Quiet Rubber Market Seen With Sideways To Lower Bias Next Week

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, April 18 (Bernama) -- The rubber market is expected to be quiet with a tendency to move sideways and lower next week, said industry expert Denis Low.

Low said ongoing geopolitical tensions remain a key overhang on sentiment as uncertainty surrounding the ceasefire could prolong the conflict and weigh on global demand.

He noted that while supply conditions are mixed, wintering in some rubber-producing regions has been more severe and is expected to persist until mid- to end-May, although certain areas have begun to see improved latex yields.

"Generally, judging by the price movement of both wet and dry rubber, it can be seen that demand for dry rubber is taking its own pace and not much volatility is expected," he added.

Low said demand for wet rubber latex has strengthened, driven by glove manufacturers switching from synthetic to natural rubber due to tighter supply of feedstock such as naphtha and butadiene.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market may trade upward next week, supported by stronger demand for natural rubber latex.

"The current shortage of nitrile butadiene rubber (NBR) is driving demand for natural rubber latex as a viable alternative," it said.

However, MARGMA noted that rubber prices will continue to track regional futures markets and the ringgit’s performance, while geopolitical tensions in West Asia remain a key risk.

“The conflict has already significantly impacted the glove industry supply chain, with raw material availability, rising fuel charges as well as higher shipping freight and insurance costs," it added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 fell 19.5 sen to 803.5 sen per kilogramme (kg) while latex in bulk increased 8.5 sen to 768 sen per kg. 

-- BERNAMA