palm oil exported to the US, which are currently subject to duties of 19 per cent.
Low also said that the Thai Meteorological Department has forecast a weakening of the monsoon, although heavy rainfall is expected to persist in several regions. As a result, rubber production may be disrupted, potentially leading to supply shortages.
Meanwhile, the Malaysian Rubber Glove Manufacturers Association cited projections by the Association of Natural Rubber Producing Countries (ANRPC), which forecast global natural rubber production to increase by 0.5 per cent and demand to grow by 1.3 per cent in 2025.
This, combined with better-than-expected US gross domestic product in the second quarter and the final tariff rate for Malaysia being set at 19 per cent, could signal a potential rebound in the rubber market next week.
“However, with China’s manufacturing sector showing signs of contraction and factory activity across Asia declining, weak regional demand may weigh on the market,” the association said.
On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) inched down by 12.5 sen to 715.0 sen per kilogramme (kg), while latex in bulk declined by three sen to 567 sen per kg.
-- BERNAMA