Rubber Market Seen Trading Sideways With Slight Upward Bias Next Week

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Feb 14 (Bernama) -- The rubber market is expected to trade sideways with a slight upward bias next week, supported by lower latex output due to the wintering period.

Industry expert Denis Low said rubber trees are entering a much earlier wintering period, which has begun to curb latex production and may lead to some degree of short supply.

He said incessant rainfall during the falling leaf season has further weighed on output, compounding the supply tightness.

“This lower output may push up prices in the interim. However, we are seeing less vigorous buying from China ahead of its long holidays for the upcoming Chinese New Year,” he told Bernama.

Meanwhile, a trader said the rubber market is expected to remain neutral to slightly positive in the coming week, supported by relatively tight global supply and steady demand from the tyre and industrial sectors, which may help limit downside risks.

However, she said, gains could be capped by mixed crude oil prices, currency fluctuations including a firmer ringgit, and continued uncertainty surrounding US monetary policy and broader global economic conditions. 

“Trading activity is also likely to be quieter due to the Chinese New Year holiday,” she added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) dropped 3.5 sen to 757 sen per kilogramme (kg) while latex in bulk remained unchanged at 578.5 sen per kg.

-- BERNAMA