Rubber Market Likely To Trade Sideways With An Upside Bias Next Week

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Aug 30 (Bernama) -- The Malaysian rubber market is expected to trade sideways with an upside bias next week, driven by extreme weather conditions and flooding in several countries.

Industry expert Denis Low noted that heavy rainfall and strong winds have swept across various regions, damaging crops and disrupting productivity.

“It is clear that certain rubber-producing regions are affected and this will, in turn, cause a temporary decline in rubber production.

“In the interim, there is also uncertainty stemming from the tariffs, which can swing from 25 to 50 per cent at a moment’s notice. Such uncertainty is affecting the economy and trade across all nations,” he told Bernama.

Echoing this view, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market may continue to trend upward next week, driven by ongoing supply disruptions caused by weather conditions as a result of Typhoon Kajiki, which has hit major rubber-producing areas in Southeast Asia.

Additionally, it said new car sales in Europe rose by 5.9 per cent in July, indicating resilient demand in a key consumer market.

However, potential trade tensions could weigh on market sentiment.

“US President Donald Trump has threatened to introduce new tariffs and impose technology export restrictions against countries that target US technology firms, alongside implementing a 50 per cent tariff on Indian goods,” it said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 1.0 sen to 743.50 sen per kilogramme (kg), while latex in bulk declined by 1.5 sen to 569.50 sen per kg.

-- BERNAMA