Rubber Market Likely Volatile, Mild Downtrend Next Week - Analyst
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, June 13 (Bernama) -- The Malaysian rubber market is anticipated to remain volatile next week, displaying a slight downward trend due to ongoing global uncertainties, said industry expert Denis Low.
He attributed the outlook to developments in West Asia and adverse weather conditions in key rubber-producing regions. Low said sporadic heavy rainfall across several producing areas is likely to curb latex harvesting activity, weighing on rubber output and productivity.
“The Thai Meteorological Department forecasts additional rain in upper Thailand, with heavy to very heavy showers anticipated in the upper North, upper Northeast, East, and along the western coast of the South.
“There are also reports that the Thailand Rubber Authority plans to sell a substantial stockpile of rubber. While it is being suggested that the sale will not affect prices, a sufficiently large volume could still exert some downward pressure on the market,” he said.
Low expects market sentiment to remain cautious amid the US-Iran conflict, although hopes of a potential peace accord have recently provided some support to investor confidence.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) declined 8.5 sen to 928.50 sen per kilogramme (kg), while latex-in-bulk increased 19.0 sen to 781.00 sen per kg.
-- BERNAMA