Rubber Market Seen Lower Next Week On Improving Supply, Lower Oil Prices

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, June 27 (Bernama) -- The Kuala Lumpur rubber market is expected to trade lower next week, weighed down by lower crude oil prices and improving supply conditions, according to industry expert Denis Low.

Low said rubber production had returned to normal and output was expected to improve, resulting in a more comfortable supply situation.

He said the decline in crude oil prices could help ease cost pressures in the short term despite the Strait of Hormuz remaining closed.

"A better harvest, combined with lower oil prices, will surely bring down rubber prices. Demand remains stable, but rubber stocks are now plentiful," he told Bernama.

At the time of writing, Brent crude futures, the global oil benchmark, had fallen 3.6 per cent to US$72.55 per barrel.

On the weather front, Low said Thailand's Meteorological Department had forecast thundershowers and isolated heavy rain across the country.

"In Malaysia, the Meteorological Department has advised the public to remain alert to changing weather conditions and prepare for the possibility of a Super El Nino at the end of this year," he said.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the latest data from the Association of Natural Rubber Producing Countries (ANRPC) projected global natural rubber production to rise 2.4 per cent in 2026, reinforcing expectations of a comfortable supply outlook.

However, it said prices could remain supported by demand from the automotive sector, which continued to show positive momentum.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) fell 65.5 sen to 880.5 sen per kilogramme, while latex-in-bulk declined 25 sen to 769.5 sen per kg.

-- BERNAMA