Rubber Market To Remain Steady Next Week With Slight Upward Bias

By Danni Haizal Danial Donald

KUALA LUMPUR, Oct 24 (Bernama) -- The Kuala Lumpur rubber market is expected to remain steady next week, with a slight upward bias as any upward or downward pressure is likely to be minimal.

Industry expert Denis Low said the rubber market is not expected to experience significant volatility in demand or prices, even if geopolitical tensions continue to escalate.

“With the rising price of oil, production and logistics costs have increased too, thereby steadily increasing rubber prices. It is, however, still manageable as this mature industry knows its boundaries. 

“As supply and demand are in equilibrium, speculation has abated, with buying centring around replenishment only,” he told Bernama.

Low said the easing of adverse weather conditions has allowed rubber production to recover.

“The increase in rubber production yield has stabilised the market, ensuring sufficient supply to meet normal demand,” he said.

According to Low, the Thai Meteorological Department (TMD) forecasted thundershowers and isolated heavy rain for eastern Thailand and the southern coasts.

Regarding Malaysia, the weatherman forecasted thunderstorms, heavy rain, and strong winds in several parts of the country, he said.

The Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rising trend in latex prices may continue next week, noting that persistent weather issues, erratic rainfall, and El Niño concerns across major rubber producing regions will continue to impact raw material supply.

“For this week, the rubber market has been boosted by tyre demand due to car sales, while latex prices are also seen on the rise,” it said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased 9.5 sen to 1,042 sen per kilogramme (kg) while latex in bulk rose eight sen to 798.5 sen per kg.

-- BERNAMA