Rubber market expected to trade higher next week
KUALA LUMPUR: The Malaysian rubber market is expected to trade higher next week, supported by stronger demand and concerns over potential supply constraints.
The Malaysian rubber market is anticipated to rise next week, fueled by heightened demand and apprehensions of possible supply shortages. The Malaysian Rubber Glove Manufacturers Association (MARGMA) anticipates a surge in demand, especially in China, which has committed to additional fiscal policies to boost economic expansion.
Additionally, there's a growing demand for high-quality, sustainably sourced natural rubber as Malaysian glove manufacturers prioritize traceability and sustainability in compliance with the European Union Deforestation Regulation (EUDR) requirements. Industry expert Denis Low predicts a slight increase in the Malaysian rubber market next week, driven by possible restocking demand from China and stronger crude oil prices, although geopolitical uncertainties and currency fluctuations may continue to affect market sentiment.
If China reports significant dry rubber replenishment, it could provide upward pressure on prices, while higher oil prices might also bolster natural rubber prices. However, supply and demand are currently relatively balanced, and foreign exchange volatility, as well as adverse weather in key producing regions, could impact prices.
The Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 38 sen to 947.0 sen per kilogramme on a Friday-to-Friday basis, while the price of latex in bulk dropped by nine sen to 679.5 sen per kilogramme.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
