Rubber market to trade higher on strong demand
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The Malaysian rubber market is anticipated to rise this week, fueled by robust demand and worries about possible supply shortages. Margma, the Malaysian Rubber Glove Manufacturers Association, predicts demand will intensify, particularly in China, which has committed to additional fiscal policies to spur economic expansion. Demand for top-notch, sustainably sourced natural rubber is also anticipated to grow as Malaysian glove manufacturers prioritize traceability and sustainability in line with the European Union Deforestation Regulation.
El Nino concerns might also hamper rubber production and limit supply across rubber-producing nations. Industry specialist Denis Low predicts the Malaysian rubber market will marginally increase next week, driven by possible restocking demand from China and stronger crude oil prices. Reports of substantial dry rubber restocking in China could offer upward momentum if purchasing volumes are significant, while higher oil prices may also bolster natural rubber prices.
Supply and demand are currently approximately equal, although foreign exchange volatility and adverse weather in major producing areas could sway prices.
The Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 climbed 38 sen to 947.0 sen per kilogramme on a Friday-to-Friday basis, while bulk latex fell 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.
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