Rubber Market Expected To Edge Higher Next Week On Supply Concerns

By K. Naveen Prabu

KUALA LUMPUR, Dec 20 (Bernama) -- The rubber market is expected to edge higher next week amid supply concerns stemming from persistent heavy rainfall in rubber-producing districts in Thailand and Malaysia, said industry expert Denis Low.   

He said the incessant rainfall, coupled with weather alerts in Thailand and flood and landslide warnings in Malaysia, is likely to reduce rubber output and disrupt logistics.

“In view of these conditions, rubber prices are expected to inch upwards, supported by stronger demand for both bulk and dry rubber,” he said. 

He added that fluctuations in exchange rates and crude oil prices are also contributing to market volatility.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by one sen to 723 sen per kilogramme (kg), while latex-in-bulk declined by 0.5 sen to 575 sen per kg.

-- BERNAMA