Rubber Market To See Some Volatility With Slight Downtrend Next Week

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, April 25 (Bernama) -- The Malaysian rubber market is expected to see some volatility next week with a slight downtrend amid the shortage of crude oil flowing through the Strait of Hormuz, said an industry expert Denis Low.

He said the situation is followed by the uncertainty of a peace deal between the United States and Iran that has resulted in almost everything being in short supply, with prices escalating as well.

“When uncertainty and shortages prevail, prices will be volatile due to the dynamics of shortages and perhaps some profiteering.

“Truth of shortages is understandable but profiteering may not be sustainable,” he told Bernama.

He said the current geopolitical situation is also pushing certain commodity prices beyond expectations while curtailing some as well.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 37.5 sen to 841 sen per kilogramme (kg), while latex-in-bulk decreased 10.5 sen to 757.5 sen per kg.

-- BERNAMA