Rubber Market Expected To Trade Range-bound Next Week

By K. Naveen Prabu

KUALA LUMPUR, Nov 8 (Bernama) -- The rubber market is expected to trade within a narrow range next week as mixed global cues continue to shape sentiment, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA).

It said that while the market is buoyed by stronger ASEAN economic performance, supported by upbeat United States data and optimism over further Chinese stimulus, the ongoing US tariff policy continues to cloud the demand outlook.

“Ringgit strengthening against the US dollar and higher crude oil prices have also affected rubber prices, and next week’s movements will likely be guided by regional rubber futures and weather conditions,” the association told Bernama. 

Meanwhile, industry expert Denis Low said global uncertainty, particularly in Europe, continues to weigh on commodity markets.

“The US-imposed tariffs and sanctions have dampened sentiment and made businesses cautious, while the high-handed handling of investments and commerce by European nations, together with the ongoing Ukraine war, will further slow Europe and, consequently, the world. 

“With such uncertainty, commodity demand and prices will naturally be affected to some extent, and we are likely to see softer demand with prices staying flattish to slightly lower this week,” he said.

At 3 pm, the Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) declined by 11 sen to 720.00 sen per kilogramme (kg), while latex-in-bulk rose by 4.5 sen to 570 sen per kg.

-- BERNAMA