Rubber Market Expected To Move Sideways With Upward Bias Next Week

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Dec 13 (Bernama) -- The Malaysian rubber market is expected to move sideways with an upward bias in both demand and price next week, driven by the monsoon season and heavy rainfall in major rubber-producing countries, according to industry expert Denis Low.

He said Hat Yai, Thailand, has been flooded for more than a week now, while strong winds and incessant heavy rains are pouring down on rubber estates and processing plants, halting rubber production.

“While the monsoon season and floods are not a surprise, what is surprising is the market situation. Instead of its usual volatility and higher prices, the market remains muted with very insignificant increases in price and demand. 

“This brings us to the fact that the market remains depressed by the ongoing spat involving Japan, China and Taiwan coupled with the uncertainty over the Ukraine-Russia peace deal," he told Bernama.

Low also mentioned that the Thai Meteorological Department has issued heavy rain warning for 35 provinces, with the southern region facing the most downpours, while the Malaysian Meteorological Department has warned of continuous rain for the peninsula’s east coast and western Sarawak.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 8.5 sen to 724 sen per kilogramme (kg), while latex-in-bulk stood at 575.5 sen per kg.

-- BERNAMA