Rubber Market Seen Range-bound Next Week On Geopolitical Uncertainty, Tariff Talks

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Aug 8 (Bernama) -- The Malaysian rubber market is expected to remain range-bound next week as geopolitical uncertainty and renewed tariff discussions weigh on global buying interest.

The Malaysian Rubber Glove Manufacturers Association (MARGMA) told Bernama that although regional futures markets posted gains this week on positive economic indicators from the United States and China, ongoing tensions in West Asia will continue to dampen market sentiment.

Echoing MARGMA, a dealer said market participants are also expected to closely monitor developments in the US-Iran conflict, which could continue to fuel volatility in commodity markets, as well as weather conditions in major producing countries.

“In addition, attention will focus on US payroll data that is set to influence the US monetary policy, global trade developments amid proposed US tariffs on major trading partners.

“Key economic indicators from major rubber consuming economies, particularly China and the United States, are expected to remain the primary drivers of rubber market sentiment in the near term,” she added.

Meanwhile, industry expert Denis Low said the rubber market is expected to trade on a subdued trend next week, with the supply side coping better than demand, giving prices a neutral bias.

“The commodity is holding quite well with supply and demand adequacy in equilibrium. While there have been sporadic thunderstorms and heavy rainfalls in some rubber producing regions as expected during an inter-monsoon period, the situation is manageable. 

“Buying is mainly on replenishment and not speculative and this gives the market its steady pace,” he said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose RM17 to RM909 per kilogramme, while latex in bulk fell four sen to 691.5 sen per kilogramme.

-- BERNAMA